Al Abraaj Restaurants Group has made history by adding Bitcoin to its corporate treasury. The Bahrain-based restaurant chain announced it bought an initial five Bitcoins for its balance sheet.
This makes Al Abraaj the first publicly traded firm in Bahrain, the Gulf Cooperation Council, and the wider Middle East to hold Bitcoin as a reserve asset.
Building on Strong Performance
The company reported a 2024 EBITDA of $12.5 million, underlining its healthy cash flow. By using part of its profits to buy Bitcoin, Al Abraaj aims to diversify its holdings and tap into emerging finance trends.
Leaders see Bitcoin as offering a hedge against traditional risks and a way to boost long-term returns for shareholders.
Partnering with 10x Capital
To manage its new digital asset strategy, Al Abraaj teamed up with New York’s 10x Capital. That firm has a track record of guiding public companies into Bitcoin investments, most notably advising on a $710 million fundraising for a Nasdaq-listed Bitcoin treasury company.
Together, they plan to raise more funds to buy additional Bitcoin, to raise the number of Bitcoins held per share.
Sharia Compliant Innovation
Al Abraaj also wants to bring Islamic finance into the Bitcoin arena. The company intends to create Sharia-compliant tools so that investors in the Islamic world can gain exposure to Bitcoin in a way that meets religious guidelines. This move could open the door for wider institutional and retail adoption across the region.
Regional Crypto Momentum
The Middle East has grown more welcoming to digital assets in recent years. The UAE rolled out clear crypto rules, while Saudi Arabia has shown keen interest in blockchain projects.
Yet most regional players have focused on launching exchanges or issuing tokens. Al Abraaj’s decision to hold Bitcoin directly is a first of its kind and may prompt service providers, auditors, and regulators to deepen their crypto know-how.
Governance and Risk Management
To oversee its Bitcoin holdings, Al Abraaj will set up a dedicated Bitcoin Committee. This group will include experienced crypto investors, portfolio managers, and capital markets experts.
The company will also put in place strong custody solutions and risk controls. Regular updates on Bitcoin performance and policy changes will be shared with shareholders to ensure full transparency.
A Statement from Leadership
Abdulla Isa, chairman of Al Abraaj’s Bitcoin Treasury Committee, said the move shows the firm’s forward-looking stance and desire to boost shareholder value.
He added that Bitcoin will play a crucial role in finance’s future and praised 10x Capital for helping build what he called “the MicroStrategy of the Middle East.”
Long-Term Implications
By treating Bitcoin as a reserve asset, Al Abraaj is betting on its lasting value. This choice affects how the company will handle cash flow, accounting, and risk. It may also set a new standard for other public firms in the region.
As more companies follow suit, local markets could see a shift in how they view digital assets overall.
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