UAE Phoenix Group reports $35.9 million in revenues from crypto mining, a 7% quarter decline

UAE Phoenix Group reports $35.9 million in revenues from crypto mining, a 7% quarter decline

UAE’s multi-billion dollar tech conglomerate, Phoenix Group PLC, listed on the Abu Dhabi Securities Exchange (ADX: PHX) has announced its Q3 2024 results, reporting core revenue of $35.9M and investment income of $68.5M. Core revenue is primarily generated from self-mining, with additional contributions from trading and hosting services. The investment income, drawn from digital assets and other diversified Web3 investments, reflects the company’s active capital deployment strategy.

As per the press release, total assets saw a 148% year-over-year increase in the first nine months of 2024, rising to $977.6 million from $394.1 million, with a 6% quarter over quarter increase.

The self-mining segment achieved significant growth, surging 285% year-over-year to $26.6 million in Q3 2024, up from $6.9 million in Q3 2023. Earnings per share for Q3 2024 were reported at $0.008.

Q3 2024 revenue came in at $35.9M, with a decline in trading and hosting revenue due to the company’s strategic shift towards deploying more inventory into self-mining. Self-mining revenue has shown resilience, with only a 7% quarter-over-quarter decrease despite the full impact of the halving, increased mining difficulty, and lower BTC prices. Phoenix Group anticipates improvements in mining economics as early indicators of a new bull market begin to emerge.

The company achieved robust returns from investments, marking a 16% quarter-over-quarter growth driven primarily by gains from new digital asset investments.

As per the release, Phoenix Group demonstrated a strong ability to generate value across diverse Web3 investments, with some assets, such as Solana tokens, achieving over 4x returns. The company is actively pursuing a strategy to increase capital deployment into foundational deals and incubation projects. Despite a challenging quarter for the industry, Phoenix Group has shown notable resilience and a strong bottom line, outperforming many peer mining companies.

“Our Q3 results reflect the effectiveness of our adaptive investment strategy, particularly within the self-mining sector and across digital assets. Phoenix Group remains committed to capitalizing on emerging opportunities within Web3 and digital assets, ensuring we continue to lead with innovation and resilience. As we expand into foundational projects and incubation deals, we are well-positioned to provide significant value to our shareholders and support growth in the region’s tech landscape.” said Seyed Mohammad Alizadehfard (Bijan), Co-Founder and Group CEO of Phoenix Group.

“Our Q3 achievements underscore Phoenix Group’s dedication to proactive and sustainable growth, especially within the self-mining and digital asset sectors. By leveraging market dynamics and focusing on foundational investments, we continue to unlock new value streams that fortify our resilience and enhance our market leadership. We remain committed to aligning our strategies with shareholder interests, building a robust platform that stands resilient against market volatility while advancing the UAE’s tech landscape.” said Munaf Ali, Co-Founder and Group Managing Director of Phoenix Group.

In May 2024, Phoenix Group announced its Q1 results, showcasing a net income of $66.2 million which it noted was representing a growth of 166% year-on-year. As per the press release, total assets surged by 237% year-over-year, soaring to $879.3 million from $261 million. ⁠

At the time Phoenix Group noted that quarter-over-quarter growth in total assets stood at 5%, while revenue experienced an 18% quarter-on-quarter increase, reaching $68.9 million. In addition gross profit saw a robust 82.8% quarter-on-quarter rise, amounting to $23.28 million, while total comprehensive income expanded by 312% year-on-year to $102.28 million and by 33.7% quarter-on-quarter. As such the earnings per share for Q1 2024 amounted to $0.011.

It would seem that earnings per share has decreased in Q3 to $0.008 from $0.011 in Q1.

UAE licensed crypto exchanges target Institutional Investors with new products and offerings

UAE licensed crypto exchanges target Institutional Investors with new products and offerings

In just 24 hours several crypto exchanges licensed in the UAE have been promoting new offerings and campaigns targeting professional and institutional traders. OKX, Binance, GCEX and Deribit all have come out with announcements on new service offerings for institutional players, and all these crypto exchanges have licenses in the UAE.

