A recent report by Arkham Intelligence, published on August 25th, reveals that the United Arab Emirates possesses approximately $700 million worth of Bitcoin.
These Bitcoin assets are associated with Citadel Mining, a company believed to have ties to the UAE government. Arkham’s investigation indicates that the cryptocurrency is distributed across multiple wallet addresses identified as belonging to the state, with a total of roughly 6,300 BTC.
Citadel Mining inaugurated a Bitcoin mining operation in Abu Dhabi back in 2022. This venture was a collaborative effort with Phoenix Group, a publicly traded mining corporation in the UAE, as well as the International Holding Company (IHC).
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Arkham’s analysis suggests a correlation between the flow of newly mined Bitcoin on the blockchain and the establishment and commencement of operations at the Abu Dhabi facility. The company verified this by combining on-chain data analysis with satellite imagery of the mining site.
Further strengthening the link, Arkham reports that transactions between Phoenix Group and Citadel Mining mirrored amounts detailed in official company documentation. This consistency provides additional evidence connecting the wallets to the government-supported mining venture.
While the identified government-linked wallets currently hold approximately 6,300 BTC, Arkham estimates that Citadel Mining has mined nearly 9,300 BTC in total.
The ownership structure of Citadel Mining is complex, involving multiple layers. The company is 85% owned by 2pointzero, which, in turn, is controlled by IHC. A 61% stake in IHC is held by Royal Group, which is connected to Sheikh Tahnoon bin Zayed Al Nahyan, a prominent member of Abu Dhabi’s ruling family.
In other news, Tim Draper, a founding partner at Draper Associates, recently shared his perspectives on the function of altcoins within the Bitcoin ecosystem. Interested in learning more? Read the full story.