UAE joins global Bitcoin hashrate competition through government-backed miners

Source: CryptoNewsNet Original Title: UAE joins global Bitcoin hashrate competition through government-backed miners Original Link:

Government-Sponsored Bitcoin Mining in the UAE

The United Arab Emirates has joined the list of nations choosing to embrace government-sponsored Bitcoin mining, according to recent announcements. The UAE government now sponsors Bitcoin mining operations that will run on the nation’s substantial supply of natural gas.

Arkham Intelligence revealed that the UAE had approximately 6,300-6,450 Bitcoins worth $700 million gained through state-backed mining operations 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 core national infrastructure, similar to how countries treat data centers, telecommunications networks, or energy projects.

News from 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.

Global Bitcoin Mining Landscape

Several other countries have also embraced government-sponsored 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El Salvador adopted Bitcoin as legal tender in 2021, and although that was rescinded in 2025, the country still holds 7,517 BTC.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 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 operations on the country’s surplus hydroelectric power.

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 to balance its grid load.

Russia’s regional government and state-linked utility companies in Siberia run mining operations on hydropower, though mining is currently banned in different areas due to energy concerns.

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