South Africa's Altvest Capital has announced plans to create a Bitcoin reserve of $210 million and to rebrand as Africa Bitcoin Corp. This decision aims to attract institutional investors.
Plan for Reserve Creation
Altvest intends to hold Bitcoin directly on its balance sheet, viewing it as a hedge similar to cash or gold. CEO Warren Wheatley stated that this move allows for regulated Bitcoin exposure through equity markets, facilitating institutional investors' access to the asset.
Growth of Corporate Bitcoin Holdings
The announcement comes as corporate Bitcoin holdings surpass 1 million BTC across public companies. MicroStrategy remains the largest holder with 636,505 BTC. New players are emerging, with XXI holding 43,514 BTC and Bitcoin Standard Treasury owning 30,021 BTC.
Altvest's Financial Results
Despite its bold Bitcoin strategy, audited results from Altvest revealed operating expenses of R29.4 million against revenue of just R7.6 million. Net cash outflows reached R26.3 million, although the company reported a paper profit of R48 million from fair value gains.
As Altvest moves towards creating a Bitcoin reserve, the overall trend of corporate Bitcoin holding continues to grow, potentially signaling broader support for the asset in the financial sector.
