Saudi Central Bank Bets Big on Bitcoin—Ditches Oil for MicroStrategy’s Crypto Play

In a seismic shift for petrodollar economics, Saudi Arabia’s central bank just placed its chips on Michael Saylor’s Bitcoin gamble. The move signals a growing institutional appetite for crypto—and a not-so-subtle middle finger to traditional energy markets.

Why now? With oil revenues looking shakier than a DeFi stablecoin, the Saudis are hedging with digital gold. MicroStrategy’s 214,000 BTC stash suddenly looks like the ultimate treasury reserve asset.

The twist? This comes just as Wall Street banks start quietly unloading their Bitcoin ETFs. Someone forgot to tell Riyadh that ’smart money’ flows both ways.

Saudi Central Bank enters crypto with MicroStrategy’s help

Recent SEC filings show the central bank now holds 25,656 shares of the firm, which is widely recognized for pioneering the use of bitcoin as a treasury reserve.

This investment effectively ties a portion of Saudi Arabia’s sovereign wealth to the crypto market. 

Needless to say, the Saudi Central Bank’s recent investment in Strategy was interpreted by the crypto community as a quiet but powerful endorsement of Bitcoin’s long-term potential.

That being said, Strategy recently made headlines with its Q1 2025 earnings report by announcing a bold expansion of its Bitcoin acquisition plan, doubling its capital allocation to a staggering $84 billion.

The firm now holds 568,840 BTC, valued at around $68 billion, further cementing its position as the largest institutional holder of Bitcoin.

However, despite the fanfare, Strategy’s stock (MSTR) closed 5% lower on the 15th of May, at $397.

At press time, it was at $393.94, down by 0.78%, with market watchers citing volatility and concerns over the company’s Leveraged crypto strategy.

Other nations and their respective crypto approach

Traditionally, central banks have leaned on Gold and U.S. dollars to safeguard long-term value, but a subtle shift is emerging.

A growing number of nations now, including the United States, the United Kingdom, El Salvador, Iran, and Bhutan, have started to add Bitcoin to their national treasuries.

Norway’s sovereign wealth fund had previously set a precedent by boosting stakes in crypto-exposed firms like Strategy, Coinbase, and Metaplanet.

Following suit, the Saudi Central Bank has now entered the digital asset arena, marking a significant MOVE toward crypto exposure.

This follows its 2024 involvement in a China-led digital currency trial, which many view as a strategic signal toward diversifying away from dollar-dominated oil trade systems and possibly laying the groundwork for broader crypto adoption within the Kingdom.

Abu Dhabi joins the fray

Well, the Saudi Central Bank isn’t alone in expanding its crypto footprint; Abu Dhabi’s sovereign wealth fund, Mubadala, has also made a decisive move.

In its latest SEC filing, Mubadala revealed a $408.5 million investment in BlackRock’s spot Bitcoin ETF, marking a notable uptick from its prior holdings.

This rising institutional interest from the Gulf region underscores a broader strategic shift as influential financial entities reallocate capital toward Bitcoin exposure.