A few months ago, a trend started in which well-known companies like Microstrategy, Square and Tesla started adding bitcoin to their companies’ balance sheets. Now, a Canadian condominium company has decided to invest in bitcoin to replace part of the company’s reserve fund with encryption. Thornton Place Condominium Corporation took advantage of the Kraken cryptocurrency exchange to process the transaction.
Canadian condominium company buys bitcoin for reservations
Crypto assets and the main digital currency bitcoin (BTC) have been gaining momentum in 2021, as assets like BTC reach new price spikes. For example, BTC reached a historic high (ATH) touching $ 61,782 per BTC on March 14, 2021.
In 2020 and 2021, a large number of companies traded money and shares in their treasuries to replace them with bitcoin (BTC). Recently, companies have also been adding ethereum (ETH) to their balance sheets. On March 17, the Canadian condominium company called Thornton Place Condominium Corporation announced that it has purchased bitcoin (BTC).
Thornton Place is located in the Canadian provincial capital of Saskatchewan and the organization explained that it bought 0.4 BTC for $ 25,000.
Thornton Place board members voted to purchase and “determined that a small investment of approximately 5% of the general Reserve Fund and 6% of the Operational Fund’s monthly contributions in bitcoin will allow Thornton Place to gain limited exposure to an asset class without compromising any of the long-term goals of the corporation and its owners. “
Prior to the purchase vote, the Thornton Place board created a governance policy to manage BTC. The company believes that, in the long run, BTC reserves will help to make the condominium organization self-sustainable.
“It is the Council’s intention that the monthly investment of $ 700.00 of contributions from the Operational Fund will continue over the long term and indefinitely. We see a 10-year time horizon for investment and we will continue to assess the scope and performance of the investment in relation to general corporate finance, as appropriate, ”explained the Thornton Place announcement.
The Canadian company added:
In making this investment, we believe that we have taken the first steps that may one day allow the elimination of owners’ condominium contributions and result in Thornton Place Condominium becoming a fully self-sustaining, valuable and sought after property.
Thornton Place treasurer: ‘Bitcoin is a little more stable’
According to a report, Thornton Place Condominium Corporation treasurer Howard Ulmer detailed that the idea came from a colleague on the board. Ulmer said the board was well aware of BTC’s price fluctuations and believes that the crypto asset has become more stable.
“It looks like this may be a more stable time for investing in bitcoin,” said Ulmer. “And in recent years there has been a considerable fluctuation, and that does not mean that it cannot happen any more. But at least it looks a little more stable. “
Despite the enthusiasm of the members of the Thornton Place Condominium Corporation, other individuals are not as happy with the recent decision by the condo association.
“Under [Saskatchewan] act of the administrator, consideration should be given to the risk [in investing] … and so, because of that, the condominium society did not take all of its reserve fund and invested in bitcoin, even if it falls to zero, it will not make or break the reserve fund and the capacity of the condominium society to meet your continuing demands in the future, ”said University of Toronto finance professor Lisa Kramer, in response to the recent move from Thornton Place to buy bitcoin.
What do you think of the company Thornton Place Condominium Corporation buying bitcoin for reservations? Let us know what you think about this subject in the comments section below.
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