OKX, a leading cryptocurrency exchange and global on chain technology company, announced the launch of its ‘Trade Like a Pro’ brand campaign. The campaign celebrates “A New Alternative for the UAE,” marking OKX’s recent milestone of becoming operationally live and licensed in the region as of October 10, 2024.

It is tailored specifically for UAE audiences and presented in both Arabic and English, the campaign provides a unique opportunity for local traders to learn strategies from professional traders in their market and understand why they chose OKX as their preferred trading platform. OKX is the first global crypto company in the UAE to offer AED banking rails for its retail and institutional customers and this campaign further underscores its commitment to the UAE and dedication to fostering the growth of the crypto and Web3 ecosystem in the region.

To celebrate the launch of this campaign in the UAE, OKX is offering eligible customers the chance to receive up to 100 USDT by reaching set trading volumes across spot and futures. Additionally, customers can earn 10 USDT by depositing 50 USDT into their accounts, plus an extra 50 USDT for sharing the campaign on their social media platforms. For more details about the ‘Trade Like a Pro with OKX’ campaign, running from October 29 to November 30, click here.

Even Binance has announced Binance Wealth, a technological solution for wealth managers. As per Binance, Binance Wealth allows wealth managers to oversee the onboarding of their clients and make investment recommendations, allowing their clients to receive strong support during onboarding and thereafter while retaining full discretionary control, akin to traditional wealth management.

Wealth managers must first apply to access Binance Wealth. After being successfully onboarded, they can then help support their clients’ onboarding journey by submitting the necessary KYC/KYB documentation for verification. Onboarded clients can then manage their own investments directly as well as receive recommendations from their

Catherine Chen, Head of Binance VIP & Institutional shared, “As investors worldwide recognize the potential of digital assets, we are responding to wealth managers and their clients asking for a solution to more easily access crypto. Unlocking capital inflow is key to making digital assets mainstream but there has long been a lack of traditional infrastructure for the private wealth segment to gain exposure to crypto. Binance Wealth will reduce the entry barrier for more market participants to access this new asset class and help bridge crypto and traditional finance.”

While GCEX Group, digital asset and foreign exchange solutions, has partnered with RULEMATCH, a leading market operator, to offer its institutional clients access to one of the world’s fastest trading venues for cryptocurrencies.

RULEMATCH is a spot crypto trading venue based in Switzerland, built on institutional grade technology. In addition to unparalleled execution speeds, it offers access to competitive and consistent liquidity from regulated market makers, capital efficient post-trade settlement, and stringent AML/CFT controls.

This latest development from GCEX enables its client base of hedge funds, algorithmic trading firms, brokers and ETF/ETP providers to benefit from binding quotes in an anonymous Central-Limit Order Book (CLOB) and execution times of 25 microseconds. To ensure capital efficiency and minimise settlement risks, multilateral clearing and settlement are fully integrated and handled via GCEX acting as Prime Broker Sponsor.

Lars Holst, CEO, GCEX said, “We are continually looking to push boundaries and extend our offering. Our partnership with RULEMATCH presents a fantastic opportunity for our clients. RULEMATCH is built on state-of-the-art institutional grade technology that offers ultra-low latency trading of cryptocurrencies, with ultra-competitive fees and consistent execution latency down to 25 microseconds. Their offering is very impressive and we share the same ethos in terms of market integrity and professionalism.”

Finally Deribit, a digital assets derivatives exchange, launched its support for hybrid custody solutions that allow for quicker onboarding of third-party custodians and brokerages for capital markets traders. At launch, custody firms set to utilize the hybrid model include Fidelity Digital Assets®, Copper Securities, and Zodia, with others set to be onboarded later this year.

