Bahrain-based AlAbraaj Restaurants adopts Bitcoin treasury strategy

AlAbraaj Restaurants Group, a Bahrain-based publicly listed catering company with a $24.22 million market cap, has adopted a Bitcoin treasury strategy in partnership with 10X Capital. This follows a similar model to MicroStrategy, aiming to establish itself as a prominent Bitcoin holder in the Middle East. The company’s May 15th announcement detailed an initial investment of 5 BTC, with plans for significant future accumulation, making Bitcoin its primary reserve asset.

This strategic move reflects AlAbraaj’s forward-thinking approach to enhance shareholder value, capitalizing on the growing institutional interest in Bitcoin and the evolving financial landscape. The company, reporting $12.5 million in EBITDA in 2024, views Bitcoin as a key component of future finance. Abdullah Isa, head of AlAbraaj’s Bitcoin Treasury Committee, explicitly cited MicroStrategy as inspiration, aiming to replicate their success in the Middle East.

The partnership with 10X Capital is crucial to this initiative. 10X Capital provides expertise in digital asset treasury management and has a proven track record, having advised Nakamoto in its recent $710 million fundraising round. This collaboration facilitates AlAbraaj’s entry into the Bitcoin market and aids in securing further capital for Bitcoin acquisitions, thereby increasing the BTC-per-share ratio for investors.

AlAbraaj’s ambition extends beyond treasury management. The company intends to develop Sharia-compliant financial instruments, tapping into the substantial Islamic market. This initiative aims to provide access to Bitcoin for a large segment of the global population while adhering to Islamic finance principles.

10X Capital CEO Hans Thomas emphasized the strategic importance of this partnership, highlighting the significant untapped potential within the Gulf Cooperation Council (GCC). With a combined GDP exceeding $2.2 trillion and sovereign wealth exceeding $6 trillion, the GCC represents a massive market ripe for Bitcoin adoption. AlAbraaj’s move positions it to capitalize on this potential, potentially becoming a benchmark for other companies in the region.