The United Arab Emirates (UAE) has emerged as the fourth-largest holder of bitcoin, with an estimated value of around $740 million.
UAE's Bitcoin Reserves and Citadel Mining
According to the blockchain analytics firm Arkham, the UAE controls about 6,333 BTC through Citadel Mining, a government-backed public mining company. This places the nation fourth in global rankings of bitcoin holdings, trailing only the United States, China, and the United Kingdom.
Strategy of Direct Mining
Unlike many countries that accumulate bitcoins primarily through law enforcement seizures, the UAE has built its reserves through direct mining. This has been facilitated by a project in partnership with Phoenix Group, a major mining and blockchain infrastructure firm. This strategy is part of the UAE's overall objective to diversify its economy and establish itself as a significant player in the digital assets space.
UAE's Crypto-Friendly Approach
The UAE's actions reflect a growing institutional and sovereign appetite for bitcoin. While the U.S. has accumulated over 200,000 BTC due to seizures and China holds significant seized reserves, the UAE's strategy has focused on mining instead of market purchases. This positions the UAE as a crypto-friendly state and may encourage other countries in the Middle East to consider bitcoin mining as a treasury strategy.
The UAE's initiatives have the potential to reshape the perception of cryptocurrencies in the region and solidify the country's position as a key player in the global digital asset marketplace.
