Cryptocurrency industry leaders are converging on Abu Dhabi, urgently seeking capital injections to revive the struggling market. As Bitcoin lost momentum since October and the sector faces an unexpected winter, key figures from MicroStrategy founder Michael Saylor to Binance's Changpeng Zhao have descended upon the UAE capital, courting deep-pocketed local investors.
During last week's whirlwind of events, crypto executives shuttled between venues—from the Bitcoin Middle East conference to exclusive "whale-only" beach club soirées and superyacht champagne parties—actively pursuing meetings with representatives of UAE sovereign wealth funds. Sources indicate delegates from funds managing $330 billion in assets were circulating at these gatherings.
The UAE's crypto appetite continues growing. Binance recently secured full regulatory approval from Abu Dhabi authorities to operate its global exchange platform locally. A Mubadala sovereign wealth fund division disclosed tripling its Bitcoin investments to $518 million in November, while holding an additional $567 million in Bitcoin via ETFs.
Venture firm RockawayX dubbed the UAE "the new Wall Street for digital finance" in presentations, shortly before announcing its acquisition by an Abu Dhabi-backed entity. However, insiders caution that securing Emirati funding typically requires years of relationship-building and local operational commitments, not "parachuting in for quick cash."
With markets slumping, crypto pioneers are betting on Middle Eastern capital. At the Bitcoin Middle East conference, MicroStrategy's Saylor revealed pitching hundreds of Gulf investors—including sovereign funds—on plans to accumulate more digital assets through financial instruments. The company's stock has halved since mid-year.
Saylor's presentation depicted MicroStrategy as a Bitcoin-fueled space rocket targeting a "$20 trillion vision." Metaplanet's president, whose Japanese hotel firm transformed into a Bitcoin accumulator, announced fundraising through a "MARS" preferred share plan as its stock similarly plunged.
Other seekers include Trump family-favored investment bank Dominari Holdings and South Korea's Hanwha investment arm, which plans to establish Abu Dhabi as its regional crypto hub.
The market downturn caught many off guard. Some had anticipated Trump's full-throated industry support would accelerate adoption, but Bitcoin stalled in October amid market liquidations battering traders and exchanges.
Trump's crypto legislation also faced Democratic roadblocks, pushing capital toward overseas opportunities. Contrastingly, UAE interest keeps intensifying—state-backed investors earlier this year acquired $2 billion in Binance shares, bolstering the exchange.
Abu Dhabi is methodically establishing itself as a global crypto hub. The government lures startups with early funding, free office space, and incentives to base operations in its financial district.
"Liquidity, decision-makers, and infrastructure are all here," noted Klumi Ventures founder Kristiina Lumeste, whose firm is raising a $100 million crypto fund locally. During Abu Dhabi Finance Week, Coinbase and Circle executives mingled with Wall Street titans like Bridgewater's Ray Dalio and traditional banking leaders, with the Crown Prince inaugurating events attended by sovereign fund executives.
Yet securing UAE funding remains challenging. MidChains co-founder Basil Al Askari noted many foreign firms expect quick deals before returning home, committing "rookie mistakes" like assuming traditional attire indicates institutional affiliation. Persuading sovereign funds typically demands multi-year relationship-building and local operational commitments, he emphasized.
RockawayX's Samantha Bohbot stated: "They don't want fly-by-night operators. You need substantive stakes and long-term commitment." The firm established UAE headquarters and an incubation center before its Abu Dhabi-backed acquisition announcement.
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