Tag: holding

  • UAE identified as holding $700M in Bitcoin from mining operations

    UAE identified as holding $700M in Bitcoin from mining operations

    AI generated image for Bitcoin in a vault

    • According to blockchain analytics platform Arkham Intelligence, the United Arab Emirates holds about $700 million in Bitcoin.
    • Arkham traced the mining activity to Citadel Mining, which it said was established in Abu Dhabi in 2022.
    • Based on Arkham’s report and estimates from BitBo, the UAE ranks sixth among sovereign Bitcoin holders.

    The United Arab Emirates holds about $700 million in Bitcoin, primarily accumulated from mining operations, according to blockchain analytics platform Arkham Intelligence.

    In a post on X on Monday, Arkham said it had become one of the first to publicly identify the UAE government’s wallets, estimating that they contain about 6,300 Bitcoin.

    The holdings were attributed to mining conducted through Citadel Mining, a company majority owned by the government-backed International Holding Company (IHC).

    Arkham noted that, unlike the United States and the United Kingdom, where national Bitcoin holdings have largely come from police asset seizures, the UAE’s reserves are linked directly to mining.

    Speculation around the country’s Bitcoin exposure had previously suggested much larger reserves.

    Market rumors often placed the UAE’s holdings at around 420,000 Bitcoin, worth roughly $46 billion at current prices, and allegedly sourced from seizures of illicit activity.

    Those estimates, if accurate, would have positioned the UAE as the largest sovereign Bitcoin holder globally.

    Arkham’s findings, however, put the figure substantially lower.

    Mining operations tied to royal-linked conglomerates

    Arkham traced the mining activity to Citadel Mining, which it said was established in Abu Dhabi in 2022.

    The firm reported that the venture was developed in collaboration with Phoenix Group, a publicly listed UAE mining company, and the IHC.

    Arkham added that it corroborated the timeline of on-chain mining activity with satellite imagery showing the construction of the facility.

    The company said on-chain transactions between Phoenix and Citadel also matched figures disclosed in official documents.

    Based on its analysis, Arkham estimated that Citadel Mining has mined a total of 9,300 Bitcoin to date.

    Citadel Mining is 85% owned by 2pointzero, a holding entity controlled by IHC.

    The IHC itself is majority owned by the UAE Royal Group, a conglomerate led by Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi’s royal family, which holds a 61% stake.

    How UAE compares with other nation-states

    Based on Arkham’s report and estimates from BitBo, the UAE ranks sixth among sovereign Bitcoin holders.

    Its reserves place it behind Bhutan, which holds 11,286 Bitcoin, and ahead of El Salvador, which holds 6,246.

    The United States remains the largest holder with 198,012 Bitcoin, most of it originating from law enforcement seizures.

    China follows with 194,000, mainly stemming from its 2019 crackdown on the PlusToken scam, while the UK ranks third with 61,245.

    BitBo estimates that sovereign entities collectively hold about 517,000 Bitcoin, or 2.4% of the total circulating supply, with a total value exceeding $56 billion.

    In the corporate sector, Michael Saylor’s firm MicroStrategy is cited as the largest institutional holder, with a treasury of 629,376 Bitcoin, representing about 2.9% of the supply.

    The company continues to expand its Bitcoin reserves.

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  • Strategy hit with lawsuit as Bitcoin holding tops $59B

    Strategy hit with lawsuit as Bitcoin holding tops $59B

    Strategy hit with lawsuit

    • The company’s total Bitcoin holdings now stand at 576,230 BTC.
    • Average cost basis updated to $69,726 per Bitcoin.
    • The lawsuit was filed by Pomerantz LLP in Virginia over alleged investor deception.

    MicroStrategy, now rebranded as Strategy, is once again making waves across financial markets.

    The company, known for holding the largest corporate stash of Bitcoin, is facing a class action lawsuit alleging misleading accounting practices.

    Despite this, it has continued buying more Bitcoin, bringing its total to 576,230 BTC, worth approximately $59 billion.

    $764.9M BTC purchase follows lawsuit filing

    On 19 May 2025, Strategy disclosed it had acquired an additional 7,390 BTC for $764.9 million.

    The average price paid was $103,498 per coin.

    The acquisition was financed via an at-the-market (ATM) equity offering and the issuance of Series A STRK preferred stock.

    This brings its total holdings to 576,230 BTC at a new average cost of $69,726.

    The announcement came just after the firm was hit with a lawsuit filed in the Eastern District of Virginia.

    The legal action, initiated by Pomerantz LLP, names both the company and top executives, accusing them of failing to alert investors about the risks posed by updated Bitcoin accounting rules under ASU 2023-08.

    The new standard requires firms to reflect the fair market value of Bitcoin on their balance sheets.

    According to the lawsuit, Strategy downplayed the impact this would have on its financial statements, allegedly resulting in a $5.91 billion fair-value loss that wasn’t adequately communicated to shareholders.

    Use of non-GAAP metrics under scrutiny

    The complaint also highlights Strategy’s use of proprietary, non-GAAP metrics such as “BTC Yield” and “BTC $ Gain”.

    The plaintiffs argue these terms were not standard financial indicators and may have presented an inflated view of the company’s profitability.

    This approach appeared to unravel on 7 April, when the $5.9 billion impairment loss became public.

    MSTR shares fell 8.67 percent that day. By 1 May, earnings reports confirmed the blow to the company’s books, and investors responded negatively.

    While the firm’s defenders point to long-term Bitcoin appreciation and innovation in digital asset strategy, the lawsuit raises questions about regulatory compliance and transparency.

    Accounting experts have noted that non-GAAP metrics must be used carefully, especially when they contradict or obscure established accounting principles.

    No strategic shift despite legal risks

    Despite the financial hit and legal threats, Strategy has shown no sign of changing course.

    Its May filing suggests the firm remains committed to accumulating more Bitcoin, with its latest purchase representing one of the largest single-month acquisitions this year.

    Michael Saylor, the company’s chairman, has consistently positioned Bitcoin as “digital gold” and a long-term asset class.

    His earlier comment — “My formula for success is rise early, work late, and buy Bitcoin” — continues to define the company’s public stance.

    However, the legal case could reshape how other corporations approach digital asset reporting.

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