Bahrain Firm’s Bitcoin Treasury: A MENA First
Al Abraaj Restaurants Group, listed on the Bahrain Bourse, has made history as the first publicly listed company in the Middle East to incorporate Bitcoin into its corporate treasury. This strategic move, facilitated by 10X Capital, aims to establish a Sharia-compliant pathway for Bitcoin adoption within the Islamic world. The company intends to increase its Bitcoin holdings, mirroring the strategies of companies like MicroStrategy and Tesla. The partnership with 10X Capital also involves creating a $710 million vehicle, focused on Bitcoin treasury strategies, for listing on Nasdaq. This initiative signals a growing interest in Bitcoin as a long-term, hard-cap monetary asset within the Gulf region. While the initial Bitcoin allocation remains undisclosed, Al Abraaj’s commitment suggests further purchases are planned. The company explicitly stated its dedication to fulfilling Islamic finance mandates, highlighting Bitcoin’s potential compatibility with Sharia principles. This move opens doors for investors in Saudi Arabia, Kuwait, Qatar, Oman, and beyond to access Bitcoin through ABRAAJ shares. Al Abraaj’s decision is considered a bold move, referencing the success of other companies like MicroStrategy and Tesla, which also adopted Bitcoin treasury strategies and experienced positive market responses. The company’s actions are being closely watched as an indicator of broader Bitcoin adoption within the Middle East’s financial landscape. The success of this strategy could influence other companies in the region to consider similar investments. The partnership underscores the growing interest in Bitcoin as a viable asset for institutional investors and the potential for its integration into traditional financial systems within the Middle East.
(Source: https://bitcoinist.com/bitcoin-treasury-fever-hits-the-middle-east/)
