Arkham reveals UAE built massive Bitcoin reserve through state mining

The United Arab Emirates has quietly built one of the world’s largest sovereign Bitcoin reserves by mining the asset domestically rather than buying it.

Blockchain analytics firm Arkham Intelligence reported that wallets linked to UAE government entities hold around 6,300 Bitcoin, valued at roughly $700 million.

The findings show how the country used state-linked mining infrastructure to accumulate digital assets at scale.

This approach marks a departure from the common sovereign crypto strategy of acquiring Bitcoin through confiscations or market purchases.

It places the UAE among the few nations generating reserves directly from mining operations.

Arkham tracks state wallets

Arkham’s on-chain research identified Bitcoin held in wallets associated with UAE government-linked organisations.

The firm estimates these wallets contain approximately 6,300 Bitcoin, placing the UAE among the largest sovereign Bitcoin holders globally.

These reserves were built primarily through mining activity rather than purchases or seizures.

Arkham found that state-linked operations mined about 9,300 Bitcoin in total.

While around 6,300 Bitcoin remain in government-linked wallets, the rest have been distributed or held by related entities involved in the broader mining ecosystem.

The findings position the UAE close to sixth among sovereign Bitcoin holders based on publicly identified wallets.

Citadel Mining drives accumulation

A key contributor to this reserve is Citadel Mining, a publicly listed Bitcoin mining company majority-owned by International Holding Company.

This Abu Dhabi-based conglomerate is linked to the UAE’s Royal Group, connecting the mining operation directly to state-backed entities.

Citadel Mining played a central role in converting infrastructure investment into digital asset production.

Instead of acquiring Bitcoin through exchanges, the UAE relied on mining operations to build its holdings.

Associated firms such as Phoenix Group have also participated in the mining and distribution of mined Bitcoin.

These organisations form part of a network that supports the UAE’s broader digital asset infrastructure.

Abu Dhabi facility confirmed

Arkham’s analysis combined blockchain data with satellite imagery to identify a major mining facility in Abu Dhabi.

The facility was established in 2022 through a partnership between Citadel Mining and Phoenix Group.

This site enabled large-scale mining, allowing the UAE to generate Bitcoin internally.

Mining infrastructure provides a continuous mechanism to produce digital assets, rather than relying on unpredictable enforcement actions or market conditions.

The Abu Dhabi operation represents a direct investment in crypto production capabilities, reflecting a strategic approach to building sovereign reserves.

Mining shapes crypto strategy

The UAE’s Bitcoin reserve differs from those held by other governments, such as the US and UK, whose holdings largely originate from law enforcement seizures.

The UAE instead generated its reserves through industrial mining activity.

This production-based approach allows sovereign entities to accumulate Bitcoin without purchasing it on open markets.

Arkham’s findings highlight how sovereign governments are increasingly participating in crypto infrastructure.