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Abu Dhabi Sovereign Wealth Fund Leads UAE Bitcoin Mining

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The United Arab Emirates (UAE) has become a force to be reckoned with in the bitcoin mining space, led by the Abu Dhabi sovereign wealth fund. Fueled by political stability, entrepreneurial spirit and abundant energy resources, this strategic move has transformed the UAE into an emerging bitcoin mining hub.

As the world focuses on the Middle Eastern powerhouse, Luxor Business Development Associate Jaran Mellerud said: in-depth study Gain insight into the fascinating story of how the Abu Dhabi sovereign wealth fund drove the expansion of bitcoin mining in the UAE to unprecedented heights.

United Arab Emirates map | Source: Computing power index

Bitcoin Mining – A Collaborative Vision

At the forefront of this great enterprise is the Abu Dhabi sovereign wealth fund, which acted as the catalyst for the rise of Bitcoin mining in the UAE. In late 2021, their digital asset division Zero Two (formerly FS Innovation) entered into a partnership with local bitcoin mining firm Phoenix Technology. result? A massive 650-megawatt water-cooled mining farm in Abu Dhabi, with an investment of up to $2 billion, has cemented its position as the largest single bitcoin mining operation ever.

“Scale does matter in bitcoin mining. The UAE is making sure it plays in the big leagues,” said Jaran Mellerud, a prominent figure in the cryptocurrency space.

The ambitious spirit of the Abu Dhabi sovereign wealth fund did not stop there. In February 2023, Zero Two joined forces with Marathon, a well-known public miner in the United States, to consolidate its position. This latest partnership marks the establishment of two immersion cooling facilities in Abu Dhabi with a combined capacity of 250 MW. Zero Two will have 200 MW, while Marathon will operate the remaining 50 MW.

“The collaboration between Zero Two and Marathon demonstrates the UAE’s commitment to cementing its position as a serious and ambitious player in the global bitcoin mining space,” explained industry expert Jaran Mellerud.

set benchmarks

Through these ground-breaking moves, the UAE is positioning itself as the leading bitcoin mining country in the Middle East. Despite its neighbor’s rich energy resources, the UAE’s innovative prowess puts it at the forefront of the industry.

“All of these energy-rich countries may have huge bitcoin mining potential, but the innovative UAE is leading the way,” Mehlerud emphasized.

While the UAE’s vast energy resources have undoubtedly bolstered its mining capabilities, the country’s commitment to expanding its power supply has cemented its dominance. The UAE has used its status as an OPEC member and one of the world’s largest oil producers to diversify its energy sources.

“The UAE continues to expand access to electricity at a pace that North American and European consumers can only dream of,” explained Mehlerud.

The UAE’s efforts have led to the commissioning of Barakah, the largest nuclear power plant in the Arab world, generating an estimated 19 percent of the country’s electricity. In addition, large-scale solar construction plans are underway, and the UAE will harness the power of its vast, sun-drenched desert.

Bitcoin Mining as a Catalyst for Energy Flexibility

The combination of Bitcoin mining and the UAE’s expanding electricity supply holds great potential.Bitcoin miners own unique advantage As a flexible electricity consumer, it can provide much-needed demand flexibility to an inflexible nuclear power grid.

“Bitcoin miners are uniquely flexible consumers of electricity and as such could provide much-needed demand flexibility to inflexible nuclear power grids,” Mellerud emphasized.

By leveraging this synergy, the UAE’s electricity system can reduce its seasonal demand and increase efficiency and resilience.

“The UAE continues to expand electricity access at a pace that North American and European consumers can only dream of,” concluded Mellerud, adding: “Overall, the UAE will become an increasingly important BTC mining country over the next few years and can provide other A case study that countries in the Middle East can emulate.”

At press time, BTC was trading at $30,662, just below the intermediate resistance at $30,700.

BTC price below $30,700 resistance on 2-hour chart Source: BTCUSD on TradingView.com

Featured image via Kamil Rogalinski/Unsplash, chart via TradingView.com



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