The United Arab Emirates has emerged as one of the top global government Bitcoin holders. Its holdings are worth around $740 million at current market price.
UAE’s State-Backed Bitcoin Mining Pushes Nation Into Global Top Four
According to blockchain analytics firm Arkham, the UAE government now controls approximately 6,333 BTC through Citadel Mining, a public mining company it oversees.
Arkham Intelligence was the first to publicly identify the UAE Bitcoin addresses which it linked to Citadel Mining. Controlling shareholders in the company are owned by the UAE Royal Group predominantly through International Holding Company (IHC).
These holdings position the UAE as the fourth-largest government Bitcoin holder, behind the United States, China, and the United Kingdom. The United States has the largest Bitcoin reserve, estimated at up to $20 billion, followed by China and the United Kingdom.
Unlike countries where the bulk of the BTC is obtained through seizures by law enforcement agencies, the UAE amassed its reserves by directly mining the cryptocurrency. Such mining activities were developed together with Phoenix Group, a top mining and blockchain infrastructure company.
The decision indicates that UAE is putting in the efforts to make its mark in the digital assets industry. By storing Bitcoin that has been mined and not obtaining it in the markets or confiscated, the UAE is taking a different route concerning its cryptocurrency reserves. The plan lies in line with its wider aims of diversifying its economy.
Bitcoin mining in the UAE has been on the rise courtesy of favorable regulation as well as strategic tie ups. Citadel Mining, a company backed by the government, has become a cornerstone of this effort, providing both energy efficiency and operational scale. The UAE’s direct involvement also contrasts with El Salvador’s approach, which is focused on purchases and legal tender adoption.
UAE BTC Treasury Strengthens Role in Global Digital Asset Race
The news comes at a time when institutional and sovereign interest in Bitcoin is accelerating. U.S. authorities are still the biggest holders of BTC compared to any other government. They have seized over 200,000 BTC in criminal cases. Even though China has prohibited crypto trading, it still retains large deposits of confiscated Bitcoin, too.
The action of UAE may encourage other Middle Eastern states to consider Bitcoin mining and Bitcoin treasuries. This trend isn’t limited to the Middle East. Brazil recently announced plans to explore a strategic Bitcoin reserve.
The region has been seeking to position itself as a center of blockchain innovation. Both Abu Dhabi and Dubai host major exchanges, funds, and regulatory initiatives. This push towards Bitcoin treasury by the UAE points to a broader vision that could help overturn the definition of sovereign digital reserves.
The move means the UAE is now on a list of governments that have a high Bitcoin exposure. Besides, these holdings make it a more crypto-forward country.
Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
He holds a degree in Geophysics from OAU, Nigeria. When he’s not writing, he loves watching soccer and reading educative journals.
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Source: https://coingape.com/uae-becomes-fourth-largest-government-bitcoin-reserve/