Africa Bitcoin Corporation, formerly Altvest Capital, will shift its strategy to use Bitcoin as its primary treasury asset. The company, the first listed in Africa with this approach, aims to raise $210 million to purchase Bitcoin and offer financial services based on this cryptocurrency. The decision affects South African companies and investors and comes amid growing regional adoption.
Strategy and Objectives
The firm will be renamed Africa Bitcoin Corporation and plans to adopt the Strategy Inc. model, which positions Bitcoin as a reserve asset for companies. The plan is to raise $210 million solely to buy Bitcoin, making it the core of its balance sheet, while offering Bitcoin-based financial services. The company states that cryptocurrency use in Southern Africa has increased by 52%, which, according to its leaders, demonstrates real demand and a need for accessible money.
This move opens a path for investors to access Bitcoin through a listed African company, reinforcing the company’s thesis of combining Bitcoin treasury with familiar financial products.
Leadership Voices
Stafford Masie, company chairman, emphasized that the plan is not only financial:
“In Africa, when money services don’t work well, people die. We live that reality.”
His statement links Bitcoin use to financial inclusion and economic stability. Meanwhile, Warren Wheatley, the company director, stated that Bitcoin is a useful asset to expand the company’s balance sheet.
Risks, Regulation, and Mitigation
The price of Bitcoin can be highly volatile, and regulations in several African countries are unclear, which could complicate the plan and daily operations. Experts warn that concentration of Bitcoin in a few companies increases contagion risk, adding uncertainty to implementation.
To mitigate these risks, Africa Bitcoin Corporation leaders will establish agreements with other firms for Bitcoin custody and ensure regulatory compliance. They will also offer products such as credit, savings, and other financial services to South African companies, combining Bitcoin as a treasury asset with traditional financial offerings.
This decision could accelerate custody solutions and Bitcoin-linked products in the region, though questions remain about oversight and risk management. More regulated companies could emerge to provide Bitcoin access, while the firm maintains Bitcoin as a reserve and plans products like credit, savings accounts, and digital money solutions based on this technology.
If Africa Bitcoin Corporation raises $210 million, it will be a key test of whether digital money can function as a reserve in Africa, with direct impacts on access to financial services and the maturation of the regional regulatory framework.
