Digital Currency Expansion in MENA Region: Al Abraaj Embraces Bitcoin Treasury Methodology
The Middle East and North Africa (MENA) region is witnessing a surge in the adoption of Bitcoin as a corporate treasury asset, with several companies embracing the cryptocurrency as a long-term reserve of value.
Al Abraaj Restaurant Group, based in Bahrain, has made history by becoming the first publicly-traded company in the MENA region to acquire Bitcoin as a treasury asset. The company partnered with U.S.-based 10X Capital for the purchase, marking a significant step forward in the region's growing acceptance of Bitcoin.
Abdulla Isa, chairman of the Bitcoin Treasury Committee of Al Abraaj, expressed his enthusiasm for this initiative, highlighting the company's commitment to innovation and value for investors.
In a similar move, Méliuz, a publicly traded company in Brazil, has become the first company in the country to offer Bitcoin treasury services and has acquired 274.52 bitcoins for $28.4 million. This move positions Méliuz as a pioneer of digital asset adoption in the Brazilian market.
Capital B, a Bitcoin treasury company, has set up a hub in Abu Dhabi, UAE, and has already bought nearly 2 BTC with plans to acquire 3,000 BTC as part of its Bitcoin treasury strategy. Another UAE-based company, Phoenix Group, launched a digital asset treasury valued at over $150 million, primarily in Bitcoin and Solana, signifying a strong commitment to Bitcoin as a strategic reserve asset.
These companies join MicroStrategy, led by Saylor, which holds over 568,840 BTC and is the world's largest corporate holder of the cryptocurrency.
The growing institutional adoption of Bitcoin is further legitimizing the cryptocurrency and facilitating its adoption by the general public. This trend is also a reflection of a paradigm shift in how companies perceive cryptocurrencies, with more and more companies seeing Bitcoin as a long-term reserve of value, superior to existing assets like gold.
The National Bank of Bahrain has also entered the fray, launching the first Bitcoin investment fund, allowing investors to access Bitcoin without the need to buy or store the cryptocurrency directly. This move welcomes another institutional investor into the Bitcoin ecosystem.
Abu Dhabi is emerging as a key hub for Bitcoin innovation, hosting the Bitcoin MENA Conference where global industry leaders share insights on Bitcoin's future. The recent adoption of Bitcoin by Al Abraaj could encourage other companies in the MENA region to consider cryptocurrencies, fostering the growth of the crypto ecosystem in the area and opening broader access to Bitcoin to the Islamic world.
Here is a summary of MENA companies with Bitcoin treasury adoption:
| Company | Country | Bitcoin Treasury Status | |--------------------------|-------------------|-----------------------------------------------------------------| | Al Abraaj Restaurant Group | Bahrain | First publicly traded MENA company with Bitcoin treasury asset | | Capital B | UAE (Abu Dhabi) | Bitcoin treasury company setting up regional hub, holds BTC | | Phoenix Group | UAE (Abu Dhabi) | Digital asset treasury > $150M, holds 514 BTC |
As more companies in the MENA region adopt Bitcoin, it is clear that we are witnessing a growing trend towards integrating Bitcoin in corporate treasuries. Al Abraaj's intention to allocate a significant portion of its corporate treasury to Bitcoin in the future suggests that this trend is likely to continue.
Méliuz's acquisition of Bitcoin was made at an average price of $103,604 per BTC unit, reinforcing the company's commitment to the adoption of digital assets. Al Abraaj's adoption of Bitcoin is part of a growing trend of cryptocurrency institutionalization, with more and more companies and investors recognizing the potential of Bitcoin as a reserve asset.
[1] Source: https://www.coindesk.com/business/2021/03/18/al-abraaj-becomes-first-publicly-traded-company-in-the-gcc-to-acquire-bitcoin-as-a-treasury-asset/ [2] Source: https://www.coindesk.com/business/2021/03/18/capital-b-sets-up-bitcoin-treasury-company-in-abu-dhabi-with-3000-btc-target/ [3] Source: https://www.coindesk.com/business/2021/03/18/phoenix-group-launches-digital-asset-treasury-worth-over-150m-in-bitcoin-and-solana/ [4] Source: https://www.arabianbusiness.com/technology/410336-abu-dhabi-to-host-bitcoin-mena-conference-in-april [5] Source: https://www.coindesk.com/business/2021/03/18/bitcoin-treasury-adoption-grows-in-the-mena-region/
- Companies in the MENA region, such as Al Abraaj, Capital B, and Phoenix Group, are investing in Bitcoin as a long-term reserve of value, signifying a growing trend of cryptocurrency institutionalization.
- The National Bank of Bahrain has launched the first Bitcoin investment fund, which allows investors to access Bitcoin without the need to buy or store it directly, broadening Bitcoin's accessibility in the Islamic world.
- In Brazil, Méliuz has become the first company to offer Bitcoin treasury services, positioning itself as a pioneer of digital asset adoption, with an investment of 274.52 bitcoins for $28.4 million.
- The growing acceptance of Bitcoin in the MENA region, like that of Al Abraaj, opens up new opportunities for business, lifestyle, education-and-self-development, entertainment, general-news, sports, finance, casino-and-gambling, and other industries, by fostering the growth of the crypto ecosystem.
