Binance CZ Breaks Silence as UAE Bitcoin Mining Profit Tops $450M

TL;DR

• UAE mined over $453M in Bitcoin through state-linked mining operations.

• CZ says he supported UAE’s move into Bitcoin mining years before growth.

• UAE holds about 6,300 BTC mined by Citadel Mining and partners.

• New research shows the UAE is now a major sovereign Bitcoin holder.

Binance founder Changpeng “CZ” Zhao has confirmed that he played a role in the United Arab Emirates’ expanding Bitcoin mining sector. His comments followed new data showing the country has generated more than $450 million worth of Bitcoin through state-linked operations. The report sparked new interest in how the Gulf nation built one of the world’s largest sovereign Bitcoin positions through mining rather than market purchases or asset seizures.

CZ responded to a social media post summarizing the findings and said he had long encouraged the UAE to explore Bitcoin mining. He also noted that his previous work with regional leaders helped support early discussions about digital asset infrastructure. His remarks align with past engagements in the region during his tenure as Binance CEO.

UAE Bitcoin Mining Output Surpasses $450 Million

Arkham Intelligence reported that the UAE has mined about $453.6 million in Bitcoin, mainly through Citadel Mining, a firm linked to International Holding Company. The company’s mining output has been steady for several years, and the report said the country currently holds roughly $344 million in unrealized profit when energy costs are excluded.

The data shows that the UAE kept most of the mined Bitcoin and recorded limited outflows over the past four months. Analysts say this storage strategy aligns with the view of Bitcoin as a long-term reserve asset. Commentators added that UAE officials see Bitcoin as a store of value and a strategic component of a national diversification plan.

Arkham researchers said state-controlled wallets hold about 6,300 BTC, valued at close to $700 million. The estimate places the UAE among the largest known sovereign Bitcoin holders that acquired assets through mining rather than enforcement actions.

Government-Linked Mining Infrastructure Grows

Satellite images and blockchain activity reviewed by analysts show that Citadel Mining built a large mining facility in Abu Dhabi in 2022 with Phoenix Group. The location was developed to expand digital asset infrastructure and use local energy resources for high-performance computing tasks. The researchers said the facility played a central role in the country’s rise as a major miner.

The UAE is in a unique position among governments because it directly engages in mining operations through majority ownership in Citadel Mining. This differs from countries such as the United States or the United Kingdom, where most government Bitcoin reserves come from criminal seizures. Analysts say the UAE’s mining-based approach gives the government more control over production and acquisition costs.

Industry observers see the strategy as part of a broader national initiative to diversify beyond oil and build a reputation as a financial innovation center. The UAE has invested in blockchain projects, digital asset regulation, and fintech partnerships over several years. Officials say these efforts support economic resilience and attract global firms.

Global Comparison Shows Different Approaches to Bitcoin

Countries have taken varied paths as they expand their exposure to Bitcoin. Bhutan invested heavily in the asset in 2025, accumulating over $1.2 billion at one point. However, recent reports indicate that Bhutan has been selling a portion of its reserves. Analysts say the sales may be linked to changes in mining costs and price trends.

By contrast, the UAE has largely held its mined Bitcoin and continues to increase its production capacity. This approach gives the government a steady source of Bitcoin while also supporting local companies involved in mining and infrastructure development. Experts say the strategy may reduce reliance on spot market purchases and reduce exposure to price swings.

Bitcoin traded near $66,507 at the time of writing. The coin has moved within a narrow range in recent days as traders watch global macro trends, miner activity, and sovereign accumulation. Market analysts say sovereign involvement can influence long-term supply and demand patterns.

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