Aliko Dangote, the richest man in Africa, had a sharp rise in his wealth in 2021 thanks in large part to his cement business, Dangote Cement, which he founded.
Sergey Brin, the sixth richest man in the world with a net worth of $126 billion, may have fallen to him if he had put 5% of his money into the leading cryptocurrency asset, Bitcoin, seven years earlier.
According to Bloomberg, an essential contributor to Dangote’s wealth is his 86% ownership of the publicly traded Dangote Cement.
The African tycoon possesses shares in the company both directly and through his conglomerate, Dangote Industries.
Furthermore, Dangote’s other publicly traded assets, including holdings in Dangote Sugar, Nascon Allied Industries, and United Bank for Africa, are listed on one of the most important integrated capital market infrastructures in Africa, the Nigerian Exchange Group.
His investments in these companies are owned directly and through Dangote Industries, which is a closely held company with enterprises involved in food, fertilizer, oil production, and other products.
As per Bloomberg, Aliko Dangote’s most valuable closely held asset is a fertiliser factory with the capacity to produce up to 2.8 million tonnes of urea every year.
Although he’s currently building a new oil refinery in Nigeria worth $19 billion, it’s not included in the calculation of his net worth because it’s still under development, and the expenses for its construction are estimated to be greater than its present value.
When Dangote’s wealth reached $26.7 billion in July 2014, it was at its highest point ever. The share price of Dangote Cement also reached its greatest level that year during that month, reaching a high of N250 per share.
Just after reaching his high, Dangote experienced a sharp sell-off that caused his stock price to drop as low as N153 a share in December 2014. He then lost 46.82% of his wealth in six months.
His fortune has been declining since it peaked in July 2014, trading as low as $9.69 billion in 2016, when Dangote Cement sold as low as N123.
After that, his fortune appeared to have entered a consolidation phase, but shortly after, a bullish breakout was observed, and on March 5, 2019, it significantly increased to $16.8 billion. During this time, Dangote Cement’s shares were selling for about N200.
Amid the COVID-19 pandemic, Aliko Dangote’s fortune took another hit. On April 9, 2020, when Dangote Cement was sold at a low of N117 per share due to a global panic sell-off in equities, his net worth plummeted to $13 billion.
However, since then, his net worth has been steadily rising, reaching a peak of $20.2 billion on December 1st, 2021, when shares of Dangote Cement were exchanged for N280.
The company’s share buyback program, which is currently in effect, has played a significant role in the increase in share prices.
If, on December 7, 2014, when Dangote’s wealth was $16.1 billion and he decided to invest 5% of his holdings, or $805 million, in Bitcoin, which was trading at $375 at the time, he would have seen that allocation rise by 13,416% to stand at roughly $109 billion on December 7, 2021, using the price of Bitcoin as the benchmark, which is $50,700.
If everything remained the same, his entire wealth would amount to $127.9 billion, making him the sixth richest person in the world.
Assuming all other factors remain constant, Aliko Dangote’s wealth would have reached $166.7 billion at Bitcoin’s all-time high of $68,789.63, making him the world’s fourth-richest person and surpassing Bill Gates in net worth.
Furthermore, if Dangote had donated just 2% of his estimated $13 billion fortune in August 2020 to the meme currency sensation Shiba Inu, he would have become the wealthiest person ever and the first multi-trillionaire in history.
The growth of the cryptocurrency industry, especially in 2021, has been a global phenomenon that has surprised many.
Developing nations, in particular, have reaped the benefits of this disruptive technology, with increased income and opportunities.
In light of recent research, investing 5% of one’s assets in the cryptocurrency market may be a risk worth taking to capitalize on the industry’s growth.
Several experts in the field have advised investing a mere 5% of one’s portfolio in digital assets.
Written By: Allen Matshalaga
Allen is a professional forex trader, blogger, and online enthusiast who spends most of his time testing and reviewing legit ways of making money online and is determined to help others succeed.