Altvest Capital Ltd. has announced its intention to become the first publicly traded company in Africa to adopt Bitcoin as its main treasury reserve asset, following a strategy that led to a staggering 2,400% increase in the value of Michael Saylor’s Strategy.com since it began purchasing the cryptocurrency.
The company has already acquired one Bitcoin and is seeking regulatory approval to raise approximately 200 million rand ($10 million) by issuing shares to bolster its treasury reserves, according to Chief Executive Officer Warren Wheatley in a recent interview. He noted that a final decision on the fundraising initiative has yet to be made. As of Thursday, Bitcoin was trading at around $97,000.
The approach of raising funds to purchase Bitcoin, a tactic first implemented by Saylor in 2020, is gaining traction as cryptocurrencies become more widely accepted. Saylor’s successful investment in Bitcoin has significantly increased the market capitalization of his company, previously known as MicroStrategy Inc., to about $82 billion, while his personal wealth has risen to $7 billion. “We view Bitcoin as a strategic reserve asset that enhances our treasury portfolio and serves as a safeguard against economic instability and currency devaluation, especially with respect to the South African Rand,” Wheatley stated. His firm operates a platform that facilitates fundraising for privately owned businesses. Despite the growing trend of using corporate funds—or even borrowed capital—to invest in Bitcoin, some critics argue that the cryptocurrency’s volatility poses a risk to companies’ financial stability. However, Altvest’s board conducted a risk assessment and concluded that Bitcoin fits well within its alternative asset investment strategy.
Additionally, Altvest aims to acquire a stake in South Africa’s national rugby team, the Springboks, who are the current world champions. Wheatley mentioned that customers will have the opportunity to invest in the team through the company’s platform.
