Shares in Altvest Capital, a JSE-listed investment firm, plunged after it announced it has made its first foray into cryptocurrency, acquiring Bitcoin as part of its treasury strategy.
The shares closed 9.23% lower at R5.90 on Friday on the JSE.
According to a Stock Exchange News Service (SENS) announcement released on Friday, Altvest, through its subsidiary Altvest Bitcoin Strategies Proprietary Limited, purchased 1.00464 Bitcoin for R 1.81 million.
The Board of Altvest said it has conducted a comprehensive risk assessment and determined that Bitcoin aligns with Altvest’s alternative asset investment philosophy.
“It offers long-term growth potential while serving as a hedge against macroeconomic risks, particularly the depreciation of the South African Rand. Additionally, Altvest has implemented a structured risk management framework to monitor and optimise Bitcoin exposure in line with treasury objectives,” it said.
The move aims to “preserve shareholder value, mitigate currency depreciation risks, and gain exposure to a globally recognised store of value.”
Altvest made a case for Bitcoin, noting its fixed supply of 21 million coins, ensuring scarcity and protecting against inflationary dilution, and its operation on a fully decentralised and censorship-resistant network.
The firm also pointed to institutional adoption by global corporations and “regulatory recognition” in South Africa as key factors.
Bitcoin is the most liquid and secure digital asset, with daily trading volumes exceeding $20 billion and the strongest network security of any blockchain, it also said.
Altvest cautioned that it remains exclusively focused on Bitcoin and has no plans to invest in alternative cryptocurrencies.
It added that other digital assets often exhibit “supply mechanisms that may be inflationary or controlled by central entities” and increased exposure to regulatory uncertainties.
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