First Listed Company in Africa to Adopt Bitcoin as Treasury Asset
Altvest Capital (ALV) has made headlines as the first publicly listed company in Africa to embrace Bitcoin (BTC) as a strategic treasury asset. This significant move was announced in a press release on Friday, signaling a shift in the investment landscape on the continent.
Pioneering the Bitcoin Path
Following in the footsteps of notable international firms such as Strategy (MSTR) in the United States and Metaplanet (3350) in Japan, Altvest has purchased one Bitcoin for its treasury. The Johannesburg-based firm invested 1.8 million rand (approximately $98,200) for just over one BTC, reinforcing its commitment to this digital asset.
Bitcoin: The Asset of Choice
Altvest has explicitly stated that it does not intend to diversify its treasury with alternative cryptocurrencies, emphasizing its belief that Bitcoin is the only digital asset that meets its stringent investment criteria for long-term allocation. The company sees Bitcoin as a crucial tool for preserving shareholder value, mitigating currency depreciation risks, and gaining exposure to a globally acknowledged store of value.
The Growing Trend Among Corporations
The trend of corporations adopting Bitcoin as a treasury asset is gaining momentum. Michael Saylor’s Strategy, previously known as MicroStrategy, was a pioneer in this movement, beginning its Bitcoin acquisition in 2020. Currently, Strategy holds an impressive 478,740 Bitcoin, valued at over $47 billion based on today’s market prices.
Success Stories: Metaplanet’s Remarkable Performance
Tokyo-based Metaplanet has also made waves in the crypto space since it began purchasing Bitcoin in April of the previous year. The company has acquired 2,031 Bitcoin, amounting to nearly $200 million, and has experienced phenomenal success, with its shares becoming the best-performing Japanese equity over the last 12 months, boasting a staggering 3,900% gain. Recently, investment bank KBW initiated coverage of Strategy, rating it as “outperform” with a price target of $560, while the shares currently trade at $323.92.
Current Market Response
As Altvest embarks on this strategic journey, its shares were trading more than 9% lower at 590 rand at the time of the announcement. This indicates a mixed reaction from the market as investors assess the long-term implications of the company’s Bitcoin investment strategy.
In conclusion, Altvest Capital’s entry into the Bitcoin treasury movement marks a significant milestone for African corporations. As the interest in Bitcoin continues to grow globally, it will be interesting to observe how this trend evolves and impacts the financial landscape in Africa and beyond.
