UAE Unearths $700 Million in Bitcoin on State Addresses, Positions Itself as Crypto Mining Powerhouse

UAE's Bitcoin Fortune Uncovered

The United Arab Emirates has emerged as a significant player in the cryptocurrency landscape, with a staggering $700 million in Bitcoin discovered on state-affiliated addresses. This revelation propels the UAE into the fourth position globally for national Bitcoin holdings, rivaling even the holdings of nations like Bhutan. The groundbreaking analysis was conducted by Arkham, a prominent blockchain intelligence platform, which meticulously identified the digital wallets housing these substantial assets.

From Mining Rigs to Crypto Riches

Unlike the common narrative of crypto fortunes amassed through seized assets, the UAE's Bitcoin reserves stem directly from legitimate and large-scale mining operations. The source of these digital coins is Citadel, a publicly traded mining company where the influential UAE Royal Group holds a controlling stake. This distinction is crucial, highlighting a proactive approach to wealth generation in the digital asset space rather than passive accumulation through law enforcement actions. Citadel Mining has been instrumental in this endeavor, having mined approximately 9,300 BTC, with a significant portion, at least 6,300 BTC, still held in their reserves.

A Financial Powerhouse Behind the Scenes

The intricate web of ownership reveals a powerful financial entity at the core of these operations. Citadel Mining is predominantly owned by 2pointzero, a company that, in turn, is fully controlled by IHC (International Holding Company). IHC stands as a titan in the Middle Eastern corporate world – a diversified conglomerate boasting an impressive portfolio of over 1,300 subsidiaries across critical sectors like finance, healthcare, real estate, and technology. Its sheer scale and influence make it the most valuable public holding company in the region. Ultimately, the reins of IHC are held by the Royal Group, a vast conglomerate under the ownership of Sheikh Tahnoon bin Zayed Al Nahyan. The Royal Group's substantial influence is underscored by its 61% ownership of IHC, demonstrating a clear strategic alignment and control over these burgeoning digital asset ventures.

Strategic Alliances and Ambitious Expansion

The UAE's commitment to crypto mining is further solidified by a significant infrastructure project. In 2022, Citadel, in collaboration with Phoenix Group (another significant UAE-based public mining company) and the government-backed IHC, inaugurated a sprawling 80,000-square-meter Bitcoin mining facility on Al Reem Island in Abu Dhabi. This strategic alliance not only expands their mining capacity but also positions the UAE as a hub for digital asset innovation and production. Phoenix Group itself is a notable holder of digital assets, with approximately $3.2 million in BTC within its own reserves, further emphasizing the collective strength and ambition of these entities in the cryptocurrency ecosystem.