UAE Joins Global Bitcoin Hashrate Race with Government-Backed Mining Push

The UAE just entered the Bitcoin mining arena—and they're playing for keeps. Government-backed operations are now competing for global hashrate dominance, signaling a seismic shift in how nations approach digital asset infrastructure.

State-Sponsored Hashpower

Forget basement mining rigs. The Emirates are deploying institutional-scale operations with direct sovereign support. This isn't hobbyist territory—it's geopolitical positioning disguised as computational competition. The move creates immediate pressure on existing mining hubs while demonstrating how fossil fuel wealth can pivot toward digital asset production.

Energy Arbitrage Play

Abundant energy resources meet cutting-edge hardware. The strategy leverages existing infrastructure to capture Bitcoin production during market cycles—a hedge against oil volatility that would make any traditional finance VP sweat through their bespoke suit. It's the ultimate real-world asset transformation: turning hydrocarbons into cryptographic security.

Global Hashrate Rebalancing

China's mining exodus created a power vacuum. The UAE isn't just filling it—they're professionalizing it. Expect regulatory frameworks designed to attract international mining operations alongside homegrown capacity. The playbook? Become the Switzerland of hashpower: neutral, reliable, and extremely profitable.

Traditional finance types will dismiss this as desert daydreaming—right up until their clients start asking why sovereign wealth funds own more Bitcoin than their balanced portfolios. The hashrate race just got a petrodollar injection, and the mining map will never look the same.

Is the UAE government involved in Bitcoin mining?

The United Arab Emirates has joined the list of nations choosing to embrace government-sponsored Bitcoin mining, according to recent announcements circulating on social media. CZ, the founder of Binance, responded to an announcement post about the UAE’s mining activities stating, “Has been for a while, based on my knowledge.”

Arkham Intelligence revealed back in August of 2025, that the UAE had approximately 6,300-6,450 Bitcoins worth $700 million gained through state-backed mining operations that were carried out through Citadel Mining.

Rather than allowing private companies to control the sector or attempting to restrict it through regulation, the UAE’s government is choosing to directly participate in or sponsor mining operations.

However, the Emirate of Abu Dhabi banned cryptocurrency mining on agricultural land in September 2025 and imposed fines of up to AED 100,000 on violators to protect energy resources and land-use laws.

Despite this, the UAE regards Bitcoin mining as a Core national infrastructure, in the same way that countries treat data centers, telecommunications networks, or energy projects.

News out of Dubai and Abu Dhabi in recent years has reinforced the country’s progressive approach to regulating the digital assets sector, attracting major cryptocurrency exchanges and blockchain companies, and establishing free zones specifically designed for crypto businesses.

Which other countries are involved in Bitcoin mining?

El Salvador adopted Bitcoin as legal tender in 2021, and although that was rescinded in 2025, the country still holds 7,517 BTC. The country mined 474 BTC over a period of three years using geothermal energy from volcanoes.

Bhutan, a small Himalayan kingdom, revealed in 2023 that it started secretly mining Bitcoin in 2018 using its abundant hydroelectric power resources. It mines 55-75 BTC weekly and uses the token to fund civil servant salaries and public services.

Ethiopia is in agreement with international mining companies to run their mining operations on the country’s surplus hydroelectric power.

Iran, Japan and Russia have also been making crypto-friendly policies to benefit in different ways. Iran legalized mining at the state level in 2019 to generate revenue and pay for imports under economic sanctions. The country shut down 100 illegal mining farms in 2025 and periodically bans even legal mining during periods of energy crisis.

Japan recently launched state-sponsored mining in order to balance its grid load. Russia’s regional government and state-linked utility companies in Siberia run their mining operations on hydropower. However, mining is currently banned in different areas in Russia due to energy concerns.

France’s government-backed mining operations are still in the proposal stage and are not yet fully operational, but the country intends to use its surplus nuclear energy to power its activities. For context, France produces over 70% of its electricity from nuclear power and could generate $100-$150 million annually from 1 gigawatt of surplus energy.

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