The news

• Altvest Capital becomes the first publicly listed African company to integrate Bitcoin into its treasury.
• The firm has purchased one Bitcoin and plans to raise $10 million to increase its holdings.
• Altvest is seeking approval from financial authorities to proceed with its fundraising efforts.

South African investment firm Altvest Capital has announced its decision to adopt Bitcoin as a strategic treasury asset, marking a significant milestone as the first publicly listed company in Africa to do so. 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’s CEO, Warren Wheatley, emphasised that the company’s Bitcoin strategy is focused solely on the leading cryptocurrency, with no current plans to invest in alternative digital assets. This approach mirrors 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. This move 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.