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South African investment firm Altvest Capital has announced plans to become the first company in Africa to hold Bitcoin as a primary treasury reserve asset, following US technology firm Strategy.
South African Firm Altvest to Accept Bitcoin as Treasury Reserve Asset
Altvest has already made a bitcoin purchase and has applied for regulatory approval to raise 200 million rand ($10 million) by issuing shares to increase its bitcoin holdings, CEO Warren Wheatley said in an interview. However, no final decision has yet been made on the capital raise.
Altvest adopts a strategy pioneered by Strategy co-founder Michael Saylor, who began accumulating Bitcoin in 2020.
Since then, Strategy’s stock has risen more than 2,400%, giving the company a market value of $82 billion and Saylor’s personal fortune of nearly $7 billion.
“We view Bitcoin as a strategic reserve asset that enhances our treasury portfolio while providing a hedge against economic instability and the depreciation of the South African rand,” Wheatley said.
Despite Bitcoin’s growing adoption among corporations, critics warn that its volatility could destabilize corporate balance sheets.
However, Altvest stated that its board of directors conducted a risk assessment and found that Bitcoin was compatible with its alternative asset investment strategy.
The move by Altvest, the first African company to integrate Bitcoin into its treasury strategy, signals growing institutional interest in digital assets on the continent.
*This is not investment advice.
Continue Reading: South Africa’s Michael Saylor Revealed! Investment Firm Wants to Make Bitcoin a Reserve Asset!
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