The UAE Bitcoin mining sector received new global attention following the release of a major update by Arkham via its official X account. The firm indicated that the country had mined around $453.6 million worth of Bitcoin via its partner, Citadel.
The data indicates that the government continues to hold most of the mined Bitcoin. The last time there was significant outflow from the country was four months ago. Excluding the cost of energy, the country has around $344 million in unrealized profits.
This shows the evolution of the UAE Bitcoin mining sector into a strategic reserve phenomenon in the overall digital asset space.
Source: X
The UAE started expanding its mining sector in 2022. The country saw the establishment of extensive mining facilities by Citadel Mining, which is affiliated with the royal family in Abu Dhabi. The facilities were built on Al Reem Island. This marked a strategic move into industrial Bitcoin mining at the sovereign level.
The sector experienced further expansion in 2023 via a joint venture between Marathon Digital Holdings and Zero Two. The two partners deployed 250 megawatts of immersion-cooled mining capacity within the country. This is one of the largest disclosed mining capacities in the region at the time.
Updated Data Lowers UAE’s 2025 Bitcoin Mining Estimates
The new dataset from Arkham reduces its estimate for August 2025. This estimate is previously around $700 million worth of mined Bitcoin. Bitcoin is trading at a higher price at that time. The firm also indicated around 9,300 BTC mined and around 6,300 BTC held.
The current figures indicate the UAE Royal Group has 6,782 BTC. This is only equivalent to 0.03% of the circulating supply of Bitcoin. The state still holds the funds and has not yet sold them.
Other countries are also mining the cryptocurrency. Bhutan started mining in 2019 through Druk Holding & Investments. They used their hydroelectric power to power their mining machines. Bhutan’s reserves eventually exceeded $1 billion at peak market value.
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Arkham revealed Bhutan’s government-linked addresses in September 2024. They had over 13,000 BTC. This was a confirmation of the mining activity over the years, which had received little public disclosure.
Some countries are also holding the cryptocurrency through confiscation rather than mining. The United States holds the highest amount of seized Bitcoin. They have 328,000 BTC valued at $22 billion. This is equivalent to 1.64% of the total circulating supply.
Global Growth in Government-Seized Bitcoin
The United States seized funds from the Bitfinex hack and the Silk Road marketplace and confiscated cryptocurrency from James Zhong’s account. According to Arkham, the government has recently seized another 127,000 BTC from the LuBian Hacker.
The United Kingdom is the second-largest sovereign holder of the seized funds. They have 61,000 BTC valued at $4 billion. In January 2021, the police gained access to some of the funds following their investigation into Jian Wen and Zhimin Qian.
Other countries are also holding the seized funds. Ukraine received $22.8 million in donations during the war against Russia. Germany seized 50,000 BTC in January 2024 from a movie piracy operation. They later sold the entire amount.
The UAE Bitcoin mining activities point to a sovereign strategy based on infrastructure, energy, and reserve growth. The data from Arkham indicates a solid unrealized gain and low outflows, placing the UAE in an emerging position in terms of sovereign crypto activities.
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