- Altvest Capital is the first African public firm to add Bitcoin as a treasury asset.
- The company seeks approval to raise $10 million to increase its Bitcoin reserves.
- Crypto use is rising in South Africa as businesses and retailers accept digital payments.
Altvest Capital, a Johannesburg-based investment firm, has become the first publicly traded African corporation to integrate Bitcoin into its treasury holdings. The firm recently acquired one bitcoin for 1.8 million rand ($98,200) and is seeking regulatory approval to raise $10 million through a share sale to expand its reserves.
Strategic Move Amid Economic and Regulatory Shifts
Altvest Capital views Bitcoin as a hedge against economic instability and currency depreciation, aligning with a growing trend among corporations adopting digital assets. CEO Warren Wheatley stated that the firm has no plans to diversify into other cryptocurrencies and remains focused solely on Bitcoin.
The company’s strategy mirrors that of Strategy (formerly MicroStrategy), a U.S.-based firm that began accumulating bitcoin as a treasury reserve asset in 2020. Altvest’s board has conducted a thorough risk assessment and determined that Bitcoin aligns with its alternative asset strategy. This move also comes as South Africa strengthens its regulatory framework for digital assets.
The Financial Sector Conduct Authority (FSCA) granted operational approval to approximately 59 crypto firms in March 2024, reflecting the country’s growing acceptance of digital currencies. However, global exchanges like Coinbase and Binance are absent from the country’s regulatory listings, which raises questions about South Africa’s crypto oversight.
Bitcoin Adoption in South Africa Gains Traction
Crypto adoption in South Africa is growing rapidly, with over 31,000 retailers accepting crypto payments by October 2024. Platforms like Luno have facilitated widespread digital currency transactions, contributing to greater mainstream adoption.
Wheatley emphasized that Altvest’s Bitcoin strategy aligns with its long-term investment vision and commitment to preserving value. He said Bitcoin is an internationally recognized place to put value, as it offers exposure to a decentralized financial system.
Additionally, Altvest plans to purchase a stake in the Springboks, South Africa’s national rugby team and reigning world champions. This investment aligns with its strategy to diversify its portfolio while maintaining financial stability.
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Balancing Risk and Rewards in Industrial Bitcoin Trusts
The practice of using BTC as a reserve remains controversial, sparking debate due to its volatility. Critics argue that such holdings pose significant risks to corporate balance sheets, especially when funded by debt. However, the company’s board has reaffirmed its confidence in Bitcoin, emphasizing its potential to hedge against currency devaluation.
As crypto regulations evolve and businesses explore digital asset strategies, the question remains: Will more African firms follow Altvest Capital’s lead in integrating Bitcoin into their financial structures?
