African Firm Altvest Joins Bitcoin Treasury Trend

Bitcoin's influence as a strategic treasury asset continues to expand, with Altvest Capital (ALV), a listed company based in Johannesburg, South Africa, becoming the first African firm to adopt the cryptocurrency. In a press release issued on Friday, Altvest announced the purchase of one bitcoin for its strategic treasury, following a similar path taken by U.S.-based Strategy (MSTR) and Japanese firm Metaplanet (3350).

Altvest paid approximately 1.8 million rand ($98,200) for just over 1 BTC, and has no plans to invest in alternative cryptocurrencies. The company views bitcoin as the only digital asset that meets its stringent investment criteria for a long-term treasury allocation. This move aligns with a growing trend among corporations, with Michael Saylor's Strategy leading the way by initiating bitcoin purchases in 2020. Today, Strategy holds 478,740 bitcoin, valued at over $47 billion at current prices.

Altvest's decision to acquire bitcoin was driven by a focus on preserving shareholder value, mitigating currency depreciation risks, and gaining exposure to a globally recognized store of value. This strategy has proven successful for other companies, such as Metaplanet, which started buying bitcoin in April 2021. Metaplanet has since acquired 2,031 tokens worth nearly $200 million, and its shares have become the best-performing Japanese equity over the past 12 months, with a gain of 3,900%.

At the time of publication, Altvest shares were trading more than 9% lower at 590 rand. As bitcoin's appeal as a strategic treasury asset continues to grow, more companies may follow Altvest's lead and invest in the cryptocurrency to diversify their portfolios and hedge against currency risks.