South African investment firm Altvest Capital has made history by becoming the first publicly listed company in Africa to buy bitcoin as a strategic treasury asset. The company recently bought one bitcoin and plans to increase its holdings significantly.
Altvest Capital, based in Johannesburg, is taking a big step into the Bitcoin space by adding the scarce digital asset to its treasury.
The company sees Bitcoin as a hedge against economic volatility, saying it believes bitcoin is a valuable asset that protects its holders from inflation and the depreciation of the fiat currencies. CEO Warren Wheatley said:
“Bitcoin is fundamentally different from other digital assets. It is the only truly decentralized, scarce, and globally recognized digital asset that aligns with Altvest’s investment philosophy.”
Altvest believes bitcoin has long-term growth and security which makes it an attractive option for corporate treasury reserves.
Unlike traditional reserve assets such as cash or gold, bitcoin is not subject to the same inflationary pressures so it’s a good choice for companies that want to safeguard their future.
Along with its initial bitcoin purchase, Altvest is applying to raise $10 million through a stock sale to buy more bitcoin. This will allow the company to make bitcoin its primary treasury reserve asset.
“We have applied to the regulators to have BTC-linked equity instruments listed,” said Wheatley.
The company is working within the legal framework to make sure it complies while rolling out its bitcoin strategy. If approved, the stock sale will make Altvest one of the biggest corporate holder of bitcoin in Africa.
Altvest Capital’s strategy is clear: Bitcoin is a better store of value than traditional currencies and other digital assets. The company has ruled out investing in altcoins citing concerns over their inflationary supply mechanism, centralized control and regulatory uncertainty.
Wheatley said, “(Bitcoin) aligns with Altvest’s investment philosophy as the only truly decentralized and scarce asset that enhances our treasury portfolio.”
The company’s announcement mentions other companies have followed this path, Strategy in the US and Metaplanet in Japan, which have made big bitcoin purchases. Now Altvest is the first in Africa to adopt bitcoin as part of its treasury management strategy.
Altvest Capital’s move may trigger other African companies to look into bitcoin as a treasury asset. According to Wheatley, countries like Rwanda and Kenya, with their tech literate populations, may follow soon.
Africa has already shown interest in digital assets with many individuals and businesses using bitcoin for transactions and remittances. If more companies adopt bitcoin as a reserve asset, it will lead to more corporate participation in the bitcoin space across the continent.
Altvest Capital’s decision to buy bitcoin is a big deal for Africa’s corporate landscape. As the first publicly listed company on the continent to hold bitcoin as a treasury reserve, Altvest is blazing the trail for corporate adoption of the digital asset.
