Saudi Central Bank Secures $60 Billion Bitcoin Exposure via Strategy Stake: A Landmark Move in Global Reserve Management

In a striking development that signals evolving attitudes toward digital assets among sovereign wealth managers, the Saudi Central Bank has revealed a significant investment in Strategy (formerly MicroStrategy), granting the Kingdom its first indirect exposure to Bitcoin. This move aligns Saudi Arabia with a growing list of countries exploring cryptocurrency as part of their reserve diversification strategies.

Saudi Central Bank’s Bitcoin Exposure: What the Filing Reveals

On May 16, 2025, a filing with the U.S. Securities and Exchange Commission (SEC) disclosed that the Saudi Central Bank holds 25,656 shares in Strategy, a Nasdaq-listed company renowned for its substantial Bitcoin holdings. Strategy currently owns approximately 568,840 BTC, valued at nearly $60 billion at current market prices.

By holding shares in Strategy, the Saudi Central Bank gains indirect exposure to Bitcoin without directly purchasing or holding the cryptocurrency itself. This approach mitigates some of the risks and regulatory complexities associated with direct Bitcoin ownership, while still participating in the asset’s potential upside.

Context: Why Is Saudi Arabia Pivoting Toward Bitcoin Now?

Historically, central banks have favored traditional reserve assets such as gold, U.S. Treasury bonds, and other fiat currencies to safeguard their national wealth. However, the global financial landscape is shifting. Innovations in decentralized finance, increasing institutional adoption of crypto, and geopolitical uncertainties have prompted some sovereign entities to reconsider their reserve compositions.

Saudi Arabia’s investment in Strategy reflects a hybrid approach-balancing the stability of conventional assets with the growth potential of digital currencies. This strategy is reminiscent of Norway’s sovereign wealth fund, which has taken minority stakes in crypto-forward companies like Coinbase and Strategy to gain exposure without directly holding cryptocurrencies.

Global Trends: Sovereign Bitcoin Exposure Is Growing

According to Bitcoin Treasuries data, over a dozen countries-including El Salvador, Ukraine, Bhutan, and the United States-now have some form of Bitcoin exposure through sovereign or central bank holdings. Saudi Arabia’s entry into this group underscores the increasing legitimacy and acceptance of Bitcoin as a strategic reserve asset.

This trend highlights a broader recognition of Bitcoin’s role as “digital gold,” offering a hedge against inflation, currency devaluation, and geopolitical risk.

Saudi Arabia Leads MENA in Crypto Adoption and Growth

Saudi Arabia is at the forefront of cryptocurrency adoption in the Middle East and North Africa (MENA) region. Bitget Research reported that the region surpassed 500,000 average daily crypto traders in February 2024, with Saudi Arabia contributing 129,397 daily users-outpacing the United Arab Emirates, which recorded 106,111.

Chainalysis’ 2024 MENA report further confirms Saudi Arabia’s rapid crypto economy expansion, with a remarkable 154% year-over-year growth for the second consecutive year. This momentum is fueled by a combination of factors:

• Strong government interest in blockchain innovation

• Exploration of Central Bank Digital Currencies (CBDCs)

• Integration of crypto in gaming and fintech sectors

• Alignment with the Kingdom’s Vision 2030 economic diversification plan

Regulatory Landscape: Challenges and Opportunities in the GCC

Despite soaring adoption, Saudi Arabia and other Gulf Cooperation Council (GCC) countries have yet to establish comprehensive regulatory frameworks for cryptocurrency exchanges and operators. No domestic crypto exchanges currently operate under formal regulatory oversight.

Ihsan Buhulaiga, an economist and former Saudi Shura Council member, has emphasized the need for GCC-wide regulatory harmonization to prevent fragmented policies from undermining regional competitiveness.

Nonetheless, Saudi Arabia is proactively engaging in international initiatives. In June 2024, the Saudi Central Bank joined the mBridge project, a cross-border CBDC payment network linking China and Saudi Arabia, aimed at facilitating international oil trade settlements.

Institutional Interest and the Role of Saudi Youth

The Saudi Central Bank’s Bitcoin exposure coincides with increased activity from traditional financial institutions in the Kingdom. Goldman Sachs and Rothschild have expanded their presence in Riyadh, with Goldman leading global tokenization projects that could benefit from Saudi Arabia’s growing crypto ecosystem.

Demographically, Saudi Arabia’s youthful population is a powerful driver of crypto adoption. Nearly two-thirds of Saudis are under 30, a generation that embraces technology and digital innovation rapidly. This demographic tailwind, combined with institutional support and evolving policies, positions Saudi Arabia as a potential leader in global crypto adoption.

What Does This Mean for the Future?

While the Saudi Central Bank’s stake in Strategy grants indirect Bitcoin exposure, it does not necessarily signal an imminent move toward direct Bitcoin holdings. Experts view this investment as an exploratory step rather than a full endorsement.

However, it sets a precedent for other Middle Eastern countries to consider digital assets as part of their reserve portfolios. As global financial markets evolve, Saudi Arabia’s hybrid approach could serve as a model for balancing innovation with financial stability.

Frequently Asked Questions (FAQs)

Does Saudi Arabia officially recognize cryptocurrencies?
As of December 2024, Saudi Arabia has not enacted specific legislation formally recognizing cryptocurrencies. The legal framework remains in development, and cryptocurrencies currently lack official status within the Kingdom.

Is the Saudi Central Bank’s investment in Strategy a sign of future direct Bitcoin purchases?
While the investment provides indirect exposure, there is no public indication that the Central Bank plans to hold Bitcoin directly. The stake is more likely a strategic experiment to gauge Bitcoin’s viability as a reserve asset.

Conclusion

Saudi Arabia’s move to secure nearly $60 billion in Bitcoin exposure through its stake in Strategy marks a significant milestone in the Kingdom’s evolving financial strategy. It reflects a growing acceptance of digital assets among sovereign wealth managers and highlights Saudi Arabia’s leadership in the MENA region’s crypto growth.

As the Kingdom advances its Vision 2030 goals, integrating blockchain and digital currencies into its economic framework, this investment could pave the way for broader adoption and regulatory development in the region.