South African investment firm Altvest Capital has announced plans to raise $10 million in its initiative to adopt Bitcoin (BTC) as its primary treasury reserve asset.
Altvest would become the first publicly listed company in Africa to integrate Bitcoin into its financial strategy if approved.
In an interview with Bloomberg, CEO Warren Wheatley confirmed that the Johannesburg-based firm has already purchased one Bitcoin and is now in discussions with regulators about a potential 200 million rand ($10 million) capital raise. The funding, secured through a share sale, would be used to expand the company’s Bitcoin holdings.
While a final decision on the capital raise is pending, Wheatley emphasized Bitcoin’s role as a “strategic reserve asset” that could strengthen Altvest’s treasury portfolio and hedge against economic instability and currency depreciation, particularly the declining South African Rand.
“We see Bitcoin as a strategic reserve asset that enhances our treasury portfolio while providing a hedge against economic instability and currency depreciation, particularly the depreciation of the South African Rand,” Wheatley stated. He added that Altvest’s board has already conducted a risk assessment and determined that Bitcoin is a suitable addition to its holdings.
Altvest’s move mirrors the strategy pioneered by Michael Saylor’s MicroStrategy, now rebranded as “Strategy”, which has seen its market value surge 2,400% since adopting Bitcoin in 2020. The company recently announced a new plan dubbed “21/21 Plan” to raise $42 billion over the next three years to further expand its Bitcoin reserves.
Meanwhile, Altvest’s Bitcoin initiative comes as South Africa continues to strengthen its digital asset regulations. As of April 2024, the Financial Sector Conduct Authority (FSCA) has approved over 70 crypto asset service providers, including leading local exchanges Luno and VALR.
However, the absence of major global platforms like Coinbase and Binance from South Africa’s regulatory framework has raised concerns about the country’s openness to international crypto firms.
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