Al Abraj Restaurants Group Adopts Bitcoin for Treasury Management

Al Abraj Restaurants Group, a company listed on the Bahrain Bourse, has made a significant move by adopting Bitcoin for its treasury management. This decision marks a pivotal moment in the region's financial landscape, as it is the first listed firm in Bahrain to embrace Bitcoin as part of its financial strategy. The company announced this development on its official X account, signaling a shift in the corporate sector's approach to cryptocurrencies as a potential asset class.

Al Abraj has partnered with 10X Capital, a U.S.-based company known for its expertise in digital currencies. This strategic alliance aims to expand Al Abraj's digital asset investments. The firm has started by investing in five Bitcoins and plans to gradually increase its holdings in the digital asset. This move is seen as a first in Bahrain and the region for a listed company to adopt Bitcoin for treasury purposes, similar to the approach taken by other major companies globally.

According to financial statements, Al Abraj is currently performing well, with a pre-tax and interest profit of more than $12 million in 2024. The company views the Bitcoin investment as a step towards diversifying its financial portfolio and exploring alternative avenues for investment gains. Additionally, Al Abraj is committed to finding innovative ways for the Islamic finance community in the Middle East to embrace Bitcoin as a viable investment opportunity, enabling more people, including those adhering to Sharia law, to access virtual currencies.

Al Abraj intends to collaborate with 10X Capital to identify innovative methods for securing funds to buy even more Bitcoin. The investment firm has played a crucial role in several significant digital asset transactions and is expected to share its expertise and knowledge with Al Abraj. The decision to adopt Bitcoin was made with scrutiny of local financial rules and legislation. Bahrain’s supportive regulations may have encouraged Al Abraj to take on such an initiative. Al Abraj emphasized its commitment to upholding every regulation concerning cryptocurrency reporting and trading. A specialized committee will be formed to monitor the group’s strategies and actions regarding Bitcoin. The policies will cover matters such as asset security, accurate disclosure practices and potential risks associated with holding Bitcoin.

The head of the Bitcoin Treasury Committee said this decision shows the company’s future direction. Moreover, it aims to benefit shareholders through smart financial strategies. Although the media has not widely covered the news, the company remains focused on modern finance. As a result, it plans to embrace digital innovation for the long term. As a result, Al Abraj’s decision could indicate that the region as a whole is starting to embrace innovations in the digital assets field. More firms in the Middle East are likely to adopt similar strategies as cryptocurrencies gain popularity across the world. As a result, the progressive attitude toward financial innovation in Bahrain could fuel this trend across the region.