UAE Holds Over $700 Million in Bitcoin Holdings

TLDR

• UAE holds over $700 million in Bitcoin from mining.
• Citadel Mining has mined 9,300 BTC, holding 6,300 BTC.
• UAE aims to diversify its economy beyond oil revenues.

The government of the United Arab Emirates has been identified as holding over $700 million worth of Bitcoin (BTC). Entities linked to Abu Dhabi’s royal family accumulated approximately 6,300 BTC through mining operations conducted by Citadel Mining. Arkham Intelligence, a blockchain analytics firm, disclosed these findings in August 2025, establishing the UAE as the sixth-largest state holder of BTC globally.

This development is part of the country’s broader strategy to diversify its economy away from oil. The UAE Royal Group, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, plays a pivotal role. This group has significant stakes in the International Holding Company (IHC), a key conglomerate involved in this diversification strategy. Citadel Mining, majority-owned through IHC, collaborates with Phoenix Group to maintain a vast mining facility.

Details of UAE’s Bitcoin Holdings

Arkham Intelligence reported that Citadel Mining has mined a total of 9,300 BTC, with around 6,300 BTC currently held. These holdings were confirmed through on-chain data and satellite imagery of an Abu Dhabi facility built in 2022. This facility spans 80,000 square meters on Al Reem Island, and its construction was done in partnership with Phoenix Group.

No new grants or institutional fundings have been announced in relation to this mining operation. Instead, the UAE’s BTC holdings stem from state-backed infrastructure leveraging oil-derived energy. This indicates a long-term commitment to digital assets without engaging in market purchases. Furthermore, Phoenix Group holds an additional $3.3 million worth of BTC.

Comparing Global Bitcoin Holdings

The UAE is among several nations with significant BTC holdings acquired through mining. Bhutan holds 11,286 BTC, while El Salvador has accumulated 6,246 BTC. The United States and China lead global sovereign holdings with 198,012 BTC and 194,000 BTC, respectively.

These holdings have not led to immediate market disruptions; rather, they contribute to a narrative of international adoption of Bitcoin. State-held BTC around the world now totals approximately 517,000 BTC, reflecting about 2.4% of the total Bitcoin supply. This positions the UAE among prominent BTC-holding nations, like the United States and the UK.

Partnerships and Economic Strategy

The mining operations in the UAE are a collaborative effort involving multiple entities. Citadel Mining is backed by the UAE Royal Group through its controlling interest in IHC and its industry partnerships. This strategy is aligned with the UAE’s broader goal of economic diversification.

Sheikh Tahnoon bin Zayed Al Nahyan is a significant figure in this initiative, chairing the UAE Royal Group and influencing Abu Dhabi’s economic planning. The strategic pivot from oil revenues to digital assets, including cryptocurrency mining, underscores the UAE’s proactive approach to integrate cutting-edge technology into its economy.

Market Implications and Observations

The UAE’s significant Bitcoin holdings highlight the growing trend of countries investing in digital currencies. However, there have been no changes to the Bitcoin’s total value locked, liquidity shifts, or staking flows as these holdings result from mining rewards. The operations have not yet prompted regulatory responses or policy updates from bodies such as the SEC or the UAE government.

In conclusion, the UAE’s acquisition of Bitcoin through state-backed mining reflects a strategic move towards digital asset integration. As noted by Arkham Intelligence: “The UAE’s $700M BTC holdings are now labeled on Arkham.” This development contributes to the global discourse on digital currencies and their role within national economies.