The United Arab Emirates (UAE) has officially become the world’s fourth-largest government holder of Bitcoin, with reserves valued at around $740 million. These reserves, built through state-backed Bitcoin mining, highlight the country’s commitment to expanding its presence in the digital asset industry.
According to blockchain analytics firm Arkham, the UAE currently controls about 6,333 BTC through Citadel Mining, a publicly traded company under government oversight. The firm is largely owned by the UAE Royal Group through International Holding Company (IHC). Unlike other governments that accumulated Bitcoin mainly from law enforcement seizures, the UAE has built its reserves directly by mining.
This approach places the UAE behind only the United States, China, and the United Kingdom in terms of government Bitcoin holdings. The U.S. holds the largest reserve, worth around $20 billion, while China and the U.K. follow with substantial confiscated assets.
The UAE’s mining operations are supported by Phoenix Group, a leading blockchain and mining infrastructure company. With favorable regulations and strong government backing, Bitcoin mining has grown significantly in the region. Citadel Mining has become central to this effort, focusing on efficiency and scale.
The move also reflects the UAE’s broader strategy to diversify its economy beyond oil, positioning itself as a hub for blockchain technology and digital finance. Abu Dhabi and Dubai have already become centers for crypto exchanges, investment funds, and regulatory initiatives.
By holding Bitcoin mined directly within its borders, the UAE distinguishes itself from countries like El Salvador, which relies on purchases and legal tender adoption. This direct-mining approach signals a unique strategy in building sovereign Bitcoin reserves.
Globally, sovereign and institutional interest in Bitcoin is growing. Brazil has recently expressed plans to establish a national Bitcoin reserve, and the UAE’s move could inspire other Middle Eastern nations to follow. Ultimately, this development strengthens the UAE’s role in the global race for digital asset leadership.
