Saudi Central Bank Secures $60B Bitcoin Exposure via Strategy Stake

In a rare move indicating shifting global reserve strategies, the Saudi Central Bank has revealed an investment in Strategy (formerly MicroStrategy), granting the Kingdom its first indirect exposure to Bitcoin, the world’s largest cryptocurrency by market cap.

A May 16 filing with the U.S. Securities and Exchange Commission (SEC) reveals that the Saudi Central Bank holds 25,656 shares in Strategy, the world’s largest corporate Bitcoin holder.

As previously reported by CryptoNews, Strategy owns 568,840 BTC, valued at nearly $60 billion.

Why is Saudi Arabia Pivoting to Bitcoin Exposure Now?

Traditionally, central banks have favored gold and U.S. dollars as reserve assets.

Yet amid global shifts toward innovation and decentralization, Saudi Arabia appears to be exploring a hybrid approach, balancing stability with the upside potential of digital assets.

This investment mirrors the strategy of Norway’s sovereign wealth fund, which holds shares in crypto-forward firms like Coinbase and Strategy to gain market exposure without directly holding Bitcoin.

According to Bitcoin Treasuries, over a dozen countries, including El Salvador, Ukraine, Bhutan, and the United States, now have Bitcoin exposure through sovereign or central holdings.

Middle East Adoption Surges: Saudi Arabia Leads MENA’s Crypto Charge

The investment comes amid rapid crypto adoption in the Middle East, especially within Saudi Arabia. Bitget Research revealed that the region surpassed 500,000 average daily crypto traders in February 2024.

Saudi Arabia recorded 129,397 daily crypto users at its peak. This figure surpassed the UAE’s 106,111.

According to Chainalysis’ 2024 MENA report, the Kingdom’s crypto economy is expanding faster than any other in the region, marking 154% annual growth for the second straight year.

The country’s momentum is driven by interest in blockchain innovation, CBDC exploration, gaming integration, and broader fintech development, all of which align with its Vision 2030 goals to modernize and diversify its economy.

GCC Nations Struggle with Unified Crypto Policy

Saudi Arabia, like other GCC nations, has not implemented a complete regulatory system for cryptocurrency operators. While adoption rates climb, no domestic exchanges operate under regulatory oversight. This regulatory gap persists despite growing market activity.

Ihsan Buhulaiga, a respected economist and former member of the Saudi Shura Council, recently called for GCC-wide regulatory alignment, warning that fragmented policies risk undermining regional competitiveness.

Even without a comprehensive virtual asset regulatory framework, Saudi Arabia is forging ahead.

For example, in June 2024, the Saudi Central Bank joined the mBridge initiative, a cross-border CBDC payment network designed for international oil trade between China and Saudi Arabia.

Will Saudi Youth Accelerate Crypto’s Mainstream Acceptance?

Saudi Arabia’s foray into Bitcoin coincides with increased interest from traditional financial giants. Goldman Sachs and Rothschild have recently expanded operations in Riyadh. Goldman spearheads three tokenization projects globally.

Saudi Arabia’s young population drives its crypto transformation. Nearly two-thirds of Saudis are under 30. They embrace technology quickly, making them ideal adopters of blockchain and digital currencies.

Strong institutional backing and flexible policies amplify this advantage. Together, these factors position Saudi Arabia as a future leader in global crypto adoption.

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