Deribit’s current third-party custodians are fully integrated with the exchange, allowing traders to leverage all of Deribit’s trading capabilities via an API without the funds ever needing to leave their account. However, these integrations take time, making it harder for institutional traders to access the exchange and giving them fewer options for how to secure collateral. The hybrid custody model solves this problem as custodians are able to offer Deribit as a trading venue without needing full integration, giving traders using Fidelity Digital Assets® and others faster access to the Deribit trading platform.

Deribit CEO Luuk Strijers commented on the news, “At Deribit, we are committed to continually innovating and meeting the evolving needs of our institutional members and make it easier for all to access crypto derivatives markets. Throughout 2024, we have continued to focus on our institutional clients to create a fulsome trading experience in the broader finance ecosystem. Supporting a hybrid custody model marks a significant step forward, providing enhanced flexibility for accessing Deribit’s world-class digital asset derivatives trading offerings. By allowing for a hybrid model with these external custody solutions, we empower our clients while maintaining the seamless trading experience Deribit is known for.”

In a hybrid model, Deribit traders leveraging a custodian that isn’t integrated with the exchange will have to store a percentage of assets on the exchange to meet collateral requirements, while the rest will be secured by their custodian of choice. Members will need to deposit 20% of their total assets on Deribit by default, but this number is subject to change depending on trading activity, exposure, risk profiles, and market conditions. Daily settlements of profit and loss occur within the Deribit platform.

As of early 2024, institutional investors and companies have poured billions into the cryptocurrency space. In Q1 2024, over $2.4 billion was invested by venture capital firms in crypto startups. Over 70% of institutional investors are planning to put money in crypto this year.

Institutional investment in the crypto space is surging in the United Arab Emirates. Blockchain data platform Chainalysis found that institutional investments (each exceeding $1 million in value) constituted more than 67% of cryptocurrency transactions in the federation of seven emirates between July 2022 and June 2023. Following these institutional transactions were transfers linked to professional investments, ranging from $10,000 to $1 million, and retail investments made up 4.63% of all transfers in the Emirates, according to a report published on Sept. 26.

RAIN Crypto broker appoints new General Manager for Bahrain

RAIN Crypto broker appoints new General Manager for Bahrain

Rain crypto broker in Bahrain has appointed a new General Manager, replacing Mohamed Ateeq, its previous GM of four years.

In an Instagram post Rain commented, “We would like to announce that after more than 4 years of exceptional service, Mohamed Ateeq will be stepping down as General Manager of Rain Bahrain. Mohamed’s loyalty and leadership were instrumental in helping Rain become the first fully licensed crypto brokerage in the Gulf, setting a foundation for crypto adoption across the region. His deep understanding of the market, dedication to innovation, and commitment to regulatory excellence have been key to Rain’s success in pioneering the industry in the Middle East.”

The new General Manager is Mr. Geoff Stecyk, who has a strong banking background.

Rain notes, “Geoff Stecyk as our new General Manager will guide Rain Bahrain through its next stage of growth and continued market leadership.”

Rain was the first crypto broker to receive a license in Bahrain. In 2023 RAIN Bahrain noted that it had traded $484 million worth of crypto since its inception in 2019 with Ethereum the most traded crypto asset followed by XRP. It also noted that its customer base at the time was 75,000 from Bahrain residents.

In May 2024, in a blog post, RAIN Crypto exchange regulated in both Bahrain and the UAE issued a statement replying to the report by ZachXBT that the exchange had likely been exploited for $14.8 million, addressing the security incident involving the exchange. They noted” We would like our customers to know that the situation has been resolved. We assure you that we have already taken all the necessary steps to address this matter to protect customer funds.”

The crypto exchange was replying to the news circulating that “It appeared the crypto exchange Rain was likely exploited for $14.8M on April 29, 2024 after their BTC, ETH, SOL, and XRP wallets saw suspicious outflows. Funds were quickly transferred to instant exchanges and swapped for BTC and ETH.”

