Key Points
- South Africa’s Altvest Capital becomes the first African listed company to incorporate Bitcoin into its treasury.
- The company has acquired one Bitcoin and plans to raise funds for further acquisitions.
Altvest Capital, a South African firm, has made history by becoming the first listed African company to incorporate Bitcoin into its treasury.
The company announced on Friday that it has adopted Bitcoin as a strategic treasury asset, marking a significant milestone in the integration of cryptocurrencies into corporate financial strategies in Africa.
Altvest Capital’s Bitcoin Acquisition
To signify its entry into the crypto economy, Altvest Capital purchased one Bitcoin, valued at approximately 1.8 million rand (around $98,200). This acquisition symbolizes the company’s commitment to embracing digital assets.
The company has also indicated its intention to raise up to 200 million rand ($10 million) by selling some of its shares to increase its Bitcoin acquisition.
Altvest views Bitcoin as more than just a store of value. The company believes Bitcoin has the potential to transform its financial reserves by providing a hedge against market inflation and other economic uncertainties.
The CEO of Altvest Capital, Warren Wheatley, stated in an interview that Bitcoin is seen as a strategic reserve asset that enhances the company’s treasury portfolio and provides a hedge against economic instability and currency depreciation.
The company has also filed with the relevant authorities and regulators to list Bitcoin-linked equity instruments. This move is aimed at providing investors with direct exposure to Bitcoin’s performance through traditional financial markets.
Bitcoin: The Preferred Digital Asset
Wheatley further explained why the company chose Bitcoin over other digital assets. He stated that Bitcoin’s decentralized nature sets it apart from other cryptocurrencies.
Despite Bitcoin’s unique characteristics, Altvest plans to remain committed to the crypto asset and does not have plans to explore other options like Ethereum or Solana. However, the company will continue to evaluate market conditions and technological advancements in the altcoin space.
Altvest’s move aligns with a growing global trend of corporations incorporating Bitcoin into their treasury reserves. This trend was started by Strategy, a business intelligence company, in August 2020. The company entered the crypto economy with the purchase of 21,454 BTC, worth approximately $250 million at the time.
