The United Arab Emirates (UAE) has emerged as a significant player in the Bitcoin ecosystem, with its Royal Group-linked mining operations accumulating substantial unrealized profits. According to Arkham Intelligence, these operations are sitting on approximately $344 million in unrealized profit, excluding energy costs. Arkham attributed around 6,782 BTC to wallets connected to UAE royal-linked mining activities, valuing these holdings at roughly $453.6 million at the time of their analysis. This implied profit represents the difference between current Bitcoin prices and estimated production costs, though it's important to note that electricity and operational expenses are not factored into this specific figure.

Arkham’s onchain data further highlights a consistent pace of mining output from the UAE. Over a recent seven-day period, the UAE-linked wallets produced approximately 4.2 BTC per day, indicating robust, industrial-scale operations. A distinctive aspect of the UAE's strategy, as observed by the analytics firm, is its tendency to retain most of its self-mined Bitcoin. The last recorded outflow from these particular wallets was approximately four months prior, suggesting a long-term holding approach. This contrasts sharply with many other governments that hold large Bitcoin positions, such as the United States and the United Kingdom, whose significant reserves are predominantly tied to law enforcement seizures rather than domestic mining.

The UAE's strategic push into Bitcoin mining dates back to 2022. During this period, Citadel Mining, an entity with links to Abu Dhabi’s royal family, initiated large-scale operations on Al Reem Island. This move was part of a broader regional initiative to attract digital asset infrastructure, bolstered by capital from state-connected firms. Further solidifying its ambition, 2023 saw Marathon Digital Holdings and Abu Dhabi-based Zero Two announce a joint venture. This collaboration aimed to develop an impressive 250 megawatts of immersion-cooled Bitcoin mining capacity within the UAE, marking it as one of the largest disclosed industrial mining deployments in the region and underscoring the country's goal to become a central hub for crypto infrastructure.

Arkham Intelligence's latest estimate revises an earlier projection from August 2025. The previous estimate had attributed approximately $700 million in mined Bitcoin to the UAE during a period of higher prices, with an estimated 9,300 BTC mined and about 6,300 BTC held, ranking it among the top sovereign entities. Under the updated figures, the UAE's current holdings represent approximately 0.03% of Bitcoin’s total supply.

Beyond direct mining, Abu Dhabi’s sovereign wealth funds are also increasing their engagement with Bitcoin through exchange-traded funds (ETFs). Recent disclosures reveal a significant rise in their exposure to BlackRock’s iShares Bitcoin Trust (IBIT). As of December 31, they reported ownership of 12.7 million shares, valued at around $630.6 million. This marks a substantial 46% increase from the 8.7 million shares reported at the end of September. Mubadala, a prominent sovereign wealth fund overseeing over $330 billion in assets, manages a global portfolio and aims to generate long-term returns for the Abu Dhabi government while supporting economic diversification. Similarly, Al Warda Investments, another Abu Dhabi-based firm part of the Abu Dhabi Investment Council under Mubadala, also boosted its IBIT position in Q4 2025 to 8.22 million shares, up from 7.96 million in Q3. This growing allocation to IBIT by a firm traditionally focused on private investments is particularly notable for the region, signaling a broader shift towards public Bitcoin ETF exposure. Cumulatively, Abu Dhabi investment vehicles held more than 20 million IBIT shares by the end of last year, with a combined value exceeding $1.1 billion. For comparative context, Arkham noted that the United States remains the largest sovereign Bitcoin holder, possessing approximately 328,000 BTC valued at $22 billion, primarily derived from law enforcement seizures such as those from the Bitfinex hack and Silk Road investigations. At the time of writing, Bitcoin was trading just below $66,000.