While the Abu Dhabi Investment Council was busy buying BlackRock’s ETF, another arm of the emirate’s power structure was getting its hands dirty at the source.
The Royal Group, a conglomerate closely linked to the ruling family, has emerged as one of the Middle East’s largest sovereign-linked Bitcoin holders.
Onchain data from Arkham Intelligence reveals that the group controls approximately 6,450 BTC, worth roughly $594mn at current prices.
The holdings are tied to Citadel Mining, the conglomerate’s majority-owned mining subsidiary. The sheer scale of the position highlights how Abu Dhabi’s most powerful business networks are embedding Bitcoin directly on their balance sheets, deepening the Gulf’s rapid pivot into digital assets.
Industrial-Scale Accumulation
The cluster of 37 addresses linked to Citadel Mining reflects years of accumulation through large-scale mining operations developed quietly across the UAE.
This strategy fits seamlessly with Abu Dhabi’s broader push to build domestic capacity in both digital infrastructure and energy-intensive industries. By utilizing subsidised power, sovereign financing, and regulatory clarity, the emirate has successfully enticed miners and exchanges to establish regional bases.
Unlike the passive allocation via ETFs seen with Mubadala and ADIC, Royal Group has adopted a production-based model. This brings Bitcoin directly into treasury reserves, reducing reliance on external markets and giving Abu Dhabi strategic control over the asset in a way that aligns with national industrial-policy goals.
Sovereign Strategy
Mining in the Gulf has grown significantly over the past three years as the UAE positions itself as a hub for clean and cost-efficient compute. Citadel Mining’s output suggests the UAE intends to build sovereign mining capacity that rivals primary commercial operations in North America.
The accumulation places the UAE within a small circle of states and state-adjacent institutions that hold meaningful Bitcoin reserves. While El Salvador remains the only nation with publicly declared government purchases, the UAE’s approach differs by treating mining as a long-term industrial investment. It secures new revenue streams while supporting national technology goals.
With institutional flows increasingly driving market structure, onchain evidence of sovereign accumulation is viewed by many as a sign that Bitcoin is moving deeper into global reserve portfolios, particularly in regions seeking diversification away from traditional dollar-based instruments.
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