In a groundbreaking shift for the financial landscape in the MENA region, the Al Abraaj Restaurants Group, listed on the Bahrain Bourse as ABRAAJ, recently announced a pivotal move to integrate Bitcoin into its corporate treasury, marking a historic moment for Gulf capital markets.
Pioneering the Bitcoin Movement in MENA
According to an official statement shared in Arabic, the renowned food-services chain proclaimed that it had made a significant first-time purchase of Bitcoin, aiming to create a strategic and Sharia-compliant framework for Bitcoin investment within the Islamic financial ecosystem. The announcement highlighted that this initiative not only places Al Abraaj at the forefront of crypto adoption but also sets a precedent for others in the region.
In collaboration with New York-based 10X Capital, Al Abraaj plans to scale its bitcoin ownership, striving to increase the units of Bitcoin allocated per share. This strategy emulates the approach taken by notable firms like MicroStrategy and Japan’s Metaplanet, which successfully navigated similar pathways into the cryptocurrency space.
Furthermore, 10X Capital is establishing a substantial $710 million fund under the name Nakamoto, aimed at supporting companies toward implementing Bitcoin treasury strategies and potentially listing on Nasdaq. This initiative underscores the growing trend of institutional investors embracing cryptocurrencies.
Management underscored its commitment to Islamic finance principles, describing Bitcoin as a progressive alternative aligned with Sharia regulations. The partnership is focused on providing seamless access to Bitcoin investments for several countries, including Saudi Arabia, Kuwait, and Qatar, through the purchase of ABRAAJ shares on the Bahrain Bourse.
By entering this financial realm, Al Abraaj joins esteemed company, mirroring moves made by major corporations such as Tesla and MicroStrategy, which have redirected portions of their capital towards Bitcoin. These companies have witnessed substantial increases in their stock values due to this bold approach, and Al Abraaj anticipates a similar positive market response.
David Bailey, a key figure at 10X Capital and an advocate for corporate Bitcoin adoption, expressed enthusiasm over the collaboration on social media: “Bahrain is stepping up in a big way! Exciting times ahead for Al Abraaj with this strategic move!”
While the specifics of Al Abraaj’s initial Bitcoin acquisition remain undisclosed, company leadership hinted at potential expansions of their holdings, aiming to align their treasury with sustainable and resilient monetary assets.
Al Abraaj expressed gratitude towards influential figures in the crypto space, particularly Michael Saylor, for inspiring their pivotal decision. At this writing, Bitcoin stands at an impressive price of $102,732, showcasing the growing momentum of the cryptocurrency market.
