Bahrain’s AlAbraaj Restaurants Group Embraces Bitcoin with 10X Capital’s Guidance

Bahrain’s AlAbraaj Restaurants Group, a publicly listed catering company, has made a bold move to become the “MicroStrategy of the Middle East” by adopting a Bitcoin treasury strategy. Partnering with 10X Capital, the group aims to integrate Bitcoin into its corporate treasury, starting with an initial purchase of 5 BTC and plans for gradual increases.

• AlAbraaj adopts Bitcoin treasury strategy
• Partners with 10X Capital
• Aims to be the “MicroStrategy of the Middle East“
• Introduces Sharia-compliant Bitcoin access

With a market cap of $24.2 million, AlAbraaj reported $12.5 million in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for 2024, underscoring its profitability. This financial health positions the company well to venture into the dynamic world of cryptocurrencies. Abdullah Isa, head of AlAbraaj’s Bitcoin Treasury Committee, stated,

“Our initiative to become a Bitcoin treasury company reflects our forward-looking approach and our commitment to enhancing shareholder value.”

AlAbraaj’s strategy not only aims to align with its vision of developing Islamic finance tools but also introduces Bitcoin access that is Sharia-compliant, or aligned with Islamic financial principles, to the region.

Hans Thomas, CEO of 10X Capital, emphasized the significance of this development, saying,

“Until now, the region lacked a public Bitcoin treasury company like MicroStrategy.”

10X Capital, which recently helped Nakamoto Holdings raise $710 million, is well-positioned to guide AlAbraaj through its Bitcoin acquisition strategy. A Bitcoin treasury strategy involves holding Bitcoin as a corporate asset, much like traditional treasuries hold cash or bonds, but with the unique potential for value appreciation that Bitcoin offers.

The Gulf Cooperation Council (GCC), with its combined GDP of $2.2 trillion and over $6 trillion in sovereign wealth, presents a fertile ground for AlAbraaj’s pioneering efforts. This strategic move could catalyze broader cryptocurrency adoption across the Middle East, aligning with global trends. For instance, American fast food chain Steak ‘n Shake is set to begin accepting Bitcoin payments nationwide starting May 16.

Parallel to AlAbraaj’s initiative, the crypto payment landscape continues to evolve. Mesh, a crypto payments platform, has integrated with Apple Pay, allowing merchants to accept cryptocurrency payments seamlessly. Additionally, global payments giant Stripe is developing a U.S. dollar-backed stablecoin aimed at markets outside the U.S., U.K., and Europe. These developments underscore the growing acceptance of cryptocurrencies in everyday transactions.

Amid these advancements, former Twitter CEO Jack Dorsey has urged Signal Messenger to integrate Bitcoin for peer-to-peer (P2P) payments, further highlighting Bitcoin’s potential beyond mere investment. This push for integration into everyday apps reflects the broader goal of making Bitcoin a practical tool for financial freedom and decentralization.

While AlAbraaj’s move is a testament to the disruptive potential of Bitcoin, it’s crucial to acknowledge the inherent risks. Bitcoin’s notorious volatility presents challenges for corporate treasuries. However, with careful management and a long-term perspective, AlAbraaj could set a precedent for other companies in the region and beyond. The development of Sharia-compliant Bitcoin access also brings to light potential regulatory hurdles, but AlAbraaj’s commitment to Islamic finance principles might help navigate these complexities.

As AlAbraaj blazes a trail in the Middle East, it’s not just dipping its toes into the Bitcoin pool—they’re doing a full cannonball. This move could redefine the future of finance in the region, but let’s not forget to keep our wallets and our wits about us on this wild ride of cryptocurrency adoption.

Key Questions and Takeaways

What is AlAbraaj’s goal with its Bitcoin treasury strategy?
AlAbraaj aims to become the “MicroStrategy of the Middle East” by adopting a Bitcoin treasury strategy, inspired by MicroStrategy’s model of holding Bitcoin as a corporate asset.

How is AlAbraaj planning to integrate Bitcoin into its operations?
AlAbraaj has started with an initial purchase of 5 BTC and plans to gradually increase its holdings, with the support of 10X Capital for treasury management and Bitcoin acquisition strategies.

What makes AlAbraaj’s Bitcoin strategy significant in the Middle East?
AlAbraaj’s strategy is significant as it introduces Sharia-compliant access to Bitcoin and aims to develop financial tools aligned with Islamic finance principles, filling a gap in the region’s corporate landscape.

What other developments in cryptocurrency adoption are mentioned?
The developments mentioned include Steak ‘n Shake’s decision to accept Bitcoin payments, Mesh’s integration with Apple Pay, Stripe’s development of a U.S. dollar-backed stablecoin, and Jack Dorsey’s advocacy for Bitcoin integration in Signal Messenger.

How does the Gulf Cooperation Council’s economic power relate to AlAbraaj’s strategy?
The Gulf Cooperation Council’s $2.2 trillion combined GDP and over $6 trillion in sovereign wealth highlight the region’s economic significance, making AlAbraaj’s move to become a public Bitcoin treasury company particularly noteworthy.