Bahrain‘s AlAbraaj Restaurants Embraces Bitcoin Treasury Strategy
In a bold move, AlAbraaj Restaurants Group, a publicly listed catering company based in Bahrain, has adopted a Bitcoin treasury strategy. This decision, announced on May 15, marks a significant step for the company, which boasts a market capitalization of $24.22 million. The move follows the footsteps of other publicly traded companies, most notably MicroStrategy, which has become known for its large Bitcoin holdings.
AlAbraaj Restaurants Group’s partnership with 10X Capital, a prominent investment firm, will guide its Bitcoin treasury strategy. This collaboration aims to emulate MicroStrategy‘s success, with AlAbraaj setting its sights on becoming the “MicroStrategy of the Middle East.” The company’s decision to embrace Bitcoin as a reserve asset reflects its commitment to shareholder value and its belief in Bitcoin‘s potential as a pivotal force in the future of finance.
Sharia-Compliant Bitcoin Access
Beyond its treasury strategy, AlAbraaj Restaurants Group is also seeking to provide Sharia-compliant access to Bitcoin for the Islamic world. This initiative aims to bridge the gap between the growing interest in Bitcoin and the unique financial considerations of the Islamic community. The company plans to develop its own Sharia-compliant financial instruments to achieve this goal, which could potentially open up new avenues for investment in Bitcoin within the Islamic market.
10X Capital‘s Role and the GCC
10X Capital is a key player in AlAbraaj’s journey into the Bitcoin market. Known for its expertise in digital asset treasury management, 10X Capital has previously advised Nakamoto Holdings on its recent $710 million fundraising. The firm’s involvement in AlAbraaj’s Bitcoin treasury strategy suggests a growing trend of companies adopting Bitcoin as a reserve asset, particularly in the Middle East.
10X Capital CEO Hans Thomas highlighted the potential for Bitcoin exposure in the Gulf Cooperation Council (GCC), a region with a combined GDP exceeding $2.2 trillion. This region, while possessing substantial wealth, has yet to see a publicly traded Bitcoin treasury company like MicroStrategy. AlAbraaj’s move could potentially pave the way for greater Bitcoin adoption within the GCC.
Early Investment and Future Growth
AlAbraaj Restaurants Group has already made an initial investment of 5 BTC and plans to continue accumulating more. The company, which reported $12.5 million in earnings before interest, taxes, depreciation, and amortization in 2024, believes that Bitcoin will play a pivotal role in its growth strategy. AlAbraaj is confident that Bitcoin will strengthen its portfolio, leading to expansion in both the catering sector and the finance industry.
The company’s bold move into the Bitcoin market underscores the growing institutional interest in digital assets. AlAbraaj’s adoption of a Bitcoin treasury strategy and its focus on Sharia-compliant access to Bitcoin could have significant implications for the future of both cryptocurrency and the Middle Eastern financial landscape.
