A few months ago, a trend started where well-known companies like Microstrategy, Square and Tesla started adding bitcoin to their company’s balance sheets. Now a Canadian homeowner has decided to invest in bitcoin to replace part of the firm’s reserve fund with crypto. Thornton Place Condominium Corporation used the Kraken cryptocurrency exchange to process the transaction.
Canadian Condo Company Buys Bitcoin for Reserves
Crypto-assets and the leading digital currency bitcoin (BTC) got steam in 2021 as assets like BTC hit all new price points. For example, on March 14, 2021, BTC reached an all-time high (ATH) of $ 61782 per BTC.
In 2020 and in 2021, a large number of companies traded cash and shares out of their treasury to replace them with bitcoin (BTC). In recent times, companies are also adding ethereal (ETH) to their balance sheets. On March 17, the Canadian apartment company called Thornton Place Condominium Corporation announced that it had purchased bitcoin (BTC).
Thornton Place is located in the capital of the Canadian province of Saskatchewan and the organization explained that they bought 0.4 BTC for $ 25,000.
The Thornton Place board members voted on the purchase and ‘determined that a small investment of around 5% of the total reserve fund and 6% of the monthly working fund contributions in bitcoin will enable Thornton Place to have limited exposure to’ a performing asset class without jeopardizing any of the long-term goals of the corporation and its owners. ”
Prior to the vote on the purchase, the Thornton Place management drew up a management policy to manage the BTC. The company believes in the long run that the BTC reserves will help make the apartment organization self-sustaining.
“It is the intention of the board that the monthly investment of $ 700.00 from the contributions of the operating fund will be continued in the long term and indefinitely. We see a ten-year time horizon for the investment and will continue to evaluate the size and performance of the investment relative to the overall corporate finances, as appropriate, “the Thornton Place announcement explained.
The Canadian company added:
At the investment, we believe that we have taken the first steps that may one day enable the abolition of contributions of the apartment money of the owners, and that Thornton Place Condominium becomes completely self-sustaining, valuable and prestigious real estate.
Thornton Place Treasurer: ‘Bitcoin is a little more stable’
According to one report, the treasurer of Thornton Place Condominium Corporation Howard Ulmer explained that the idea came from a fellow board member. Ulmer said the board was well aware of the price fluctuations of BTC and that the crypto-asset had become more stable.
“It seems like it could be a more stable time for investing in bitcoin currency,” Ulmer said. ‘And in recent years there has been a considerable fluctuation, and that does not mean that it can no longer happen. But at least it looks a little more stable. ‘
Despite the enthusiasm of members of the Thornton Place Condominium Corporation, other people are not so happy with the recent decision on the apartment association.
“Among the [Saskatchewan] trustee law, the risk must be considered [in investing] … and therefore the apartment corporation did not take their entire reserve fund and invest it in bitcoin, even if it is zero, it will not make or break the reserve fund and the ability of the corporation to meet its ongoing demands in the future, ”said Lisa Kramer, professor of finance at the University of Toronto, in response to the recent Thornton Place move to buy bitcoin.
What do you think of the company Thornton Place Condominium Corporation that buys bitcoin for reserves? Let us know what you think of this topic in the comments below.
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