Bitcoin Mining Helps the UAE Achieve $344 Million in Unrealized Profit

TLDR

• The UAE has accumulated $344 million in unrealized profit from its bitcoin mining operations.
• Wallets tied to the UAE Royal Group hold approximately 6,782 BTC, valued at around $450 million.
• The UAE’s mining efforts began in 2022 with Citadel Mining, linked to the Abu Dhabi royal family.
• The country’s mining operation produces about 4.2 BTC per day, reflecting active infrastructure.
• Unlike other miners, the UAE continues to hold the bulk of its mined Bitcoin instead of selling it.

The United Arab Emirates (UAE) holds an unrealized profit of roughly $344 million from its Bitcoin mining operations, according to Arkham on-chain data. Wallets connected to the UAE’s Royal Group control approximately 6,782 BTC, valued at around $450 million. This reflects the country’s ongoing efforts in the crypto mining space, particularly from facilities linked to its royal family.

UAE Sustained Bitcoin Mining Strategy

The UAE’s mining initiative began in 2022 with Citadel Mining, which is associated with Abu Dhabi’s royal family through International Holding Company. The company built large-scale mining facilities on Al Reem Island, marking the start of the UAE’s significant push into the bitcoin mining sector.

As of now, the mining operation produces around 4.2 BTC daily, according to Arkham’s analysis. Despite bitcoin’s price fluctuations, this consistent production reflects the UAE’s robust infrastructure and continued commitment to crypto mining.

Profits and Holdings From UAE’s Bitcoin Mining

The UAE’s wallets now hold 6,782 BTC, worth an estimated $450 million. Arkham’s recent estimates show that the country’s profits from bitcoin mining are deep in the green, largely due to its below-market energy costs. This puts the UAE ahead of many miners who have faced difficulties selling into a weak market.

In August 2023, when bitcoin’s value was higher, Arkham estimated the UAE’s holdings at about $700 million. This drop in valuation is due to recent market changes rather than any major sell-offs. The UAE continues to hold the bulk of its mined bitcoin, effectively using it as a strategic digital reserve.