South Africa’s Altvest to raise $210 million for Bitcoin treasury reserve

South Africa’s Altvest Capital Ltd. is seeking to raise $210 million to purchase Bitcoin and hold it as a treasury reserve, a move that would make it the first listed African company to formally adopt the digital asset as its core balance sheet holding.

What they’re saying

Altvest founder and Chief Executive Officer Warren Wheatley said:

“Pension funds, retirement annuities, unit trusts and others usually cannot directly buy Bitcoin, but by buying our shares, they will now be able to get exposure in a regulated way through equity.”

The board is also of the view that its Bitcoin Treasury Strategy is aligned with the company’s core mandate of democratising access to alternative investment opportunities.”

Quick facts

• The Johannesburg-based firm will rename itself Africa Bitcoin Corp. and hold the cryptocurrency on its balance sheet, CEO Warren Wheatley said in an interview.
• The firm plans to raise funds from both overseas and local investors whilst seeking international listings.
• Wheatley said the company will also list on African exchanges, including Botswana, Kenya and Namibia, to provide easier Bitcoin exposure across the continent.
• Altvest’s subsidiary, Altvest Bitcoin Strategies Pty Ltd., will work with CAEP Asset Managers Pty Ltd., which holds authorisation from South Africa’s Financial Sector Conduct Authority to provide cryptocurrency services.

Key context

• Altvest, valued at 52.8 million rand ($3 million) on the Johannesburg Stock Exchange, is betting on a strategy that has fueled sharp growth for international firms such as Strategy in the U.S. and Metaplanet in Japan.
• Strategy’s market capitalization has surged above $120 billion after the company aggressively acquired Bitcoin over the years.
• Altvest is likely trying to follow that playbook by raising funds to build a Bitcoin reserve while hoping the move will attract long-term investors and boost valuations.
• However, Bloomberg reports that Altvest shares have lost 25% over the past 12 months, even as Bitcoin surged 95% in the same period.

Why it matters

• South Africa has taken steps to clarify rules around digital assets, granting licenses to crypto service providers under the Financial Sector Conduct Authority. managing a cryptocurrency treasury
• This regulatory clarity has encouraged more institutions to test exposure to Bitcoin and other digital assets in a compliant environment.
• If successful, Altvest’s strategy could set a precedent for other African listed companies to consider digital assets as part of their treasury strategy.
• However, the plan carries substantial risks. Smaller companies attempting to replicate Strategy’s success often struggle with Bitcoin’s volatility and the complexities of managing a cryptocurrency treasury.
• Altvest’s modest market capitalisation raises questions about its ability to execute such an ambitious fundraising plan effectively.