UAE identified as holding $700M in Bitcoin from mining operations – Crypto News – Crypto News
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UAE identified as holding $700M in Bitcoin from mining operations – Crypto News

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11 months ago

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  • According to blockchain analytics platform Arkham Intelligence, the United Arab Emirates holds about $700 million in Bitcoin.
  • Arkham traced the mining activity to Citadel Mining, which it said was established in Abu Dhabi in 2022.
  • Based on Arkham’s report and estimates from BitBo, the UAE ranks sixth among sovereign Bitcoin holders.

The United Arab Emirates holds about $700 million in Bitcoin, primarily accumulated from mining operations, according to blockchain analytics platform Arkham Intelligence.

In a post on X on Monday, Arkham said it had become one of the first to publicly identify the UAE government’s wallets, estimating that they contain about 6,300 Bitcoin.

The holdings were attributed to mining conducted through Citadel Mining, a company majority owned by the government-backed International Holding Company (IHC).

Arkham noted that, unlike the United States and the United Kingdom, where national Bitcoin holdings have largely come from police asset seizures, the UAE’s reserves are linked directly to mining.

Speculation around the country’s Bitcoin exposure had previously suggested much larger reserves.

Market rumors often placed the UAE’s holdings at around 420,000 Bitcoin, worth roughly $46 billion at current prices, and allegedly sourced from seizures of illicit activity.

Those estimates, if accurate, would have positioned the UAE as the largest sovereign Bitcoin holder globally.

Arkham’s findings, however, put the figure substantially lower.

Mining operations tied to royal-linked conglomerates

Arkham traced the mining activity to Citadel Mining, which it said was established in Abu Dhabi in 2022.

The firm reported that the venture was developed in collaboration with Phoenix Group, a publicly listed UAE mining company, and the IHC.

Arkham added that it corroborated the timeline of on-chain mining activity with satellite imagery showing the construction of the facility.

The company said on-chain transactions between Phoenix and Citadel also matched figures disclosed in official documents.

Based on its analysis, Arkham estimated that Citadel Mining has mined a total of 9,300 Bitcoin to date.

Citadel Mining is 85% owned by 2pointzero, a holding entity controlled by IHC.

The IHC itself is majority owned by the UAE Royal Group, a conglomerate led by Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi’s royal family, which holds a 61% stake.

How UAE compares with other nation-states

Based on Arkham’s report and estimates from BitBo, the UAE ranks sixth among sovereign Bitcoin holders.

Its reserves place it behind Bhutan, which holds 11,286 Bitcoin, and ahead of El Salvador, which holds 6,246.

The United States remains the largest holder with 198,012 Bitcoin, most of it originating from law enforcement seizures.

China follows with 194,000, mainly stemming from its 2019 crackdown on the PlusToken scam, while the UK ranks third with 61,245.

BitBo estimates that sovereign entities collectively hold about 517,000 Bitcoin, or 2.4% of the total circulating supply, with a total value exceeding $56 billion.

In the corporate sector, Michael Saylor’s firm MicroStrategy is cited as the largest institutional holder, with a treasury of 629,376 Bitcoin, representing about 2.9% of the supply.

The company continues to expand its Bitcoin reserves.

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