South African Investment Firm Altvest Capital Adopts Bitcoin as Strategic Treasury Asset

The Johannesburg-based firm has acquired one Bitcoin, valued at approximately 1.8 million rand ($98,200), and is seeking regulatory approval to raise an additional $10 million through a share sale to expand its Bitcoin holdings.

Altvest Capital, an investment firm based in South Africa, has announced that it will be adopting Bitcoin as a strategic treasury asset, making history as the first publicly listed company in Africa to do so. The firm, which is listed on the Johannesburg Stock Exchange, has acquired one Bitcoin, currently valued at approximately 1.8 million rand ($98,200).

In a statement released on Monday, Altvest said that it is also planning to raise an additional $10 million through a share sale to further increase its Bitcoin holdings, subject to regulatory approval.

“The company's Bitcoin strategy will focus on the leading cryptocurrency, with no current plans to invest in alternative digital assets,” the statement reads.

This approach is similar to the strategy employed by U.S.-based firm MicroStrategy, which began accumulating Bitcoin in 2020 as a primary treasury reserve asset.

The decision to incorporate Bitcoin into Altvest's treasury is driven by a desire to preserve shareholder value, mitigate risks associated with currency depreciation, and gain exposure to a globally recognised store of value, the firm said.

“We believe that Bitcoin aligns well with our mandate to generate sustainable returns for our shareholders over the long term and are excited to be the first listed company in Africa to integrate Bitcoin into our treasury strategy,” Altvest CEO Warren Wheatley said in the statement.

The move by Altvest comes at a time when South Africa is experiencing increased regulatory engagement with the cryptocurrency sector.

In March 2024, the Financial Sector Conduct Authority (FSCA) approved 59 cryptocurrency companies to operate within the country, reflecting a growing acceptance of digital assets in the financial ecosystem.

Furthermore, the adoption of cryptocurrencies in South Africa has been on the rise. By October 2024, over 31,000 merchants in the country began accepting crypto payments through platforms like Luno, indicating a broader integration of digital currencies into everyday transactions.

Altvest's initiative not only positions the company at the forefront of financial innovation in Africa but also signals a potential shift in how African firms approach asset management and value preservation.

As the regulatory landscape continues to evolve, Altvest's pioneering move may pave the way for other companies on the continent to consider similar strategies involving digital assets.

While the volatility of cryptocurrencies remains a consideration, Altvest's strategic adoption of Bitcoin underscores a growing trend among corporations worldwide to explore digital assets as viable components of their financial strategies.

As more African companies observe Altvest's approach, it could lead to a broader reassessment of traditional treasury management practices across the continent.