Analytics platform Arkham Intelligence has revealed crypto wallets linked to the government of the United Arab Emirates (UAE). According to Arkham, the country ranks fourth among governments by bitcoin holdings with about 6,300 BTC. At the current exchange rate, that is $694 million. All assets were obtained directly through mining rather than confiscations, which is the approach taken by the United States and the United Kingdom.
Who Is Behind the Mining
The mining operation is managed by Citadel Mining, a public company 85% owned by 2pointzero. In turn, 2pointzero is fully controlled by IHC, an investment holding company that is about 61% owned by Royal Group. Royal Group unites the business interests of Sheikh Tahnoon bin Zayed Al Nahyan, a member of the Abu Dhabi royal family.
Industrial-Scale Mining
In 2022, Citadel Mining and public company Phoenix Group built an 80,000 m² data center on Al Reem Island in Abu Dhabi. Construction took six months. Arkham analysts confirmed the beginning of mining by comparing blockchain activity with satellite images of the facility. Transactions between Phoenix and Citadel also matched the figures stated in official documents.
According to Arkham, since the infrastructure launch around 9,300 BTC have been mined, with more than 6,300 BTC still held in Citadel wallets. Phoenix Group is also tracked on Arkham’s platform and holds $3,2 mln in BTC.
Institutional Interest From Abu Dhabi
In March, Abu Dhabi-based investment company MGX Fund Management Limited invested a record $2 bln in Binance, paying the entire deal in stablecoins. MGX obtained a minority stake, and the deal became the largest single investment in the history of the crypto industry.
These facts highlight the growing participation of both government and private entities in the UAE in the crypto market and the strategic focus on mining and technological assets.
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