UAE's Bitcoin Strategy: State-Backed Mining Makes Emirates Top Holder

Executive Summary

The UAE government reportedly holds approximately 6,300 Bitcoin, valued at about $700 million, primarily accumulated through state-backed mining operations via Citadel Mining.

This revelation by Arkham Intelligence significantly revises previous speculative estimates that placed the UAE’s holdings much higher, at around 420,000 Bitcoin.

The UAE ranks as the sixth-largest nation-state holder of Bitcoin, distinguishing itself from other major holders like the U.S. and U.K., whose stashes largely originate from criminal seizures.

The Story So Far

The United Arab Emirates government has reportedly accumulated approximately $700 million in Bitcoin, primarily through state-backed mining operations by entities like Citadel Mining, a strategy that significantly revises previous speculative estimates of its holdings and distinguishes its acquisition method from other nation-states that largely obtain Bitcoin through criminal seizures.

Why This Matters

The confirmation that the UAE holds approximately $700 million in Bitcoin, primarily through state-backed mining operations rather than criminal seizures, significantly clarifies its actual involvement in the crypto market, dispelling previous inflated rumors. This unique accumulation strategy, which distinguishes the UAE from other major nation-state holders, highlights a proactive economic approach to digital assets and could potentially influence how other countries explore legitimate, state-sponsored methods for acquiring and integrating cryptocurrencies.

Who Thinks What?

Arkham Intelligence publicly identified wallet addresses belonging to the UAE government, containing approximately 6,300 Bitcoin ($700 million), primarily accumulated through state-backed mining operations via Citadel Mining.

Previous speculation widely suggested the UAE held around 420,000 Bitcoin ($46 billion), which would have made it the largest nation-state holder, with these rumored holdings thought to originate from criminal seizures.

The UAE government’s approach to Bitcoin acquisition, as revealed by Arkham, focuses on state-backed mining operations through companies like Citadel Mining, distinguishing its strategy from countries like the United States and the United Kingdom, whose holdings largely derive from police asset seizures.

The United Arab Emirates (UAE) government reportedly holds approximately $700 million in Bitcoin, primarily accumulated through state-backed mining operations rather than criminal seizures, according to blockchain analytics platform Arkham Intelligence. Announced on Monday, this revelation significantly revises previous speculative estimates that placed the nation’s holdings at a much higher value.

UAE’s Bitcoin Stash Identified

Arkham Intelligence stated in an X post that it has publicly identified wallet addresses belonging to the UAE government, which contain roughly 6,300 Bitcoin. This makes Arkham one of the first entities to publicly pinpoint these government-controlled digital assets.

The firm indicated that the Bitcoin was mined through Citadel Mining, a company majority-owned by the International Holding Company (IHC), a conglomerate linked to the UAE government. This contrasts sharply with the holdings of countries like the United States and the United Kingdom, whose Bitcoin stashes largely originate from police asset seizures.

Dispelling Previous Rumors

The newly reported Bitcoin holdings are substantially lower than what had been widely rumored. Speculation often suggested the UAE possessed around 420,000 Bitcoin, worth an estimated $46 billion, which would have positioned the Emirates as the world’s largest nation-state holder of the cryptocurrency. These rumored holdings were also thought to have come from sources such as criminal seizures.

Arkham elaborated that Citadel, in partnership with Phoenix Group—a public UAE mining company—and the IHC, established a Bitcoin mining facility in Abu Dhabi in 2022. The analytics firm corroborated its findings by matching the timeline of on-chain mining activity with time-lapse satellite imagery of the facility’s construction and cross-referencing on-chain transactions between Phoenix and Citadel with official reports.

In total, Arkham estimates that the UAE, through Citadel, has mined approximately 9,300 Bitcoin. Citadel Mining is 85% owned by 2pointzero, which is itself owned by the IHC. The UAE Royal Group, a conglomerate owned by Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi’s royal family, holds a 61% stake in IHC.

Global Context of Nation-State Holdings

With its newly identified holdings, the UAE would rank as the sixth-largest Bitcoin holder among nation-states, according to data from BitBo. This places it behind Bhutan but ahead of El Salvador.

The United States remains the largest nation-state holder of Bitcoin, possessing 198,012 BTC, primarily acquired through criminal seizures. China follows with an estimated 194,000 BTC, largely from its 2019 crackdown on the PlusToken scam, while the United Kingdom holds 61,245 Bitcoin, securing the third position.

The report by Arkham Intelligence provides a clearer picture of the UAE’s approach to Bitcoin acquisition, highlighting its focus on state-backed mining operations. This strategy differentiates it from other major nation-state holders, whose Bitcoin reserves are predominantly derived from law enforcement activities.