UAE Zand Bank at the center of a BRICS stablecoin

UAE Zand Bank at the center of a BRICS stablecoin

IDA, a Hong Kong-based stablecoin issuer, has partnered with UAE Zand Bank, the first fully licensed all-digital bank to offer cost-effective and efficient cross-border transactions across the Belt and Road regions and BRICS Plus. As per the press release both entities aim to provide businesses with streamlined 24/7 digital payments.

Michael Chan, CEO at Zand Bank commented: “We are excited to partner with IDA. Together, we are committed to strengthening connectivity between the Middle East and North Africa (MENA) region and China, fostering greater economic collaboration and opportunities for growth. By leveraging blockchain technology and AI, we are making cross-border payments more efficient, reliable, and accessible for everyone.”

IDA is a digital asset technology company to spearhead the widespread adoption of blockchain finance and to empower businesses to seamlessly integrate between Web2 and Web3. HKDA, a fiat-referenced stablecoin built on public blockchain protocols, will be the first product launched by IDA. HKDA is designed to drive enhanced digital connectivity for seamless commerce and payments between Hong Kong and global markets, 24/7/365. To maintain the highest level of security and stability, all circulating HKDA will always be fully backed by at least 100% reserve assets in regulated Hong Kong based authorized institutions.

Commenting on this partnership, Sean Lee, Co-founder and CSO at IDA said: “We are thrilled to partner with Zand Bank as this partnership aligns with the broader goals of financial innovation and digital transformation in the Middle East and Asia, positioning both companies at the forefront of the fintech revolution. The integration of stablecoins into cross-border payments promises to bring unprecedented transparency and stability, ensuring users can confidently transact with fiat-referenced digital currencies, and provides convenience for businesses which would like to access the Belt and Road countries.”

In subsequent phases, IDA will also launch key products denominated in other US Dollar (USD) pegged currencies with ecosystem partners across regulated financial institutions and Web3 platforms.

The UAE Central Bank recently regulated stablecoins in the country, allowing for the issuance of AED stablecoins for payments for good and services in the country.

In addition AECoin recently received in principle approval from UAE Central Bank, while Tether works to launch its AED Stablecoin in Q1 of 2025.

Zand Bank is a leading digital bank in the UAE that is utilized by various crypto exchanges and VASPs.

Emirates NBD opens digital assets Lab academia

Emirates NBD opens digital assets Lab academia

Emirates NBD, a lMENAT banking group in the MENAT (Middle East, North Africa and Türkiye) region, has announced the extension of its Digital Asset Lab to now also include academia, through the launch of its Future Leaders Outreach Program. The program was launched at an event hosted at and facilitated by DIFC Innovation Hub, Emirates NBD’s long-term strategic partner.

The Digital Asset Lab currently has four members including founding members PwC and Fireblocks, and enterprise distributed ledger technology platform, R3 and the blockchain data platform, Chainalysis as additional members.

Through the Future Leaders Outreach Program and supported by early partners including the University of Sharjah and the Higher Colleges of Technology, the bank aims to drive its innovation mission while nurturing future talent and supporting the Dubai Economic Agenda D33. Academic partners will have access to masterclasses from Emirates NBD’s internal experts alongside industry specialists from Digital Asset Lab members Fireblocks, PwC, Chainalysis, and R3. These sessions will cover a range of innovative topics, including real-world business experiments. Through these hands-on learning opportunities, students will gain valuable insights into the evolving digital asset landscape and diverse applications across various industries.

The Digital Asset Lab was announced in May 2023 with the goal of enabling and accelerating digital asset and financial services innovation in the UAE.

Saud Al Dhawyani, Group Chief Platform Officer at Emirates NBD, said, “We are excited to announce the launch of our Future Leaders Outreach Program. As a leading national bank, we have always remained committed to investing in our youth to nurture their talent that will contribute to national efforts of building a strong digital economy. Thus, the extension of Emirates NBD’s Digital Asset Lab to also include education partners was the clear progression in its growth journey. We look forward to the success of the program, supported by our members and now educational partners.”

