Phoenix is one of the global leaders in bitcoin mining, having built an extensive mining operation to become the largest mining pool on the bitcoin network. However, phoenix has also ventured into web3 investments in recent years through its investment arm Cypher Capital. In this article, we analyze phoenix’s bitcoin mining empire, as well as explore Cypher Capital’s investments into web3 projects.
Phoenix’s dominance in global bitcoin mining
Phoenix was founded by Bijan Alizadeh, who built it into the world’s largest bitcoin mining pool over the years. Phoenix controls over 30% of the global bitcoin mining hashrate, giving it enormous influence over the bitcoin network. This mining operation generates significant cash flows for Phoenix, which provided the capital for Bijan to establish the web3 investment firm Cypher Capital.
Cypher Capital’s move into web3 venture investments
Leveraging the cash flows from its bitcoin mining empire, Phoenix launched the venture capital firm Cypher Capital in 2021 to invest in early-stage web3 projects. Cypher Capital has emerged as one of the top web3 investors in the Middle East and Asia, leading rounds in layer-1 blockchain projects like Mysten Labs. The wide-ranging web3 investments by Cypher Capital, spanning areas like infrastructure, gaming, DeFi, SocialFi and more, represent Phoenix’s ambition to be at the forefront of the next generation of technological innovation.
Phoenix investments completing the web3 stack
In addition to the venture investments made by Cypher Capital, Phoenix has also directly invested into and operates various web3 companies under its ecosystem. For instance, Phoenix’s mining pools and nodes provide infrastructure support to web3 networks. Its crypto exchange Fenix provides trading services. And its gaming company Fenix Game is building web3 games funded by a $150 million warchest. Together with the venture investments, Phoenix has systematically built up presence across the web3 technology stack.
In conclusion, Phoenix leverages its lucrative bitcoin mining operations to fund web3 investments through Cypher Capital and its own web3 business ventures, strategically completing its coverage across the web3 sector from infrastructure to applications.