Investment firm Altvest Capital has announced plans to make Bitcoin the primary reserve asset of its treasury. The company will be the first on the African continent to incorporate cryptocurrency into its corporate strategy, reports Bloomberg.
Altvest has already purchased 1 BTC and has applied to regulatory authorities to raise approximately 200 million rand (~$10 million) through a share sale, according to CEO Warren Wheatley. He noted that a final decision on the fundraising has yet to be made.
Altvest is adopting a strategy popularised by Strategy’s founder (formerly MicroStrategy), Michael Saylor. The entrepreneur’s company began acquiring Bitcoin in 2020 and currently holds 478,740 BTC valued at over $47 billion.
“We view Bitcoin as a strategic reserve asset that will strengthen our treasury portfolio and protect it from economic instability, as well as currency depreciation, particularly of the South African rand,” said Wheatley.
The method of using corporate funds, and sometimes loans, to purchase Bitcoin is gaining traction. However, it faces criticism due to the volatility of the leading cryptocurrency, which can weaken company balances. Altvest has conducted a risk assessment and concluded that Bitcoin complements their portfolio of alternative assets well.
Earlier in February, the price of the Central African Republic’s “official meme coin” CAR plummeted by 96% from a peak of $0.89 within a day following its controversial launch.