UAE-based crypto mining and blockchain firm Phoenix Group has acquired a 12.5% stake in Rekt Studios, which specialises in Web3 gaming and entertainment.

The investment, through the company’s fully owned subsidiary Phoenix INV Holdings, is a strategic step for the Abu Dhabi-listed company to expand beyond cryptocurrency mining, according to a statement on Tuesday.

“[The deal] marks a significant stride towards pioneering in Web3 gaming,” the statement noted.

Phoenix Group did not disclose the value of the transaction.

Based in the UAE, Rekt Studios creates highly immersive and interactive Web3 games, experiences and virtual environments, according to its LinkedIn profile.

The venture is expected to revolutionise the gaming industry and open new doors for gamers to own, manage and monetise their gaming experiences, said Elie Rizk, Founder and CEO of Rekt Studios.

(Writing by Cleofe Maceda; editing by Seban Scaria)