Tag: operations

  • 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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  • Swan Bitcoin halts IPO plans and shuts down mining operations

    Swan Bitcoin halts IPO plans and shuts down mining operations

    Swan Bitcoin halts IPO plans and shuts down mining operations
    • Swan Bitcoin delays IPO plans due to shutdown of its mining operations.
    • CEO cites reduced revenue from mining as reason for halting IPO efforts.
    • Mining sector faces challenges, with firms like Bitfarms and Northern Data adapting.

    Swan Bitcoin, a financial services firm specializing in Bitcoin investments, has announced a significant strategic shift. Cory Klippsten, the company’s CEO, revealed that Swan Bitcoin will be scrapping its initial public offering (IPO) plans and shutting down its mining operations.

    The announcement, made on July 22 via X (formerly known as Twitter), comes as the company grapples with the financial fallout from recent developments in the cryptocurrency mining sector.

    Halting IPO plans pegged on cessation of Bitcoin mining activities

    According to Klippsten, the cessation of Swan Bitcoin’s mining activities is a pivotal factor behind the decision to delay the IPO indefinitely. He stated, “Without revenue from our mining arm, we expect to halt our plans for a public offering.”

    This move reflects broader challenges within the cryptocurrency mining industry, which has been adversely affected by recent Bitcoin halving events.

    In January 2024, Swan Bitcoin launched its mining venture with ambitious plans to become a publicly traded entity in the U.S. within a year. At that time, the company reported generating $125 million in revenue and had expanded its workforce significantly.

    However, the halving of Bitcoin’s block reward from 6.25 BTC to 3.125 BTC in April has diminished mining earnings for many firms, including Swan Bitcoin.

    The halving event, which occurs approximately every four years, effectively reduces the rewards miners receive for validating transactions on the Bitcoin network. This reduction has led to a decline in profitability for several major mining companies.

    Bitfarms, a Canadian mining firm, is among those affected, facing increased pressure following a hostile takeover bid from Riot Platforms.

    Swan Bitcoin scaling back on spending with staff reductions

    In response to the financial strain, Swan Bitcoin is scaling back its accelerated spending plans and implementing staff reductions.

    Klippsten noted that this shift would impact various functions within the company, indicating a significant restructuring effort.

    Despite these challenges, the broader cryptocurrency mining sector is witnessing varied responses. German mining firm Northern Data has announced plans to pursue an IPO in the US within the first half of 2025, while Genesis Digital Assets is also considering a public offering.

    Swan Bitcoin’s strategic retreat underscores the volatile nature of the cryptocurrency market and the challenges companies face in navigating financial pressures and regulatory landscapes.

    As the company recalibrates its business model, the future of its IPO plans remains uncertain.

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  • Peer-to-peer crypto exchange Paxful to suspend operations

    Peer-to-peer crypto exchange Paxful to suspend operations

    • Paxful will temporarily halt operations.
    • The exchange’s CEO however stated that they are not sure if it will resume operations.
    • This is the second peer-to-peer crypto exchange to shut down.

    Paxful CEO Ray Youssef has published a post on the exchange’s website stating that the peer-to-peer (P2P) exchange will be suspending its marketplace. Ray went ahead to state that they are not sure if the exchange will resume operations.

    This is the second popular P2P exchange to shut down in 2023 after LocalBitcoins announced shutting down in February.

    Key staff departures and regulatory challenges

    The CEO cited key staff departures and regulatory challenges in the post saying:

    “This will probably come as a big shock to many. While I cannot share the full story now, I can say that we unfortunately have had some key staff departures. Also, regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and most heavily in the U.S. While we work through these issues, we have taken the most secure option and ask you to explore self-custody and trade elsewhere.”

    The CEO said that the biggest priority at the moment is safeguarding customer funds and advised customers to withdraw where possible. He has gone ahead to recommend withdrawing to self-custody wallets like Exodus and Muun.

    Ray also stated that Paxful will be offering an easy migration to other P2P alternatives for non-US customers. He highlighted three P2P exchanges namely Noones, Bitnob and Yellow Card.

    The Paxful Wallet will however remain operational for customers to retrieve their funds.

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