How UAE royals secretly built a $740M bitcoin stash

Blockchain analysis platform Arkham Intelligence identified the UAE as the 4th largest government holding Bitcoin after the US, China, and the UK. According to the platform, the UAE owns 6,333 coins worth more than $700 million.

UAE’s Bitcoin holdings tied to Royal Group-Controlled Citadel

The source of the UAE’s Bitcoin holdings is mining operations driven by Citadel, a public crypto mining company. Arkham mentions that, compared to a number of other governments, like the US and UK, the UAE’s Bitcoin holdings don’t come from police asset seizures. The majority of Citadel, the main contributor to the government’s BTC stash, is owned by the UAE Royal Group, founded by Sheikh Tahnoon bin Zayed Al Nahyan from Abu Dhabi’s royal family. 

Citadel Project in Abu Dhabi is the region’s largest crypto-mining facility managed by Phoenix Group, one of the 10 largest Bitcoin miners in the world. In 2024, International Holding Company (IHC), headed by the Royal Group, launched 2PointZero, a tech-focused investment platform. 85% of Citadel Mining is owned by 2PointZero. Citadel’s crypto-mining facility, founded on Al Reem Island in Abu Dhabi in 2022, spans a total of 80,000 sqm and was built in 6 months. 

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How the UAE is building its crypto presence

The UAE is building its presence in the global crypto market. Instead of restricting digital assets, the government has introduced clear regulations for businesses. In 2022, Dubai set up the Virtual Assets Regulatory Authority (VARA) to oversee crypto operations and provide regulatory clarity. The country also offers crypto-friendly, tax-free zones, making it easier for companies to operate.

UAE-linked entities are also active investors in crypto. Abu Dhabi’s sovereign wealth fund has invested in Bitcoin products, including ETFs. With clear rules, supportive zones, and strategic investments, the UAE has become an attractive hub for crypto.

Where the UAE stands in government Bitcoin holdings

Countries hold Bitcoin for different reasons. Some have taken it through criminal seizures, while others have mined or bought it directly. El Salvador and the Central African Republic are the only nations that have adopted Bitcoin as legal tender. 

According to Arkham data, El Salvador has built up 6,272 BTC, worth about $730 million, through direct purchases and a plan to buy one Bitcoin every day from 2022. Bhutan has focused on mining, using cheap hydropower from its rivers, and holds almost 10,000 BTC valued at over $1.1 billion. Ukraine is also notable for raising over $22 million in Bitcoin donations since the war with Russia in 2022 and reporting large BTC holdings among public officials.

The largest government holdings mostly come from seizures. The United States leads with around 198,000 BTC worth more than $22.6 billion, taken from cases like the Silk Road and Bitfinex hacks. The UK holds about 61,000 BTC from a fraud case, while China confiscated nearly 195,000 BTC in 2020 from the PlusToken scheme.