Dr. Hatem Tamimi, Computer Information Science Associate Executive Dean, Higher Colleges of Technology, noted, “It is with great pleasure that we are collaborating with Emirates NBD on its National Digital Talent Program as well as its Digital Asset Lab. The Digital Asset Lab will provide a platform for HCT students to access learning portals and a sandbox environment that complements our students applied and competency-based approach to learning. We see this as a win-win-win partnership.”

His Excellency, Prof. Hamid M. K. Al Naimiy, Chancellor of the University of Sharjah, said: “The Digital Asset Lab initiative offers our students an outstanding opportunity to engage with the fast-evolving world of digital assets. Through our collaboration with Emirates NBD, we are enriching their academic journey while equipping them with the skills and expertise needed to become leaders in the digital economy. This partnership underscores our university’s commitment to innovation and shaping the future leaders of the UAE.”

Mohammad Alblooshi, Chief Executive Officer, DIFC Innovation Hub, said: “We are proud to support Emirates NBD’s Future Leaders Outreach Program. This initiative aligns perfectly with DIFC’s mission to foster innovation, enterprise, and talent across sectors in the MEASA region. By collaborating with academia and industry leaders, we are creating a robust platform for nurturing future digital talent and driving the UAE’s innovation agenda forward.”

OKX to use Standard Chartered for crypto custody

OKX to use Standard Chartered for crypto custody

OKX, cryptocurrency exchange and global onchain technology company, will be utilizing Standard Chartered, cross-border bank connecting the world’s most dynamic markets, as a third-party crypto custodian for its global institutional business.

The custody agreement with Standard Chartered is a significant addition to OKX’s comprehensive suite of institutional services, which includes advanced trading capabilities, robust risk management tools and enhanced custody solutions. By leveraging Standard Chartered’s extensive global banking expertise and rigorous risk management framework, OKX aims to offer institutional investors a broader range of secure and reliable custody solutions.

OKX Global Chief Commercial Officer Lennix Lai said, “We selected Standard Chartered as an institutional custodian partner to enhance our offering and accelerate the integration of digital assets within the traditional financial ecosystem. Standard Chartered’s extensive global banking expertise and unwavering commitment to security aligns with our objective to provide exceptional crypto services and reinforces the confidence of our institutional clients in managing their digital assets.”

Standard Chartered Global Head of Financing & Securities Services Margaret Harwood-Jones said “We are committed to offering custodial services that meet the highest standards of safety and compliance. Serving as OKX’s third-party custodian allows us to extend our expertise into the evolving cryptocurrency sector, providing institutional investors with the assurance they require.”

This collaboration is expected to attract increased institutional participation in the digital asset market, contributing to a more mature environment for institutions globally. It aligns with the findings of a recently published OKX-commissioned research brief authored by Economist Impact, entitled “Digital assets as the new alternative for institutional investors: market dynamics, opportunities and challenges,” which highlights institutional investors’ view that digital assets are an inevitable institutional opportunity. The report also finds that 80% of traditional and crypto hedge funds utilizing digital assets employ third-party custodians, highlighting strong demand for segregation of duties related to trade execution and asset custody.

Prior to this announcement Brevan Howard became the first client for Standard Chartered regulated crypto custody service out of DIFC. DIFC ( Dubai International Financial center) regulator DFSA ( Dubai Financial has granted a license to Standard Chartered for its digital asset custody service in the UAE. 

UAE Quantix Capital invests $1 million in Tezos blockchain TZPAC

UAE Quantix Capital invests $1 million in Tezos blockchain TZPAC

UAE Venture Capital firm, Quantix Capital has invested one million dollars in Tezos, through its Singapore adoption hub TZ APAC, with the aim of boosting blockchain gaming innovation on the Tezos platform.

As per the press release, the global blockchain gaming market was valued at $128.62 billion in 2022. By 2030, it’s expected to skyrocket to $614.91 billion, growing at 21.8%.

Blockchain technology allows players to gain true ownership of in-game assets, creating new economic opportunities for players around the world. At the core of this category are Play-to-Earn (P2E) games. These attract new players and provide additional revenue for developers. These games create a real-world use of gaming assets, allowing developers to earn royalties on secondary sales and greatly enhance the gaming ecosystem.

