Condominium company Thornton Place Condominium Corporation (Thornton Place) has just purchased 0.4 bitcoin (BTC) for its reserve fund with CA$25,000 in cash, with BTC costing at an average price of roughly CA$62,500 per token at time of purchase.
Thornton Place worked with cryptocurrency platform Kraken in order to ensure that the transaction stays secure and efficient.
This purchase will not be a one-time thing as it is the first of the series of planned purchases and it will remain continuous for an indefinite time. An additional $700 will be allocated to each month to be used for future bitcoin purchases.
Instead of utilizing custodial service or exchange traded fund (ETF) that comes with a management fee, Thornton Place went the physical bitcoin custody route. The company is the first to physically purchase bitcoin as a condominium or strata corporation within Canada.
In a statement by Thornton Place:
“Our Board determined that a small investment of approximately 5% of the overall Reserve Fund and 6% of the monthly Operating Fund contributions into Bitcoin will permit Thornton Place to gain a limited exposure to a high-performing asset class without jeopardizing any of the long-term goals of the corporation and its owners. Prior to making the investment, the Board adopted a policy governing its management.
It is the Board’s intent that the $700.00 monthly investment from the Operating Fund contributions be continued on a long-term and indefinite basis. We see a 10-year time horizon for the investment and will continue to evaluate the scope and performance of the investment in relation to the overall corporate finances as is appropriate.”
Thornton Place remarked further in the statement that the investment is made in hopes of eventually permitting the elimination of condominium fee contributions from the owners, as well as becoming a fully self-sustaining and valuable real estate that is in high demand.