AltVest Capital Adds Bitcoin to Treasury Reserves, Reflecting Growing Acceptance of Cryptocurrency in Africa

AltVest Capital, a South African-listed investment holding company, has revealed plans to add Bitcoin to its treasury reserves as more entities across Africa explore this strategy.

AltVest Capital, a South African-listed investment holding company, has announced plans to add Bitcoin to its treasury reserves. This move comes amid a growing trend among entities in Africa to allocate a portion of their reserves to the flagship cryptocurrency.

The decision by AltVest is part of a broader strategy to preserve shareholder value, mitigate currency depreciation risks and gain exposure to a globally recognized store of value, according to a statement to investors.

As a first step, AltVest, through its fully owned subsidiary, AltVest Bitcoin Strategies, has purchased 1.00464 Bitcoin at a cost of R1.81 million ($98,491).

This initiative aligns with a decision made years ago by MicroStrategy (now Strategy) CEO Michael Saylor to allocate substantial funds to Bitcoin for the company’s treasury. As of Feb. 10, 2025, Strategy held 478,740 Bitcoins, valued at an astonishing $47 billion at the time.

According to AltVest, its decision to invest in Bitcoin is driven by the cryptocurrency’s “unique and proven” qualities, including:

– Scarcity: Bitcoin has a limited supply of 21 million coins, making it inherently scarce and valuable.

– Fungibility: Each Bitcoin is identical and can be easily exchanged for another, facilitating liquidity and ease of use.

– Durability: Bitcoins are stored on a decentralized blockchain network, making them highly resistant to theft, damage or loss.

– Acceptability: Bitcoin is widely accepted as a payment method and store of value by a growing network of merchants, institutions and individuals around the world.

– Portability: Bitcoins can be easily transported and stored in digital wallets, allowing for convenient and secure movement of funds.

– Verifiability: Transactions on the Bitcoin blockchain are transparent and can be easily verified by anyone, enhancing trust and reducing the risk of fraud.

Following the announcement, AltVest’s share price remained steady at R6.50 ($0.35) shortly after markets opened in Johannesburg on Feb. 21, 2025.

“The board of Altvest has conducted a comprehensive risk assessment and determined that bitcoin aligns with Altvest’s alternative asset investment philosophy. It offers long-term growth potential while serving as a hedge against macroeconomic risks, particularly the depreciation of the Rand.

Additionally, Altvest has implemented a structured risk management framework to monitor and optimise Bitcoin exposure in line with treasury objectives,” the company said.

Furthermore, AltVest has stated that it has no plans to invest in cryptocurrencies other than Bitcoin.

“Altvest will continue to evaluate market conditions and technological advancements but currently views Bitcoin as the only digital asset that meets its strict investment criteria for a long-term treasury allocation.

It is the only truly decentralised, scarce and globally recognised digital asset that aligns with Altvest’s investment philosophy. We see Bitcoin as a strategic reserve asset that enhances our treasury portfolio while providing a hedge against economic instability and currency depreciation.”

Interestingly, AltVest’s board is led by prominent South African tech entrepreneur and self-proclaimed “Bitcoin maximalist” Stafford Masie, who has been a vocal advocate for Bitcoin to be included in the country’s strategic reserve.

However, such a move appears unlikely and has been met with criticism from the South African Reserve Bank Governor, Lesetja Kganyago, who reportedly stated that bitcoin made no more sense as a reserve asset than beef or apples.

Despite the setback, the crypto industry has invested over $119 million to advance legislation favorable to the sector, according to a report by Reuters.

“I have a problem with a lobby that says government should hold bitcoin,” Kganyago said, adding that the central bank remained opposed to cryptocurrencies being included in the country’s reserves.

Kganyago also raised concerns about the crypto industry’s efforts to sway financial regulation, warning that such actions could lead to ‘regulatory capture.’

Meanwhile, Binance Exchange has surpassed 200 million registered users, which now accounts for approximately 36% of the global cryptocurrency user base, according to data from Footprint Analytics.

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AltVest Capital, a South African-listed investment holding company, has revealed plans to add Bitcoin to its treasury reserves as more entities across Africa explore this strategy.

This trend reflects a broader acceptance of cryptocurrency as a legitimate asset class driven by the potential for high returns and a hedge against inflation. In December 2024, the Kenya National Fire Brigades Association (KENFIBA) became the first labor union in Kenya, and among the first on the continent, to adopt a Bitcoin reserve.

As an initial step, AltVest, through its fully owned subsidiary, AltVest Bitcoin Strategies, has purchased 1.00464 Bitcoin for R1.81 million ($9