UAE Bitcoin Holdings Hit $740M Through State-Backed Mining

UAE’s Bitcoin holdings reached 6,333 BTC through direct mining by Citadel Mining.

Citadel Mining operates under the UAE’s Royal Group via International Holding Company.

Unlike other nations, the UAE acquires Bitcoin through mining, not seizures.

The United Arab Emirates has secured its position among the world’s largest government holders of Bitcoin, now ranking fourth globally. According to Arkham Intelligence, the UAE government holds approximately 6,333 BTC, valued at around $740 million at current market prices. These assets are controlled through Citadel Mining, a state-backed mining company.

Arkham publicly identified the government-controlled Bitcoin addresses linked to Citadel Mining. The company is majorly owned by the UAE’s Royal Group through International Holding Company (IHC). This structure reflects a coordinated national strategy to invest in and store Bitcoin as part of broader economic diversification goals.

State Mining Strategy Differentiates the UAE From Others

Unlike other governments that have acquired Bitcoin through law enforcement seizures, the UAE has built its reserve through mining operations. The country’s mining activities are primarily executed through Citadel Mining in collaboration with Phoenix Group, a regional leader in blockchain infrastructure.

Supportive regulations and energy-efficient infrastructure have contributed to the rapid development of mining operations in the UAE. Citadel Mining has emerged as a key player in the sector, combining scale and technology to ensure sustainable output. The government's direct role in this process sets it apart from countries like El Salvador, which have opted for market purchases.

UAE Trails Only the US, China, and UK in Holdings

With its current reserves, the UAE now stands behind only the United States, China, and the United Kingdom in terms of government Bitcoin holdings. The United States leads with over 200,000 BTC, mostly seized through legal proceedings. China and the UK follow with similarly confiscated assets.

The UAE's strategy could influence neighboring countries to adopt similar approaches toward Bitcoin. There is a growing trend across the Middle East, with governments exploring blockchain technologies and digital assets. Brazil has also announced plans to evaluate Bitcoin reserves, highlighting a broader international movement.

This development aligns with the UAE’s ongoing efforts to position itself as a hub for digital finance. Abu Dhabi and Dubai continue to attract blockchain firms, regulators, and exchanges. The country’s Bitcoin holdings reflect a long-term vision of strengthening its presence in the digital economy.

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