The UAE Mined $696 Million in Bitcoin, But Didn't Buy It
Date: 2025-08-27 Author: Oliver Abernathy Categories: IN WORLD
According to Arkham's research, the UAE holds 6,333 BTC, which were mined by Citadel, a company majority owned by the state. This allowed the Emirates to take fourth place in the world ranking of countries with the largest amount of bitcoins after the US, UK, and Bhutan.
Unlike the US and UK, where bitcoins often come into state ownership through confiscations, the UAE obtained its coins exclusively through mining. Arkham clarifies that 85% of Citadel's shares are owned by the investment platform 2pointzero, which is fully controlled by the IHC holding company led by Sheikh Tahnoun bin Zayed al Nahyan of the Abu Dhabi royal family.
The main reason why the Emirates prefer to mine Bitcoin instead of buying it is due to the fact that the country's central bank has not recognized BTC and other cryptocurrencies as official means of payment. In contrast, El Salvador, which legalized Bitcoin in 2021, has been actively buying digital assets and currently holds at least 6,280 BTC worth about $691.5 million.
Experts believe that the UAE's strategy is aimed at accumulating cryptocurrency through domestic resources, which allows the state to minimize the risks associated with market volatility and the legal status of Bitcoin. Despite the lack of official recognition, this approach demonstrates the state's interest in developing the crypto industry and supporting local tech companies working with blockchain technologies.
Previously, the UAE government has been cautious about cryptocurrencies, focusing on controlled investments and market regulation. Mined Bitcoins can be used to experiment with blockchain technologies and support national projects without directly entering into market transactions.
Thus, the Emirates’ strategy differs from the models of other countries that actively buy BTC. Combined with government support for technology firms like Citadel, this creates a unique environment for the development of the cryptocurrency sector while reducing financial and legal risks.
This approach demonstrates that countries can use cryptocurrency not only as an investment tool, but also as a technological resource for innovative projects and economic growth. In the future, the Emirates may reconsider its strategy depending on changes in the global cryptocurrency market and domestic regulation.
The total number of coins mined and their current value make the UAE a notable player in the global crypto ecosystem, even if these assets are not used for direct purchases on the market.
