The United Arab Emirates (UAE) has quietly built one of the world’s largest government bitcoin treasuries. Unlike most countries that get their bitcoin through seizures or purchases, the UAE has gone the mining route.
According to blockchain analytics firm Arkham Intelligence, the UAE controls over 6,300 bitcoin — worth around $700 million — making it the 4th largest government bitcoin holder after the United States, UK, and Bhutan.
Although the statistics vary from one analytics platform to another. According to BitcoinTreasuries, the UAE is now the 7th largest holder, falling behind the United States, China, the UK, Ukraine, North Korea, and Bhutan.
Most governments that hold bitcoin got it through law enforcement seizures. The U.S. has almost 200,000 BTC from Silk Road and ransomware cases. China has 190,000 BTC from the PlusToken scam, and the UK has over 60,000 BTC from money laundering investigations.
According to Arkham, the UAE is unique because its holdings didn’t come from seizures. Instead, they were mined by Citadel Mining, a public mining company tied to the Abu Dhabi royal family.
Arkham announced on August 25 that the UAE’s bitcoin holdings are now labeled on the platform. ”These holdings come from Bitcoin mining operations carried out by Citadel, a public mining company majority owned by UAE Royal Group through IHC,” Arkham added.
The backbone of the UAE’s bitcoin strategy is Citadel Mining’s massive facility on Al Reem Island in Abu Dhabi, built in just six months in 2022. The project was developed with Phoenix Group, another UAE-based blockchain infrastructure company.
Arkham says it verified Citadel’s operations by combining on-chain mining data with satellite imagery of the facility’s construction. On-chain transactions between Phoenix and Citadel also matched official reports, confirming government involvement.
Since launch, the operation has mined around 9,300 BTC, with about 6,300 BTC still held in UAE-controlled wallets. The rest has likely been sold or used to fund operations.
Ownership of Citadel Mining goes straight to the UAE’s ruling elite. Here’s the breakdown:
- 85% of Citadel Mining is owned by 2pointzero.
- 2pointzero is fully owned by International Holding Company (IHC).
- 61% of IHC is owned by UAE Royal Group, which is led by Sheikh Tahnoon bin Zayed Al Nahyan, a member of the Abu Dhabi royal family.
This shows that the bitcoin mining initiative is not just a private company, but part of a broader government strategy.
The UAE approach is different from smaller countries like El Salvador, which made bitcoin legal tender and buys it on the open market. Instead, the UAE is building reserves through infrastructure and energy investments.
According to BitcoinTreasuries, government bitcoin holdings worldwide are estimated to be more than 526,000 BTC valued at over $57 billion.
With 6,300 BTC, the UAE may not match those numbers, but being in the top 10 is significant. There were earlier rumors claiming that the UAE had hundreds of thousands of BTC, but Arkham’s data shows a more modest but still substantial number.
