{"id":32175,"date":"2023-07-06T10:23:11","date_gmt":"2023-07-06T14:23:11","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/bitcoin-mining-activity-sees-huge-surge-in-uae-heres-the-latest\/"},"modified":"2023-07-06T10:23:13","modified_gmt":"2023-07-06T14:23:13","slug":"bitcoin-mining-activity-sees-huge-surge-in-uae-heres-the-latest","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=32175","title":{"rendered":"Bitcoin Mining Activity Sees Huge Surge in UAE \u2013 Here\u2019s the Latest"},"content":{"rendered":"
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Bitcoin mining companies have been looking for a suitable region to call home ever since they were forced to leave China.\u00a0<\/p>\n

Many of them are now eyeing the United Arab Emirates as a potential location to set up shop in, as the country started emerging as the crypto mining hub in the Middle East.<\/p>\n

Some major mining companies have already signed agreements and entered partnerships with the digital asset arm of a sovereign wealth fund from Abu Dhabi.\u00a0<\/p>\n

The fund, known as Zero Two, partnered with a native Bitcoin mining company Phoenix Technology in 2021. The move started a Bitcoin mining revolution in the region.<\/p>\n

While mining companies were slow to approach, they are developing a strong interest in operating in the area.\u00a0<\/p>\n

The momentum kickstarted by Zero Two and Phoenix Technology\u2019s partnership was continued earlier in 2023, when the fund entered its second partnership.\u00a0<\/p>\n

This time, it teamed up with a US mining company, Marathon Digital.<\/p>\n

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As of early July 2023, the UAE\u2019s operational Bitcoin mining capacity is approximately 4% of Bitcoin\u2019s global hashrate.\u00a0<\/p>\n

This translates to around 400 megawatts, according to Bitcoin mining expert Jaran Mellerud.<\/p>\n

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He noted that at an assumed average energy efficiency of 30 J\/TH, BTC miners in the UAE should generate approximately 13 EH\/s. This represents 4% of the total Bitcoin hashrate.<\/p>\n

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UAE has an abundance of energy useful to the miners<\/h2>\n

Apart from being crypto-friendly, unlike China, the UAE can also offer abundant energy resources.\u00a0<\/p>\n

All of the country\u2019s electricity is generated by natural gas, but the nation is making a shift toward nuclear and solar power.<\/p>\n

The UAE just opened the largest nuclear power plant in the region, with a total capacity of 4 gigawatts.\u00a0<\/p>\n

Furthermore, it is set to expand this year, so the influx of nuclear energy will boost the demand for flexibility.<\/p>\n

The country is also perfectly positioned to benefit from solar power. The region features massive solar fields that produce large amounts of additional energy, periodically.\u00a0<\/p>\n

A lot of their energy is wasted via the desalination plants. This wasted power can be put to a better purpose by directing it toward Bitcoin mining companies.<\/p>\n

The UAE will become the major mining nation over the next few years<\/h2>\n

The researcher concluded that Bitcoin miners could have a future in the UAE.\u00a0<\/p>\n

With that in mind, it is likely that they will continue to approach the country and enter into new partnerships and collaborations with the fund, and the local authorities.<\/p>\n

Mellerud believes the UAE will become a major Bitcoin mining nation in several years. More than that, it could be an example for neighboring countries.<\/p>\n

At the moment, mining profitability remains low, despite seeing an increase recently.\u00a0<\/p>\n

At this time, miners earn $0.077 per terahash per second (TH\/s) each day. At its peak, it was at $0.40 TH\/s\/day in 2021, when the industry was at the height of the bull market.<\/p>\n

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