South Africa's Altvest Takes Steps to Accumulate $210 Million Bitcoin Reserves

Johannesburg-Based Altvest Capital Ltd. Announces Plans to Raise $210 Million for Bitcoin Purchase

Altvest Capital Ltd., a Johannesburg-based firm, has revealed its ambitious plan to raise $210 million to purchase Bitcoin. The announcement was made by Warren Wheatley, the founder and CEO of Altvest Capital Ltd., in a recent interview.

If successful, Altvest Capital Ltd. would become the first listed African company to formally adopt Bitcoin as a core balance sheet holding. Upon rebranding as Africa Bitcoin Corp., the firm intends to hold the cryptocurrency on its balance sheet.

The company's rebranding to Africa Bitcoin Corp. is part of its plans. Africa Bitcoin Corp. does not currently have a listed exchange, but it aims to list on African exchanges, including Botswana, Kenya, and Namibia, to provide easier Bitcoin exposure across the continent. The company also plans to raise funds from both overseas and local investors.

Altvest's strategy mirrors that of international firms like Strategy in the U.S. and Metaplanet in Japan, which have adopted similar growth strategies. The firm aims to follow Strategy's playbook by raising funds to build a Bitcoin reserve, hoping to attract long-term investors and potentially boost valuations.

South Africa has granted licenses to crypto service providers under the Financial Sector Conduct Authority, providing regulatory clarity for managing digital assets. This regulatory clarity has encouraged more institutions to explore Bitcoin and other digital assets in a compliant environment.

Altvest's subsidiary, Altvest Bitcoin Strategies Pty Ltd., will collaborate with CAEP Asset Managers Pty Ltd., a South African firm authorized to provide cryptocurrency services.

However, Altvest's modest market capitalization raises questions about its ability to execute such an ambitious fundraising plan effectively. Despite Bitcoin surging 95% over the past 12 months, Altvest's shares have lost 25% during the same period, according to Bloomberg reports.

The plan to manage a cryptocurrency treasury carries substantial risks, particularly due to Bitcoin's volatility and the complexities involved. There is no information available about a company in South Africa attempting to become a publicly traded company with a Bitcoin reserve as its core asset on Africa's stock exchange.

This move could establish a precedent for other African listed companies to consider digital assets as part of their treasury strategy, should Altvest Capital Ltd. successfully execute its plan.