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UAE Government Mines $700 Million Worth of Bitcoin Through Citadel Operations
UAE Government Bitcoin Holdings – The United Arab Emirates has emerged as a major player in the Bitcoin space, holding approximately $700 million worth of Bitcoin through government-backed mining operations, according to blockchain analytics firm Arkham Intelligence.
Government Mining Operations Behind Holdings
Unlike other nations that accumulated Bitcoin through criminal seizures, the UAE’s 6,300 Bitcoin holdings come from legitimate mining activities. Arkham Intelligence announced Monday that it successfully identified the UAE government’s wallet addresses for the first time, revealing the true scope of the nation’s cryptocurrency reserves.
The Bitcoin was mined through Citadel Mining, a company majority-owned by the UAE government’s International Holding Company (IHC). This marks a significant departure from how countries like the United States and United Kingdom built their Bitcoin reserves through police asset seizures.
Royal Family Connections to Mining Operations
The mining operation has strong ties to Abu Dhabi’s royal family. Citadel Mining is 85% owned by holding company 2pointzero, which connects to the IHC. The UAE Royal Group, controlled by Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi’s royal family, maintains a 61% stake in IHC.
Arkham revealed that Citadel, working with Phoenix Group and IHC, constructed a Bitcoin mining facility in Abu Dhabi in 2022. The firm used satellite imagery to verify the timeline, stating that “on-chain transactions between Phoenix and Citadel match amounts disclosed in official reports.”
UAE Ranks Sixth in Global Bitcoin Holdings
The confirmed holdings place the UAE as the sixth-largest Bitcoin holder among nation-states. This position sits behind Bhutan’s 11,286 Bitcoin and ahead of El Salvador’s 6,246 Bitcoin, according to BitBo data.
The United States remains the largest government Bitcoin holder with 198,012 Bitcoin, followed by China with 194,000 Bitcoin. Arkham estimates the UAE has mined a total of 9,300 Bitcoin through Citadel’s operations.
The revelation debunks earlier speculation suggesting the UAE held around 420,000 Bitcoin worth $46 billion, which would have made it the world’s largest sovereign Bitcoin holder.
