In a ground-breaking move that sets a regional precedent, Al Abraaj Restaurants Group B.S.C. (Ticker: ABRAAJ) has officially become the first publicly traded company in the Middle East to adopt Bitcoin as a treasury asset. The move solidifies Bahrain’s reputation as a regional fintech innovator.
The 38-year-old hospitality giant, listed on the Bahrain Bourse, has announced the acquisition of 5 Bitcoin, marking the start of what it describes as a significant reallocation of its corporate treasury into the world’s leading digital asset. The decision, the company says, is a reflection of its “commitment to innovation and diversification,” with future plans to build upon this initial purchase.
Reporting an EBITDA of $12.5 million in 2024, Al Abraaj is positioning Bitcoin as its reserve treasury asset, signaling a long-term strategic shift in its financial operations. The company intends to gradually allocate a significant portion of its balance sheet to Bitcoin to enhance its asset portfolio and capitalize on emerging market opportunities.
“Our initiative towards becoming a Bitcoin Treasury Company reflects our forward-thinking approach and dedication to maximizing shareholder value,” said Abdulla Isa, Chairman of the newly formed Bitcoin Treasury Committee at Al Abraaj. “We believe that Bitcoin will play a pivotal role in the future of finance, and we are excited to be at the forefront of this transformation in the Kingdom of Bahrain.”
To support this bold strategy, Al Abraaj has partnered with 10X Capital, a New York-based investment firm with an extensive track record in managing treasury assets for public companies and advising Bitcoin Treasury Companies. 10X recently advised Nakamoto (Nasdaq: KDLY) on its $710 million financing—the largest-ever capital raise for a Bitcoin-focused public firm.
Hans Thomas, CEO of 10X Capital, applauded the move, saying:
“Bahrain continues to be a leader in the Middle East in Bitcoin adoption, backed by a forward-thinking regulatory framework. ABRAAJ’s historic Bitcoin purchase enables investors across the GCC—and globally—to gain exposure to Bitcoin through a public equity.”
Thomas also highlighted the transformative potential this has for the GCC, a region with a combined GDP of $2.2 trillion and over $6 trillion in sovereign wealth funds, yet previously lacking a listed Bitcoin treasury company akin to MicroStrategy, Tesla, or Metaplanet.
In preparation for its Bitcoin adoption, Al Abraaj is implementing robust governance and risk management policies, including the creation of a Bitcoin Committee composed of experienced investors, capital markets experts, and portfolio managers. The company also commits to maintaining full regulatory compliance, working within the framework set by the Central Bank of Bahrain (CBB).
Moreover, the company has expressed ambitions to innovate within shari’a-compliant financial instruments, aiming to provide broader Islamic-world exposure to Bitcoin.
This historic development underscores Al Abraaj’s intent not only to lead within the region’s restaurant and hospitality sector but also to pioneer financial innovation and contribute meaningfully to Bahrain’s digital economy.
