The United Arab Emirates has been identified as one of the largest government-level holders of Bitcoin, with around 6,333 BTC worth over $700 million.
According to blockchain analytics firm Arkham Intelligence, the Bitcoin seizures or second-market purchases, but through a miner called Citadel Mining Company.
Citadel is a majority-owned entity by the Royal Group of the UAE through International Holding Company (IHC). It is placing sovereign capital into one of the fastest-growing digital asset segments.
The latest discovery positions the UAE as the fourth-largest government Bitcoin holder tracked by Arkham.
Mining Powerhouse: Citadel and Phoenix’s Abu Dhabi Facility
Arkham also stated that Citadel Mining has mined nearly 9,300 BTC as of now, with 6,300 BTC now sitting in wallets controlled by the UAE.
The mining has been supported by Citadel’s partnership with Phoenix Group, another publicly listed mining company based in the UAE.
Together with Phoenix Group, Citadel constructed an 80,000 square meter Bitcoin mining facility on Al Reem Island in Abu Dhabi in just six months in 2022.
Arkham found that on-chain activity supported the facility’s timeframe, as well as satellite images taken of the construction.
The aim is to utilize state-backed digital asset innovation to generate long-term wealth.
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Building Reserves Via Mining, Not Seizures
In contrast to Western governments, whose Bitcoin reserves are mostly a result of law enforcement seizures, the UAE reflects a proactive and mining-first approach to Bitcoin reserve accumulation.
It resembles Bhutan’s model, in which a sovereign backs the local energy-mining capability, meaning the use of regional energy resources (such as hydropower), converted to Bitcoin and held as a reserve asset.
Citadel Mining itself is 85% owned by 2pointzero, whose intermediary owner is Integrated Holding Company (IHC), which is 61% owned by the Royal Group, led by Sheikh Tahnoon bin Zayed Al Nahyan.
The sovereign wealth and private sector ownership pattern used in the UAE illustrates how those entities work together to build a sustainable Bitcoin treasury.
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Global Bitcoin Mining Developments
The UAE’s progress in Bitcoin mining coincides with a worldwide geopolitical shift toward accumulating Bitcoin.
In July 2024, while delivering a keynote speech at the Bitcoin Conference in Nashville, U.S. President Donald Trump stated that if re-elected, he would ensure Bitcoin is “mined, minted, and made in the U.S.A.” He also stated that the federal government would never sell its Bitcoin, UnoCrypto reported.
In addressing the conference, Trump touched on a policy shift in which digital assets could play a larger role in national financial plans.
Similarly, in March 2025, we reported that Pakistan announced plans to attract Bitcoin miners by implementing specific electricity tariffs. The plan goes to exploit surplus power and reduce energy costs in-country.
Bhutan’s Sustainable Bitcoin Path and the UAE’s Global Positioning
Bhutan, another small but strategic player, announced in April 2025 that it would be entering into eco-friendly Bitcoin mining with the help of its extensive hydropower resources.
Having previously received more than $1 billion from Bitcoin reserves, part of which was even spent during the pandemic, Bhutan’s model symbolizes sustainability and sovereignty, UnoCrypto reported.
Such developments, along with the favorable mining attitude of the UAE, highlight the potential momentum of countries getting involved with digital assets, not only as a mere speculative portfolio element but also as part of strategic reserves.
The UAE has now firmly injected itself into that leading role in the Middle East with its $700 million Bitcoin reserves and carved out a very unique position for itself in the emerging digital financial landscape.
They thereby signal a shift towards state-backed crypto mining as a pillar of future wealth strategy.
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