Most governments that hold Bitcoin got there by accident: seized coins from Silk Road busts, confiscated wallets from fraud cases, or court-ordered forfeitures that sat in cold storage while bureaucrats debated what to do with them. The United Arab Emirates took a different path. According to new data from Arkham Intelligence, the Gulf state's royal-linked mining operations now hold 6,782 BTC worth approximately $453.6 million, with an estimated $344 million in unrealized profit, making the UAE one of the largest sovereign-affiliated Bitcoin accumulators on the planet, and the only one that mined its way there.
As of February 19, 2026, those 37 tracked wallets are still producing roughly 4.2 BTC per day, suggesting the infrastructure is very much online despite Bitcoin's slide from late-2025 highs.
Citadel Mining, Royal Group, and the Abu Dhabi Connection
The Bitcoin stash traces back to Citadel Mining, a UAE-based operation linked to Abu Dhabi's Royal Group through its subsidiary International Holding Company (IHC). IHC, which has a market capitalization exceeding $240 billion, is one of the most valuable publicly listed companies in the Middle East and serves as the conglomerate's primary investment vehicle.
Arkham tracked 37 cryptocurrency wallets connected to Citadel Mining's operations. The key detail: these wallets show a pattern of accumulation rather than liquidation. While many publicly traded Bitcoin miners, particularly in North America, have been forced to sell mined coins to cover operational costs during the prolonged market downturn, the UAE entity has done the opposite.
The strategy is straightforward: convert energy and infrastructure into Bitcoin, then hold. When your parent company controls hundreds of billions in diversified assets, there is no pressure to sell at the bottom to keep the lights on.
250 Megawatts of Immersion-Cooled Mining in the Desert
The UAE's mining footprint is not small-scale or speculative. In 2023, Marathon Digital Holdings (now MARA Holdings) partnered with Abu Dhabi-based Zero Two to develop 250 megawatts of immersion-cooled Bitcoin mining capacity across two facilities. The larger site, a 200 MW installation in Masdar City, Abu Dhabi's sustainability-focused free zone, launched with a formal ribbon-cutting ceremony in October 2023 as reported by CoinDesk. A second 50 MW facility sits in the port zone of Mina Zayed.
Immersion cooling, where mining hardware is submerged in dielectric liquid, is critical in the Gulf's extreme heat. Air-cooled rigs would face severe thermal throttling in ambient temperatures that regularly exceed 45 degrees Celsius. The immersion approach not only solves the cooling problem but increases hardware longevity and energy efficiency, reportedly by 20-30% compared to traditional air-cooled setups.
At 250 MW total capacity and 4.2 BTC daily output, the operation ranks among the top mining deployments globally by committed power, though it sits well below the largest single operators like MARA itself (which controls over 1 GW of capacity across multiple jurisdictions).
The $344 Million Paper Profit, With an Asterisk
Arkham's $344 million unrealized profit figure comes with an important caveat: it excludes energy and operational costs. The calculation compares the estimated acquisition cost (based on Bitcoin's price when each coin was mined) against current market value. Actual profitability depends on electricity rates, hardware depreciation, staffing, cooling costs, and maintenance, none of which are publicly disclosed for the Citadel Mining operation.
However, the UAE's energy economics work strongly in its favor. Abu Dhabi's electricity costs for industrial consumers are among the lowest globally, estimated at $0.03-0.06 per kilowatt-hour depending on the arrangement. For context, many North American miners operate at $0.05-0.08/kWh, and some European operations face rates above $0.10/kWh. The combination of cheap energy, sovereign-scale capital, and no urgency to liquidate creates a cost structure that most publicly traded miners cannot replicate.
Even with energy costs factored in, the operation is almost certainly deep in profit. At $0.05/kWh and 250 MW running continuously since late 2023, total energy costs over roughly 26 months would approximate $230-280 million, still leaving a substantial real profit given the $344 million paper gain excludes those costs only from the Arkham methodology, not from the economic reality.
Where the UAE Sits Among Nation-State Bitcoin Holders
The Arkham data positions the UAE in an increasingly crowded field of sovereign or semi-sovereign Bitcoin holders, but with a unique acquisition strategy.
United States: Holds an estimated 198,000+ BTC, almost entirely from law enforcement seizures (Silk Road, Bitfinex hack recovery, various fraud cases). The US government has periodically auctioned portions of its holdings.
El Salvador: Holds approximately 6,000+ BTC through direct market purchases under President Bukele's Bitcoin legal tender policy. The country's dollar-cost averaging strategy has been alternately praised and criticized depending on Bitcoin's price trajectory.
