UAE Mines $700M in Bitcoin, Emerging as a Top Nation-State Holder

The United Arab Emirates (UAE) has amassed approximately $700 million in Bitcoin, primarily through government-backed mining operations, blockchain analytics platform Arkham Intelligence revealed.

In a recent post on X, Arkham identified what it says are the UAE government’s Bitcoin wallets, estimating holdings of roughly 6,300 BTC. The digital assets were mined via Citadel Mining, a firm majority-owned by the UAE government’s International Holding Company (IHC).

“Unlike the US and UK, the UAE’s holdings do not come from police asset seizures but from mining operations with Citadel Mining,” Arkham noted.

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UAE’s Bitcoin Holdings Far Below Speculation

Previous speculation suggested that the UAE might hold as much as 420,000 BTC, worth around $46 billion. Arkham’s analysis shows the actual holdings are significantly lower, totaling about 9,300 BTC mined through Citadel and associated operations.

Mining Ties to Royal Family and Phoenix Group

Arkham detailed that Citadel Mining constructed a Bitcoin mining facility in Abu Dhabi in 2022, in conjunction with Phoenix Group, a publicly listed UAE mining company that operates over 500 MW of mining capacity across five countries. Satellite imagery corroborated the timeline of the mining activity, while on-chain transactions matched official reports.

Citadel Mining is 85% owned by 2pointzero, itself owned by IHC, which is controlled by the UAE Royal Group, a conglomerate owned by Sheikh Tahnoon bin Zayed Al Nahyan, holding a 61% stake.

Phoenix has also publicly embraced its role as an IHC portfolio company, signaling deeper institutional backing. With a Buy rating from H.C. Wainwright & Co., the company is now expanding into AI and High-Performance Computing (HPC), moving beyond traditional mining while contributing significantly to the UAE’s sovereign Bitcoin strategy.

UAE Among Top Nation-State Bitcoin Holders

With its newly reported holdings, the UAE would rank as the sixth-largest nation-state Bitcoin holder, ahead of El Salvador (6,246 BTC) and behind Bhutan (11,286 BTC).

Globally, the United States leads with 198,012 BTC, mostly from criminal seizures, followed by China with 194,000 BTC, and the UK with 61,245 BTC. Overall, sovereign holdings are estimated at 517,000 BTC, roughly 2.4% of Bitcoin’s total supply, valued at over $56 billion.

In comparison, Satoshi Nakamoto, Bitcoin’s pseudonymous creator, is believed to hold 1.096 million BTC, making them the largest single entity. Among corporate holders, Michael Saylor’s Strategy leads with 629,376 BTC (2.9% of the total supply) and continues to grow its treasury.

Implications

The UAE’s measured approach—focusing on mining rather than confiscation—positions the country as a notable but transparent Bitcoin holder in the global crypto landscape. The combination of government backing, royal family involvement, and institutional mining initiatives underscores the nation’s strategic embrace of blockchain and digital assets.