Johannesburg-based Altvest Capital is seeking regulatory approval to raise $10 million as it looks to make Bitcoin its primary reserve asset. If successful, the company would become the first publicly listed firm in Africa to adopt Bitcoin as its main treasury reserve.
Bitcoin as a Strategic Reserve Asset
In a Feb. 21 interview with Bloomberg, Altvest Capital CEO Warren Wheatley confirmed that the company has already purchased one Bitcoin and is now awaiting regulatory approval to raise additional funds by selling shares. While no final decision has been made, Wheatley emphasized that Bitcoin aligns with the firm’s long-term financial strategy.
Founded in 2021, Altvest Capital specializes in facilitating fractional ownership of unlisted assets. The company views Bitcoin as a “strategic reserve asset” that can enhance its treasury portfolio while serving as a hedge against economic instability and currency depreciation.
Wheatley also noted that Altvest Capital’s board has conducted a thorough risk assessment and believes that Bitcoin complements its broader investment approach.
Regulatory Landscape in South Africa
South Africa has been making strides toward becoming a hub for crypto-related businesses. As of April 2024, the Financial Sector Conduct Authority (FSCA) has approved more than 70 crypto asset service providers, including major local firms such as Luno and VALR. However, the FSCA’s registry does not include major international exchanges like Coinbase and Binance, raising concerns over the country’s regulatory approach.
If approved, Altvest Capital’s Bitcoin treasury strategy could set a precedent for other African companies looking to integrate digital assets into their financial operations. The company’s move reflects the growing interest in Bitcoin as a treasury asset, similar to trends seen among global firms exploring cryptocurrency for portfolio diversification.