Bhutan (Druk Holding): Built a mining operation leveraging hydroelectric power, with holdings estimated in the thousands of BTC. Like the UAE, Bhutan chose to mine rather than buy.
UAE (Royal Group/Citadel): 6,782 BTC, acquired exclusively through mining. No seizures, no market purchases. The first Gulf state to build a significant sovereign-affiliated mining reserve.
The distinction matters. Mining BTC means the cost basis is tied to operational expenses rather than market price at the time of acquisition. If the UAE's all-in cost to mine each Bitcoin averages $15,000-20,000 (a reasonable estimate given cheap energy and capital-efficient infrastructure), the current position represents a 3-4x return even after expenses.
What This Means for the Gulf Crypto Ecosystem
The UAE's mining accumulation fits into a broader pattern of the Gulf state positioning itself as the Middle East's primary crypto hub. Dubai and Abu Dhabi have attracted major exchanges (Bybit, OKX, Binance) through favorable regulatory frameworks, free zone licensing, and zero personal income tax. In August 2025, when Bitcoin traded near all-time highs, the UAE's mining holdings were valued at approximately $700 million, according to earlier Arkham estimates.
The fact that the holdings remain largely intact despite a significant drawdown from those highs signals strategic patience. The Royal Group is not trading Bitcoin. It is accumulating a long-duration position that it can afford to hold through multiple market cycles.
For crypto card users and everyday spenders in the UAE, the sovereign-level commitment to Bitcoin infrastructure creates a uniquely supportive regulatory environment. When your government is sitting on nearly half a billion dollars in mined Bitcoin, the policy incentive to maintain crypto-friendly regulation is self-reinforcing.
This also connects to the Abu Dhabi sovereign wealth story reported earlier this month: Mubadala and ADIC combined held over $1 billion in BlackRock's IBIT Bitcoin ETF by the end of 2025. Together with the mining holdings, UAE entities now control well over $1.4 billion in Bitcoin exposure across mining and ETF positions, a dual-pronged strategy that no other nation has replicated at this scale.
FAQ
How did the UAE acquire its Bitcoin holdings? Unlike most governments that hold Bitcoin from law enforcement seizures, the UAE mined its entire 6,782 BTC reserve through Citadel Mining, a company linked to Abu Dhabi's Royal Group via International Holding Company (IHC). The operation runs 250 MW of immersion-cooled mining infrastructure across two Abu Dhabi facilities.
Does the $344 million profit account for energy costs? No. Arkham Intelligence's estimate excludes energy and operational expenses. However, Abu Dhabi's industrial electricity rates ($0.03-0.06/kWh) are among the world's lowest, meaning the operation is likely profitable even after all costs.
How much Bitcoin does the UAE mine daily? Approximately 4.2 BTC per day based on the most recent seven-day average, indicating the mining infrastructure remains fully operational despite recent market weakness.
How does the UAE's Bitcoin reserve compare to other countries? The US leads with 198,000+ BTC (mostly seized), followed by El Salvador with 6,000+ BTC (purchased), and the UAE with 6,782 BTC (mined). Bhutan also holds thousands of BTC from hydroelectric mining. The UAE is the only Gulf state with a significant sovereign-linked mining operation.
Overview
Arkham Intelligence data published on February 19, 2026, reveals that UAE-linked Citadel Mining holds 6,782 BTC worth $453.6 million across 37 tracked wallets, with an estimated $344 million in unrealized profit excluding energy costs. The operation, connected to Abu Dhabi's Royal Group through International Holding Company, produces roughly 4.2 BTC daily from 250 MW of immersion-cooled mining infrastructure built in partnership with MARA Holdings and Zero Two. The holdings remain largely unliquidated, suggesting a long-duration accumulation strategy rather than a trade. Combined with over $1 billion in BlackRock Bitcoin ETF exposure through Abu Dhabi sovereign wealth funds, UAE entities now control more than $1.4 billion in total Bitcoin exposure, the largest dual-strategy (mining plus ETF) sovereign position globally.
Recommended Reading
- Abu Dhabi Sovereign Funds Held Over $1 Billion of BlackRock Bitcoin ETF at the End of 2025
- Eric Trump's American Bitcoin Crosses 6,000 BTC as the Mining Operation Enters the Top 20 Public Holders
- Steak n Shake Reports 18 Percent Same-Store Sales Growth After Accepting Bitcoin as $15 Million Strategic Reserve Takes Shape
