South African Company Altvest Starts Bitcoin-Only Investment Strategy
South African investment company Altvest Capital has made its first Bitcoin purchase, buying one BTC as part of its new investment strategy focused exclusively on Bitcoin. The company announced its entry into the Bitcoin market on February 21, 2024, specifically noting it would not include other cryptocurrencies in its strategy in a report from Cointelegraph.
Warren Wheatley, CEO of Altvest Capital, said the company has applied to regulators for approval to list Bitcoin-linked equity instruments. The firm views Bitcoin as distinct from other digital assets, considering it the only truly decentralized and scarce digital asset that matches their investment criteria for long-term treasury allocation.
The company's decision to invest in Bitcoin stems from several factors, including:
- Protection against the depreciation of the South African Rand
- Bitcoin's decentralized nature
- Its established global recognition
- Limited supply characteristics
- Long-term growth potential
Altvest's cautious approach to other cryptocurrencies is based on their analysis of various risks in the altcoin market. The company identified problems with altcoins such as inflationary supply mechanisms, centralized control, governance issues, varying liquidity levels, and uncertain regulatory status.
While maintaining its Bitcoin-only focus, Altvest plans to invest more profits into Bitcoin and raise additional capital through new issuance for further Bitcoin purchases. As the first publicly traded company in Africa to make such a move, Wheatley believes other African companies, particularly from tech-forward nations like Rwanda and Kenya, may follow their example.
The announcement comes as discussions continue about digital asset reserves globally, including debates in the United States about diversified cryptocurrency holdings versus Bitcoin-only approaches. Some members of the Bitcoin community have expressed concerns about proposals for broader cryptocurrency reserves, including allegations of lobbying efforts by companies like Ripple for a diversified approach.
The Czech central bank's interest in Bitcoin research aligns with Altvest's assessment of Bitcoin as a distinct asset class. Recent economic data supports this growing institutional attention, with U.S. Bitcoin mining now generating $4.1 billion in gross product annually and supporting over 31,000 jobs. The sector's growth spans multiple states, with Texas contributing $1.7 billion in annual gross product, while Georgia and New York add $316.8 million and $225.9 million respectively. This expansion coincides with twenty U.S. states considering Bitcoin additions to their reserves, with potential investments of up to $23 billion, showing a broader trend of institutional adoption that extends beyond private companies like Altvest to include government entities and central banks.
