Altvest is gearing up to raise $210 million to create a Bitcoin treasury in South Africa and will rebrand as Africa Bitcoin Corp.
As reported by Bloomberg, this move allows Altvest to become the first listed African firm to formally embrace Bitcoin as its treasury reserve asset.
With a market value of approximately $3 million, the firm aims to replicate the success of early adopters in the U.S., such as MicroStrategy and Japan’s Metaplanet, which have seen their market capitalization rise through the strategic accumulation of Bitcoin.
The new branding indicates a strategic coherence with Bitcoin’s potential for long-term corporate value and financial planning as a company treasury reserve asset.
Bitcoin as a Reserve Asset
Altvest announced that it will hold Bitcoin directly on its balance sheet and will recognize Bitcoin as a strategic reserve asset similar to gold or cash.
“We feel that it is important to be a long-term holder of Bitcoin and our goal is to bring regulated exposure to Bitcoin through the equity markets, especially in Africa, where direct access to Bitcoin/cryptocurrency is very limited.” Founder and CEO Warren Wheatley said.
Pension funds, retirement annuities, unit trusts, and others cannot normally buy Bitcoin directly, but by buying a share of our equity, they will now have exposure in a regulated way.
This positioning has the potential to establish Africa Bitcoin Corp as an entry point for both retail and institutional investors throughout the continent, with the potential to interact and participate in the Bitcoin ecosystem.
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Opening up Access via Regional and Global Listings
The company is seeking to raise capital from local and international investors to fund its ambitious Bitcoin treasury strategy.
To increase accessibility, Altvest plans to list on multiple African exchanges, including those in Namibia, Botswana, and Kenya, as well as explore international exchange opportunities.
It may also increase liquidity and build investor confidence in Altvest as it transitions into Africa Bitcoin Corp.
Market Dynamics and the Larger Trend of Bitcoin Adoption
Altvest’s announcement comes at a time when Bitcoin is trading at $110,942, which is almost double what it was a year ago.
In contrast, its own share price has declined 25% in that same time period, a difference the company hopes to narrow through its Bitcoin strategy.
Altvest Bitcoin Strategies Pty Ltd. will manage the crypto initiative under the auspices of CAEP Asset Managers Pty Ltd. and regulation from South Africa’s Financial Sector Conduct Authority.
The compliance structure is designed to provide confidence to investors and demonstrate that Altvest’s pivot into Bitcoin is not speculative, but rather a well-structured financial plan.
Corporate Bitcoin Holdings Indicate A Growing Trend of Institutional Acceptance for Bitcoin
Altvest’s entry into Bitcoin holdings demonstrates alignment with a trend that is seeing companies globally add Bitcoin to the growing number of treasury reserve assets.
Public companies currently hold more than 1 million BTC, which represents a significant proportion of the digital asset’s fixed supply.
In the public sector, MicroStrategy is in the lead with 638,460 BTC, followed by MARA Holdings (52,477 BTC), and new public entrants such as XXI (43,514 BTC) and the Bitcoin Standard Treasury Company (30,021 BTC).
Other corporate holders include Bullish (crypto exchange), Metaplanet, Riot Platforms, Coinbase, and CleanSpark, which have also recently turned part of their corporate treasury into BTC.
With only 5.2% of mined remaining, analysts are concerned about a supply shock with the accelerating corporate adoption of Bitcoin.
Altvest’s rebranding and treasury initiative, therefore, positions them not only as founders in Africa but also as part of a global momentum in the corporate treasury space regarding Bitcoin and cryptocurrency adoption.
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