• Bitcoin (BTC) mined by the UAE’s state-backed operation totals $700 million, setting a new global trend.
• Citadel’s mining operation makes the UAE the fourth-largest government holder of Bitcoin globally.
• The UAE’s long-term strategy holds 6,300 BTC, challenging traditional government Bitcoin acquisition methods.

The United Arab Emirates (UAE) has acquired a stash of Bitcoin valued at about $700 million as part of an unusual strategy. The UAE’s strategy did not involve buying or confiscating Bitcoin like other governments. Rather, it was mined by a state-supported operation throughout the UAE. This represents a novel global trend in the accumulation of Bitcoin.

Arkham, a blockchain intelligence company, started to track a cluster of Bitcoin containing about $700 million on August 25. The addresses were traced down to the UAE government. 

Source: X

Nevertheless, these assets were not acquired through an open market transaction. They were mined by Citadel, a company extensively owned by a conglomerate associated with the Abu Dhabi royal family. This is the first government-initiated Bitcoin mining operation.

Source: X

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Bitcoin Mining on Al Reem Island Shows UAE’s Long-Term Strategy

The mining facility that was constructed to handle the mine operation took six months. The plant is based on Al Reem Island, and it began operation in 2022. The satellite survey corroborated the mining operations with the moving real-life location of the facility, an attribute that suggests that the location was engaged in the mining of BTC by the UAE.

This mining facility has generated approximately 9,300 BTC since its launch. The UAE government keeps at least 6,300 Bitcoin out of this total. The rest of the BTC is not sold yet, which suggests that rather than selling its wealth as quickly as possible, the UAE is taking a more long-term approach. This plan is opposed to the usual approach of governments selling BTC shortly after purchasing.

Source: X

UAE Becomes a Major BTC Holder Through Strategic Mining

The plan has made the UAE government one of the biggest users of BTC. The UAE has ranked as the fourth government to hold BTC after the United States of America, China, and the United Kingdom. This puts the UAE at the forefront of countries, such as El Salvador, that also hold BTC but use mining on a reduced scale.

As per BitcoinTreasuries.Net, 12 institutions in the government own 526,353 BTC, worth more than 59 billion dollars. The US ranks first at 198,021 BTC, closely followed by China at 190,000 BTC and the United Kingdom at 61,245 BTC. Establishing the approach to BTC mining in the UAE is a strong driver to shake the old concepts of acquiring digital assets.

The UAE’s approach to mining establishes a new precedent on how governments may obtain BTC. It provides a distinct framework that other countries may be inspired to take before trying to assemble their digital reserve assets.

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