South African Firm Altvest Purchases First Bitcoin, Plans $10M Fundraising for Treasury Expansion

Highlights:

• Altvest has acquired one Bitcoin and aims to raise $10 million to expand its holdings.
• Altvest becomes Africa’s first public firm to adopt Bitcoin as a treasury reserve asset.
• Corporate Bitcoin adoption rises as Strategy, Metaplanet, and U.S. states expand holdings.

South African investment firm Altvest Capital has made its first Bitcoin (BTC) investment, marking its entry into the cryptocurrency market. On February 21, Altvest revealed the acquisition of around 1 BTC, valued at approximately $98,000, as part of its long-term treasury management strategy. The company emphasized that it currently has no plans to invest in other cryptocurrencies.

Altvest Capital Makes History with Bitcoin !

Altvest Capital becomes the first publicly traded listed company in Africa to adopt Bitcoin as strategic treasury asset, reinforcing our commitment to innovation, resilience, and alternative investments.

With Bitcoin’s scarcity,… pic.twitter.com/3AI7I7bj5L

— Altvest Capital (@CapitalAltvest) February 21, 2025

Altvest decided to invest in Bitcoin because of its fixed supply, decentralized nature, and growing institutional adoption. The firm views Bitcoin as a strategic reserve asset to hedge against economic instability and currency depreciation, particularly the South African Rand (ZAR). Altvest’s CEO, Warren Wheatley, emphasized that Bitcoin fundamentally differs from other digital assets.

He stated:

“It is the only truly decentralized, scarce, and globally recognized digital asset that aligns with Altvest’s investment philosophy. We see Bitcoin as a strategic reserve asset that enhances our treasury portfolio while providing a hedge against economic instability and currency depreciation.”

Altvest Seeks to Raise $10M to Expand Bitcoin Holdings

The CEO of Altvest Capital said that after the first acquisition the company is now seeking regulatory approval in order to increase by around $10 million through the sale of shares. The aim is to accumulate more Bitcoin. But as of yet, there has been no decision made on the fundraising.

The latest development positions Altvest as Africa’s first publicly traded company to adopt Bitcoin as its primary treasury reserve asset. The strategy mirrors that of U.S. technology company Strategy, which has seen significant stock rise since it began accumulating BTC.

Growing Corporate Bitcoin Adoption Raises Concerns

Several financial experts and analysts have expressed concerns about companies allocating corporate funds to purchase Bitcoin. They cite BTC’s inherent volatility and potential risks to corporate balance sheets.

For instance, Michael Lebowitz, a portfolio manager at RIA Advisors, has criticized MicroStrategy for its heavy investment in Bitcoin. Lebowitz said the company may be ‘preying on investors’ since its success depends on Bitcoin’s volatile price.

Michael Pachter, an analyst at Wedbush Securities, has also been bearish on companies like GameStop exploring Bitcoin investment. He believes that adopting BTC could increase the risk of the stock, especially as the stock is already valued highly.

Bitcoin Adoption Gains Momentum Among Firms and States

Strategy, the business intelligence and Bitcoin acquisition firm previously known as MicroStrategy has revealed plans to raise $2 billion through 0% senior convertible notes. The funds will be used to further increase its Bitcoin holdings.

The company mentioned that most of the funds raised would go toward acquiring more Bitcoin, while some will support general operations. Currently, the firm holds 478,740 BTC worth around $47 billion, with an average purchase cost of $65,000 per coin. Despite market fluctuations, its Bitcoin investments have yielded a 51% profit, driving a 360% surge in its stock over the past year.

Meanwhile, several U.S. states, including Illinois, Texas, and Ohio, have proposed bills to hold Bitcoin and other cryptocurrencies as reserve assets. In a similar move, Metaplanet recently expanded its Bitcoin holdings by adding 68.59 BTC, valued at approximately $6.6 million.