UAE's $700 Million Bitcoin Holdings Unveiled: A Nation-State's Bitcoin Mining Operation

The UAE holds around $700 million in bitcoin, mined from a state-owned bitcoin mining venture. The mining operation is owned by Citadel and operated in Abu Dhabi. The nation-state's bitcoin reserve is stored in a wallet identified by on-chain sleuths at Arkham Research. The UAE's involvement in bitcoin mining is seen as an interesting addition to other nation-states quietly accumulating large amounts of bitcoin.

The United Arab Emirates (UAE) has quietly accumulated a significant Bitcoin reserve, with an estimated value of around $700 million, according to on-chain sleuths at Arkham Research. This Bitcoin, mined from a state-owned mining venture, is stored in a wallet identified by Arkham, and is owned by a company linked to the UAE's sovereign wealth fund [2].

The mining operation, located near Abu Dhabi, is run by Citadel, a domestic company in the UAE. This operation is part of a broader trend of nation-states quietly stacking large amounts of Bitcoin. For instance, Bhutan has accumulated approximately 12,000 BTC, worth about $1.4 billion, as of July 2025 [2].

The UAE's involvement in Bitcoin mining and accumulation can be seen as a strategic move to leverage its surplus energy resources. By partnering with major companies in the industry, the UAE can focus on the mining operation without worrying about operational details. This approach allows the nation-state to benefit from the potential long-term appreciation of Bitcoin [2].

The UAE's Bitcoin holdings also highlight the growing interest among nation-states in the cryptocurrency. This interest is driven by factors such as favorable regulatory developments, the perceived benefits of blockchain technology, and the potential for higher returns in decentralized finance (DeFi) [1].

Moreover, the UAE's Bitcoin holdings are part of a broader trend of institutional investors showing growing interest in DeFi as an alternative source of yield. For example, institutional momentum toward onchain markets continues to grow, with platforms like aPriori raising funds to expand their trading infrastructure to bring high-frequency trading (HFT) onchain [1].

In conclusion, the UAE's Bitcoin holdings represent a strategic move by a nation-state to leverage its energy resources and benefit from the potential long-term appreciation of Bitcoin. This move is part of a broader trend of institutional investors showing growing interest in DeFi and onchain markets.

References:

[1] https://cointelegraph.com/news/apriori-raises-20m-onchain-hft-defi
[2] https://blockspace.media/insight/an-inside-look-into-the-uaes-700-million-btc-holdings/