South African investment firm Altvest Capital has become the first publicly listed African company to incorporate Bitcoin into its treasury. The Johannesburg-based firm has acquired one Bitcoin, valued at around 1.8 million rand ($98,200), and plans to raise $10 million through a share sale to further increase its Bitcoin holdings. Altvest is currently seeking approval from financial authorities to proceed with this fundraising effort.
Altvest’s CEO, Warren Wheatley, emphasized that the company’s Bitcoin strategy focuses exclusively on the leading cryptocurrency, without any plans to invest in other digital assets. This move mirrors U.S. firm MicroStrategy’s 2020 decision to use Bitcoin as a primary treasury reserve asset.
The company’s adoption of Bitcoin aims to preserve shareholder value, mitigate currency depreciation risks, and provide exposure to a globally recognized store of value. This decision coincides with South Africa‘s increased regulatory engagement in the cryptocurrency space, with the Financial Sector Conduct Authority (FSCA) approving 59 cryptocurrency companies to operate within the country as of March 2024.
Cryptocurrency adoption in South Africa has grown steadily, with over 31,000 merchants accepting crypto payments through platforms like Luno by October 2024. Altvest’s pioneering move signals a potential shift in how African firms approach asset management, with Bitcoin’s integration into treasury strategies potentially influencing other companies to follow suit.
While cryptocurrencies remain volatile, Altvest’s decision highlights a growing global trend of corporations exploring digital assets as viable financial strategies. As Altvest paves the way, more African companies may reconsider their traditional treasury management practices in favor of incorporating digital currencies.
