Key points:

  • The Saudi central bank's investment in Strategy gives it indirect exposure to 568,840 Bitcoin (BTC).

  • This step is similar to the Norwegian sovereign wealth fund's strategy for indirect investment in crypto.

  • Saudi Arabia leads the Middle East and North Africa in crypto adoption, with a growth rate reaching 154% annually, but the kingdom still lacks regulations governing crypto trading platforms.

In a rare move indicating a significant shift in global reserve strategies, the Saudi central bank revealed an investment in Strategy (formerly MicroStrategy), representing the kingdom's first indirect investment in Bitcoin (Bitcoin-BTC), the largest digital currency in the world by market capitalization.

This was stated in a disclosure submitted to the U.S. Securities and Exchange Commission (SEC) on May 16, indicating that the Saudi central bank owns 25,656 shares in Strategy, the largest Bitcoin (BTC) holding company in the world.

Previous reports by CryptoNews indicated that Strategy holds 568,840 Bitcoin, estimated to be worth around $60 billion.

Why is Saudi Arabia turning to invest in Bitcoin?

It is known that central banks traditionally prefer gold and the US dollar as reserve assets.

$11 TRILLION BLACKROCK SAYS CENTRAL BANKS ARE LOOKING TO BUY #BITCOIN

IT’S HAPPENING!!! pic.twitter.com/YNbZaD5EBA

— Vivek (@Vivek4real_) May 4, 2025

However, in light of global shifts towards innovation and decentralization, it seems that Saudi Arabia is moving towards a hybrid approach that balances stability with leveraging the growth potential offered by digital assets.

This investment aligns with the strategy of the Norwegian sovereign wealth fund, which owns shares in crypto-focused companies like Coinbase (NASDAQ:COIN) and Strategy, aiming to benefit from the market without directly owning Bitcoin.

According to Bitcoin Treasuries, a considerable number of countries - including El Salvador, Ukraine, Bhutan, and the United States - are now investing in Bitcoin through holdings in sovereign funds or central banks.

The adoption of digital currencies in the Middle East is growing, with Saudi Arabia at the forefront of the Arab region.

This investment step comes amid the increasing pace of crypto adoption in the Middle East, especially in Saudi Arabia. Bitget Research revealed that the number of crypto traders in the region exceeded 500,000 daily traders in February 2024.

Saudi Arabia recorded 129,397 daily users of digital currencies as its highest number, surpassing the United Arab Emirates, which had 106,111 users.

According to the Chainalysis report for the Middle East and North Africa in 2024, the crypto economy in the kingdom is growing faster than any of its regional counterparts, recording an annual growth rate of 154% for the second consecutive year.

Saudi Arabia is the fastest-growing country in adopting digital currencies in the Middle East - Source: Chainalysis. This momentum in the kingdom is attributed to the interest in blockchain technology innovations, central bank digital currencies (CBDCs), the growth of the gaming sector, and the overall development in the fintech sector, all of which align with the goals of Vision 2030 to modernize and diversify its economy.

Gulf Cooperation Council countries face difficulties in unifying crypto policy.

Like the other Gulf Cooperation Council countries, Saudi Arabia has yet to establish a comprehensive legal framework for entities operating in the crypto space. While adoption rates rise, the local market still lacks regulated trading platforms; this regulatory gap widens amid increasing market activity.

In this context, Ihsan Buhelicha - a prominent economic expert and former member of the Saudi Shura Council - recently called for regulatory coordination at the level of the Gulf Cooperation Council countries, warning that fragmented policies could weaken the regional competitiveness of the council's states.

Even in the absence of a comprehensive regulatory framework for virtual assets, Saudi Arabia continues to move forward in its adoption journey. For example, the Saudi central bank joined the mBridge initiative in June 2024, which is an international payment network for central bank digital currencies (CBDCs), specifically for international oil trade between China and Saudi Arabia.

Are Saudi youth accelerating the acceptance of digital currencies in the market?

Saudi Arabia's entry into the Bitcoin realm coincides with the increasing interest of traditional financial giants in the kingdom. Both Goldman Sachs (NYSE:GS) - which leads three global projects for the digital commoditization of tangible assets - and Rothschild have recently expanded their operations in Riyadh.

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