The UAE has emerged as a major government Bitcoin holder, but its path was different. Its $700 million stash flagged by Arkham wasn’t bought or seized; it was mined by a facility built in six months, showcasing an industrial approach to crypto reserves.
Summary
- Arkham identified $700M in Bitcoin held by the UAE, mined through Citadel Mining.
- The UAE now ranks as the fourth-largest government Bitcoin holder, behind the U.S., China, and the U.K.
On August 25, blockchain intelligence firm Arkham identified a cluster of Bitcoin (BTC) addresses holding approximately $700 million in BTC, attributing them directly to the United Arab Emirates government.
The analysis revealed these assets were not acquired on the open market or through seizures, but were instead mined operationally by Citadel, a firm majority-owned by a conglomerate of the Abu Dhabi royal family.
This attribution, a first for a sovereign wealth operation of this kind, was corroborated by matching on-chain mining activity with satellite imagery of a facility constructed on Al Reem Island in 2022, Arkham said.
The scale and strategy of a sovereign Bitcoin miner
According to Arkham’s analysis, the scale of the UAE’s mining endeavor is substantial. Their investigation indicates that the state-backed operation has successfully mined approximately 9,300 Bitcoin since its inception. Of that total output, the entity is still holding at least 6,300 BTC, suggesting a disciplined, long-term holding strategy rather than immediate monetization of the asset.
The mining-based accumulation strategy instantly places the UAE among the most significant government holders of Bitcoin globally. Within Arkham’s own data, the UAE now ranks as the fourth-largest government entity by Bitcoin holdings, ranking behind only the United States, China, and the United Kingdom, and notably ahead of more publicized national holdings like those of El Salvador.
Meanwhile, the broader landscape of government Bitcoin ownership, as tracked by other monitors like BitcoinTreasuries.Net, provides critical context for the UAE’s position. Their data confirms that a total of twelve government entities currently holding a combined 526,353 BTC, valued at over $59 billion.
The vast majority of these holdings are concentrated with a few key players. The United States government leads with 198,021 BTC, followed closely by China with 190,000 BTC, and the United Kingdom with 61,245 BTC. The entry of the UAE into this exclusive club through a uniquely organic method challenges the existing paradigms of how a nation builds a digital asset reserve.