Jake Seltzer, Managing Director of Quantix Capital stated, “Tezos Web3 is uniquely positioned to lead innovation in this space.” He adds, ‘Our investment goes beyond financial backing; it’s a commitment to empowering the creators who are reshaping the future of games and interactive experiences.”

His counterpart, Jeremy Foo, Head of Gaming at TZ APAC, shares this ambitious vision. With a focus on nurturing a fair and inclusive gaming ecosystem, they are paving the way for a new era of gaming that goes beyond mere entertainment.

Eco-Friendly and Efficient Tezos operates on an eco-friendly Proof-of-Stake (PoS) model, slashing energy consumption compared to traditional blockchains. In an era where sustainability is a hot topic, this approach resonates with developers and eco-conscious gamers.

With Quantix Capital’s backing, the Tezos blockchain is set to welcome a wave of pioneering gaming projects. Many projects using Tezos are already underway, spanning a variety of genres—from real-world economy and interactive role-playing games (RPGs) to co-op games.

UAE, Argentina, and Ethiopia mine Bitcoin using government resources

UAE, Argentina, and Ethiopia mine Bitcoin using government resources

Matthew Sigel, Head of Digital Assets Research at VanEck Investment firm speaking on CNBC SquakBox noted that three new BRIC members, Argentina, UAE, and Ethiopia have begun mining Bitcoin using government resources

According to him this is a trend among BRICS nations toward exploring digital assets for economic resilience and financial independence.

Tremendous urgency to circumvent the fiscal policy in USA.

He also noted in the interview that Russia’s Sovereign Wealth Fund is investing in Bitcoin mining throughout BRICS countries with the goal of settling global trade in Bitcoin.

This comes months after a Bloomberg story about Chinese bitcoin miners in Ethiopia and Ethiopia plans of its government-funded $250M Bitcoin mining JV.

At the time Sigel tweeted, “Despite the ban on crypto trading in the country, 2022 saw the ratification of favorable data mining laws that permit “high-performance computing” and “data mining,” which is where bitcoin mining falls under. In the last two years, this has opened the floodgates to miners seeking its comparatively positive reception to bitcoin mining, coupled with its abundance of energy sources—chiefly hydro—to its optimal weather and cheap energy costs.”

UAE was one of the first to have a sovereign wealth backed crypto mining entity listed on the Abu Dhabi Stock Exchange. Phoenix Group currently holds 4% of Bitcoin mining globally.

In Oman as well, Chinese backed and UAE backed Phoenix Group have invested in Bitcoin mining projects in the country.

RAK DAO has close to 400 companies on its premise

RAK DAO has close to 400 companies on its premise

Ras Al Khaimah Digital Assets Oasis (RAK DAO), a free zone created for virtual asset companies, has attracted close to 400 companies in a year and is aiming to play a big role in the gaming industry.

“In 12 months, we welcomed just shy of 400 companies, issuing licenses to a diverse range of businesses in all the segments. Ras Al Khaimah Digital Assets Oasis is a global platform for the most exciting technology segments of our lifetime – artificial intelligence (AI), metaverse, blockchain, Web3, and many others shaping our future and of our children,” said Dr. Sameer Al Ansari, CEO of RAK Digital Assets Oasis.

During the RAK DAO conference, Dr Al Ansari highlighted the immense size of the gaming industry, which surpasses both the music and movie industries combined. “We believe Ras Al Khaimah can play a big part in the development and growth of the gaming industry,” Al Ansari said while speaking during the conference hosted by the free zone on Friday.

He added: “We’ve also created a thriving ecosystem that has forged partnerships with key players in the industry. This further highlights Ras Al Khaimah’s growing reputation as a hub for digital innovation in the UAE, which is now ranked third in global crypto adoption. That is a lot of progress in the last five years.”

