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Jessy(@susanliu33), bitchain vision
The rumored boots of “Binance seeks sale” have landed.
On March 12, 2025, Binance announced a $2 billion investment (paid in stablecoins) in Abu Dhabi MGX, which acquired a minority stake in Binance.The deal is Binance’s first institutional investment to date and the largest single investment in a cryptocurrency company.
After years of deep cultivation in the UAE, Binance has finally been tied deeper with the UAE through this $2 billion investment.
Who is Abu Dhabi MGX?
MGX is a technology investment company announced in March 2024 by the Abu Dhabi Artificial Intelligence and Advanced Technology Commission (AIATC), formed by Abu Dhabi sovereign fund Mubadala and the G42 Group, with funds mainly provided by the UAE government and some global partners.Plays an important role in the fields of artificial intelligence and advanced technology.
MGX’s board chair is Sheikh Tahnoun bin Zayed Al Nahyan.He is the son of the late UAE’s founding father, the younger brother of the current UAE president, and the Deputy Chief of Abu Dhabi, and the UAE’s national security adviser.
From the investor behind MGX, Abu Dhabi sovereign fund, and the actual controller, Abu Dhabi Deputy Chief, it can be seen thatMGX’s investment behavior can basically be equated with the UAE government’s behavior.
A more noteworthy detail is that Abu Dhabi sovereign fund Mubadala also holds BTC spot ETFs.According to Reuters, as of February 2025, Mubadala’s iShares Bitcoin ETF was valued at $437 million.This makes it the seventh largest known holder of BlackRock’s Bitcoin ETF.
What does it mean for Binance to invest?
According to Binance’s official disclosure, Binance currently has 5,000 employees worldwide, of which 1,000 are in the UAE.It has extensive operations in the UAE.MGX’s AI background seems to help Binance achieve cross-innovation in the fields of artificial intelligence and blockchain.
But the significance of this investment that is more worthy of attention is the background of the Abu Dhabi sovereign fund behind MGX.In other words, Binance has the UAE as a sovereign state.Before the official establishment of this investment, there were rumors that Binance would be acquired or invested by funds such as BlackRock in the United States.Seeking “protection” of sovereign states is something Binance has been doing. Neither China nor the United States have accepted Binance’s surrender before. Even after being fined 4.3 billion US dollars by the United States, Binance still failed to get asylum from the United States as he wished.
Binance has long been working hard in the UAE. Since 2022, it has obtained a number of compliance licenses locally and has a large number of local employees.Binance CEO Richard Teng was once the CEO of the Financial Services Authority of Abu Dhabi.It can be seen that the investment cooperation between Binance and the UAE has planted seeds a long time ago.
For Binance, this cooperation not only obtains a large amount of stablecoin investment at one time, injecting vitality into Binance’s future innovation and promoting the improvement of Binance’s valuation.This is a big step for Binance to develop compliance next. With the help of MGX resources and influence, Binance may be able to better meet global regulatory requirements in the future.
What does this investment mean for the crypto industry?
MGX’s investment in Binance shows that the Abu Dhabi sovereign fund Mubadala, behind MGX, recognizes the potential of the cryptocurrency industry, which sets a benchmark for other institutional investors. It is expected that more institutions will follow up, bringing a large amount of funds and resources to the industry and promoting the development of the industry. The entry of sovereign fund will also prompt the cryptocurrency industry to mature faster in compliance, supervision, technology and other aspects.
Mubadala also invests in Bitcoin spot ETFs.The active entry of major financial institutions and sovereign states in the world into crypto will also further promote the mainstreaming of the crypto industry.
Is Binance’s currency selling behavior in January related to this investment?
Binance reduced its holdings of crypto assets by US$8 billion in January 2025.There were many speculations in the industry at that time, but now it seems that it may have a lot to do with the investment accepted this time.Selling virtual assets with high risk and high volatility is not only conducive to valuation confirmation in investment, but also allows Binance’s old shareholders to receive cash dividends before the new shareholder MCX enters.
