Bahrain’s AlAbraaj Adopts Bitcoin Treasury Strategy

Bahrain-based AlAbraaj Restaurants partners with 10X Capital to become the region’s first public company holding Bitcoin on its balance sheet.

AlAbraaj Restaurants Group, a publicly traded hospitality company in Bahrain, has made headlines by embracing a Bitcoin treasury strategy, marking a historic step in Middle Eastern corporate finance. The firm’s decision positions it alongside global pioneers like Strategy (formerly MicroStrategy) and signals growing institutional interest in Bitcoin across the Gulf region.

A Bold Move in the Middle East

On May 15, AlAbraaj announced its partnership with U.S.-based investment firm 10X Capital to initiate a Bitcoin-focused treasury reserve policy. With a market capitalization of $24.2 million, the company aims to gradually accumulate Bitcoin as part of its long-term capital strategy, beginning with an initial acquisition of 5 BTC.

The move is inspired by Strategy, the largest corporate Bitcoin holder worldwide. AlAbraaj has openly stated its ambition to become the “MicroStrategy of the Middle East,” signaling a new era of institutional Bitcoin adoption in the region.

“Our initiative to become a Bitcoin treasury company reflects our forward-looking approach and our commitment to enhancing shareholder value,” said Abdullah Isa, head of AlAbraaj’s Bitcoin Treasury Committee. He emphasized that the company views Bitcoin as playing “a central role in the future of finance.”

Sharia-Compliant Innovation

AlAbraaj’s foray into Bitcoin is more than just a financial maneuver—it’s also a strategic alignment with Islamic finance. The company intends to provide Sharia-compliant access to Bitcoin, bridging a long-standing gap in the crypto market for Islamic investors. AlAbraaj is already exploring the development of proprietary financial tools that adhere to Islamic principles, potentially unlocking significant demand across Muslim-majority markets.

The Gulf region, comprising the six-nation Gulf Cooperation Council (GCC), is a critical target. With a combined GDP of $2.2 trillion and sovereign wealth funds exceeding $6 trillion, the GCC represents one of the world’s most liquid investment ecosystems. Yet until now, the region lacked a publicly listed entity that held Bitcoin on its balance sheet.

Hans Thomas, CEO of 10X Capital, highlighted the significance of this initiative:

“Until now, the region lacked a public Bitcoin treasury company like MicroStrategy,” he stated, adding that the AlAbraaj partnership could be a catalyst for further adoption across the Gulf.

10X Capital’s Expanding Footprint

The move aligns with 10X Capital’s broader mission to integrate Bitcoin into traditional financial infrastructure. The firm, which has ties to pro-Bitcoin political figures like Trump advisor David Bailey, recently advised on the formation of Nakamoto Holdings—a company born from the merger of KindlyMD and a Bitcoin-native holding firm. That entity successfully raised $710 million in funding under 10X’s guidance.

By advising AlAbraaj, 10X Capital is bringing its expertise to a new frontier, helping Middle Eastern businesses navigate treasury diversification and Bitcoin custody strategies.

Financial Fundamentals Support the Strategy

AlAbraaj’s Bitcoin pivot is underpinned by solid financial performance. The company posted $12.5 million in EBITDA for 2024, indicating healthy operations as it expands into adjacent sectors like fintech. This financial foundation provides the stability needed to explore alternative assets like Bitcoin while continuing to grow its core restaurant business.

This approach aligns with an emerging trend among corporates to hedge against currency devaluation, geopolitical uncertainty, and inflation—factors that have made Bitcoin an increasingly attractive reserve asset.

Bitcoin Gaining Ground in Traditional Retail

AlAbraaj’s move coincides with a broader uptick in Bitcoin utility and adoption across industries. In a separate development, American fast food chain Steak ‘n Shake announced it would start accepting Bitcoin at all of its U.S. locations beginning May 16. This signals a growing willingness among consumer-facing brands to support digital asset payments.

At the infrastructure level, Mesh, a crypto payment platform, recently rolled out Apple Pay integration, enabling crypto transactions through a familiar interface. This feature expands usability for both merchants and consumers, helping crypto payments move closer to mainstream adoption.

Meanwhile, Stripe, one of the world’s largest payment processors, revealed plans to launch a USD-backed stablecoin targeting markets outside the U.S., U.K., and E.U. This move, coming after Stripe’s regulatory approval to acquire stablecoin network Bridge, illustrates how major fintech firms are stepping in to compete with legacy banking systems like SWIFT.

In the realm of P2P messaging, Jack Dorsey, co-founder of Twitter and long-time Bitcoin advocate, recently called on Signal Messenger to integrate Bitcoin for direct, peer-to-peer payments—a move that, if realized, could significantly advance decentralized finance tools in secure communication apps.

A New Era for Crypto in the Gulf

AlAbraaj’s strategic shift may mark the beginning of a broader transformation in how Middle Eastern corporates manage their balance sheets and explore Bitcoin’s role as a reserve asset. The integration of Sharia-compliant finance and Bitcoin positions AlAbraaj as a trailblazer for businesses seeking to blend traditional financial ethics with modern digital tools.

The success of this initiative could encourage other firms in the region to follow suit, potentially ushering in a wave of institutional Bitcoin adoption across the GCC. With expert support from 10X Capital and a forward-looking strategy in place, AlAbraaj is poised to redefine how companies in the Middle East engage with the future of finance.

Conclusion

AlAbraaj Restaurants Group’s entry into the Bitcoin treasury space signals a landmark moment for crypto adoption in the Gulf region. Backed by strategic guidance from 10X Capital and rooted in both financial strength and Sharia-compliant principles, the company is carving out a unique position at the intersection of traditional and digital finance. As Bitcoin continues to gain legitimacy among corporates globally, AlAbraaj’s pioneering role may inspire a new generation of Middle Eastern companies to consider crypto as a viable component of modern treasury management.