At the conference, RAK DAO also introduced the DAO Association Regime, a legal framework tailored to support decentralised autonomous organisations (DAOs)

“DAOs represent a significant shift in governance, driven by smart contracts and decentralised decision-making. They are projected to grow by over 20 per cent annually in the coming years. But with decentralisation comes significant challenges, especially when it comes to interacting with the off-chain world,” explained Al An Sari.

He added, “The regime addresses these challenges. It offers DAOs a comprehensive framework that provides legal identity and limited liability for their members. This ensures that participants are not personally liable for the organisation’s activities.”

Describing this initiative as a game changer for the Web3 landscape, the free zone introduced two new modules: Startup DAOs, aimed at emerging projects with less than 100 members, and Alpha DAOs, designed for more established DAOs with treasuries exceeding $1 million, allowing them to scale within a robust legal framework.

“DAOs are becoming essential to the Web3 ecosystem. Today, there are over 50,000 DAOs with treasuries exceeding $25 billion. This reflects the growing trust and reliance on decentralised governance. However, without legal recognition, many DAOs face barriers to interacting with the traditional financial systems,” he said, adding that now DAOs can open bank accounts and raise capital among other activities with greater privilege.

“By introducing RAK DAOs, the UAE sets the global standard for how decentralized organizations can operate within the legal framework. This initiative supports not only the most digital assets here but also serves as the blueprint for other jurisdictions that are still grappling with how to regulate DAOs. Looking ahead, DAOs will play an increasingly integral role in the sectors beyond finance and technology,” added Al Ansari.

Saudi Web3 blockchain fund invests in Tharawat Green Exchange

Saudi Web3 blockchain fund invests in Tharawat Green Exchange

Adaverse, Cardano Web3 and blockchain fund in Saudi Arabia, has invested in KSA based Blockchain enabled TGE (Tharawat Green Exchange), a startup leveraging Web3 technology to support environmental sustainability initiatives in line with Saudi Vision 2030.

TGE is working on carbon offsetting in Saudi Arabia, connecting carbon offsetters with local nurseries and land projects via a blockchain-enabled platform. This innovative model supports Saudi Arabia’s goal of planting 10 billion trees by 2040, while also promoting economic growth and environmental health.

Unlike global providers that invest in projects abroad, TGE is fully localized, focusing solely on Saudi-based projects to build the local environmental ecosystem. The business model involves three key stakeholders: projects requiring trees, nurseries supplying them, and offsetters funding the planting to meet their carbon goals.

The investment, totaling 1.69 million SAR, ( $450,000) will be used primarily for infrastructure and blockchain development, sales and marketing efforts, and obtaining Vera certification for TGE’s carbon credits. This certification will ensure that TGE’s carbon crypto is recognized and valued in the global market.

Vincent Li, Founding Partner of Adaverse, commented, “Our investment in TGE aligns perfectly with our mission to foster innovative Web3 solutions that address real-world challenges. TGE’s approach to combining blockchain technology with environmental sustainability has the potential to transform how we approach carbon offsetting and tree planting initiatives in the region.”

Yakeen Al Zaki, CEO and Co-founder of TGE, stated, “With Adaverse’s support, we are poised to make a significant impact on Saudi Arabia’s sustainability goals. Our platform simplifies the process of contributing to environmental initiatives, making it accessible for anyone to participate in building a greener future.”

Tharawat Green Exchange is targeting a $500+ billion market, with plans to expand globally, eyeing a $1 trillion annual market expected to grow by 6% year over year. Looking ahead, TGE aims to raise an additional 1.5 million SAR to further product development, technology infrastructure and market penetration.

This is not the first investment Adaverse has made in startups in Saudi Arabia. Recently it invested half a million dollars ($500,000) as a pre-seed investment in Saudi loyalty platform, Mithu, a platform aggregator for restaurants and cafes in Saudi Arabia. Mithu aims to solve a critical problem in the loyalty program market, where customers struggle to manage multiple loyalty programs and billions of dollars worth of points expire annually.