Al Abraaj Restaurants Group Becomes the First Public Company in the Middle East to Hold Bitcoin on Its Balance Sheet

In a watershed moment for Gulf capital markets, Al Abraaj Restaurants Group (trading on the Bahrain Bourse as ABRAAJ) disclosed on Wednesday that it has transferred part of its corporate treasury into Bitcoin

In a move that could have huge implications for the future of cryptocurrency in the Middle East, the Bahraini food services operator, Al Abraaj Restaurants Group (trading on the Bahrain Bourse as ABRAAJ), has disclosed having transferred part of its corporate treasury into Bitcoin (BTC).

This makes Al Abraaj the first publicly listed company in the Middle East to hold the cryptocurrency on its balance sheet.

Announced via a bourse statement in Arabic on Wednesday, the move sees New York–based merchant bank 10X Capital helping to structure and fund the initiative.

The two firms are also planning a separate $710 million vehicle for Nakamoto–which is launching out of Trump advisor and BTC Inc. CEO David Bailey’s firm–that they hope to list on Nasdaq later this year. It’s hoped the move will put the company, which is also planning to raise an additional $500 million in private capital, in a strong position to aggregate several companies' treasury units.

The two firms said they will pursue additional capital raises so the restaurant chain can “increase the units of Bitcoin per share,” mirroring the playbook pioneered by MicroStrategy (Nasdaq: MSTR) in the United States and, more recently, by Japan’s Metaplanet (TSE: 3350).

The move comes as several large companies are beginning to allocate a portion of their balance sheet to Bitcoin in a bid to hedge against inflation and diversify their investments.

While the size of Al Abraaj’s initial allocation was not disclosed, management signalled that further purchases are likely as it seeks to align treasury reserves with “a long-term, hard-cap monetary asset.”

"We are excited to announce that Al Abraaj has completed a historic first-time purchase of Bitcoin within its institutional treasury," said the company in a statement.

"This move makes Al Abraaj the first public company in the Middle East to hold Bitcoin on its balance sheet and signifies a watershed moment for Gulf capital markets.

"As the leading food services operator in the region, we are constantly looking for new and innovative ways to enhance our business and deliver value to our shareholders. We believe that Bitcoin is a valuable addition to our treasury assets and will help us to achieve our long-term financial goals.

"We are also mindful of our obligations to operate in accordance with Islamic financial mandates. We believe that this investment can be structured in a manner that is fully compliant with Sharia principles.

"We are grateful for the support of 10X Capital in structuring this transaction and facilitating the purchase of Bitcoin. We look forward to continuing to work together to identify and pursue opportunities that will benefit both of our companies and the broader investment community."

The two firms are also planning a separate $710 million vehicle for Nakamoto–which is launching out of Trump advisor and BTC Inc. CEO David Bailey’s firm–that they hope to list on Nasdaq later this year. It’s hoped the move will put the company, which is also planning to raise an additional $500 million in private capital, in a strong position to aggregate several companies' treasury units.

The two firms said they will pursue additional capital raises so the restaurant chain can “increase the units of Bitcoin per share,” mirroring the playbook pioneered by MicroStrategy (Nasdaq: MSTR) in the United States and, more recently, by Japan’s Metaplanet (TSE: 3350).

The move could have huge implications for the future of cryptocurrency in the Middle East. It is hoped that the partnership will open up Bitcoin access to investors from Saudi Arabia, Kuwait, Qatar, Oman and beyond through the purchase of ABRAAJ shares on the Bahrain Bourse.

The decision to place the 38-year-old restaurant group’s excess cash into Bitcoin puts it in rarefied company.

In the United States, MicroStrategy (Nasdaq: MSTR) and Tesla (Nasdaq: TSLA) sparked global headlines when they began converting treasury reserves into BTC in 2024, and Tokyo-listed Metaplanet (TSE: 3350) adopted the same playbook this spring. Their stocks have been among 2024’s top performers, and Al Abraaj is betting the market will reward a similar conviction trade in the Gulf.

"Bitcoin Treasury Co 🤝 Kingdom of Bahrain. LFGGGGGG," said David Bailey, a partner at 10X Capital and a vocal proponent of corporate BTC adoption, in a post on X.

At press time, BTC traded at $102,732.