The United Arab Emirates (UAE) has secured its place among the world’s top government bitcoin (BTC) holders, with reserves valued at around $740 million. The country now ranks fourth globally, behind the United States, China, and the United Kingdom.
According to blockchain analytics firm Arkham, the UAE controls roughly 6,333 BTC through Citadel Mining, a government-backed public mining company.
According to its X post, Arkham Intelligence was the first to link the UAE’s Bitcoin addresses to Citadel Mining, whose majority shareholders are part of the UAE Royal Group via the International Holding Company (IHC).
Unlike nations that mainly accumulate bitcoin through law enforcement seizures, the UAE has built its reserves by direct mining. This was done via a project created in partnership with Phoenix Group, a major mining and blockchain infrastructure firm.
The strategy is part of the overall UAE objective to diversify its economy and become a major player in the digital assets space.
Bitcoin mining in the UAE is expanding due to positive regulation, energy-efficient processes, and strategic alliances. Citadel Mining has emerged as a key player, offering scale to its operations and helping the country in its long-term digital aspirations.
UAE Signals Crypto-Friendly Approach
The UAE action is in response to the growing institutional and sovereign appetite in BTC. While the U.S. has more than 200,000 BTC as a result of criminal cases seizures and China has massive confiscated reserves, the UAE’s strategy is different. The nation has focused on mining bitcoin instead of buying it on the market.
This move has placed the UAE as a crypto-friendly state and could also prompt other countries in the Middle East to consider bitcoin mining and treasuries. As Abu Dhabi and Dubai become blockchain centers, the UAE is obviously making a bid in the international digital asset competition.