Bitcoin News Today: UAE Mines $700M in Bitcoin, Rises as Global Digital Power Player

The United Arab Emirates has emerged as a significant player in the Bitcoin mining sector, with its government reportedly holding 6,300 Bitcoin (BTC) worth approximately $700 million at current market values, according to blockchain analytics firm Arkham Intelligence. These holdings are primarily attributed to mining operations conducted by Citadel Mining, a company majority-owned by the UAE government through the International Holding Company (IHC), which itself is under the control of the UAE Royal Group, led by Sheikh Tahnoon bin Zayed Al Nahyan of the Abu Dhabi royal family [1].

The Bitcoin mined by the UAE government was accumulated through a mining facility constructed in 2022 in partnership with Phoenix Group, another public UAE mining company. Arkham confirmed the timeline of the on-chain mining activity by cross-referencing it with satellite imagery of the facility's construction on Al Reem Island in Abu Dhabi. On-chain transactions between Citadel and Phoenix also align with official reports, further validating the transparency and traceability of the UAE’s mining efforts [2].

Unlike the United States and the United Kingdom, which have largely acquired Bitcoin through law enforcement seizures, the UAE’s holdings are the result of a deliberate and state-backed mining strategy. This approach places the UAE in a unique position, with Arkham estimating that the UAE has mined a total of 9,300 BTC, with 6,300 BTC remaining in government-controlled wallets [1].

In the global context, the UAE ranks sixth among nations in Bitcoin holdings, according to data from BitBo. The country now holds more Bitcoin than El Salvador, which has 6,246 BTC. The United States remains the largest holder with 198,012 BTC, followed by China with 194,000 BTC and the United Kingdom with 61,245 BTC. These holdings represent a total of 517,000 BTC in sovereign vaults globally, accounting for about 2.4% of Bitcoin’s total supply and valued at over $57 billion [3].

The UAE’s strategic investment in Bitcoin mining is part of a broader initiative to position itself as a leader in blockchain infrastructure and digital asset innovation. The country is leveraging low-cost energy and government support to expand its mining operations, aiming to diversify its economy beyond traditional oil-based revenue. This shift aligns with the UAE’s long-term economic vision to become a global hub for digital innovation and technology-driven industries [3].

The emergence of the UAE as a major Bitcoin holder has drawn international attention, with analysts noting the potential impact on the global cryptocurrency landscape. As the UAE continues to scale its mining capabilities, it is expected to play an increasingly influential role in shaping the future of digital assets and blockchain technology. The country’s unique approach to Bitcoin acquisition, rooted in mining rather than asset seizures, sets it apart from other major holders and reflects a forward-looking strategy to integrate digital assets into its economic framework [1].

Source:

[1] UAE Ranks Sixth in Bitcoin Holdings with $700M Stash (https://cointelegraph.com/news/uae-ranks-sixth-in-bitcoin-holdings-with-700m-stash)

[2] UAE Amasses 6300 BTC Worth $700 Million Through Mining (https://forklog.com/en/uae-amasses-6300-btc-worth-700-million-through-mining/)

[3] UAE Becomes 4th Largest Government Bitcoin Holder (https://www.livebitcoinnews.com/uae-becomes-4th-largest-government-bitcoin-holder/)