A trend started a few months ago when well-known companies like Microstrategy, Square and Tesla began to include bitcoin on their balance sheets. Now, the Canadian housing association has decided to invest in bitcoin to replace some of the company’s reserves with cryptocurrencies. Thornton Place Condominium Corporation used the Kraken crypto-currency exchange to complete the transaction.
Canadian housing association acquires bitcoins for reserves
Crypto assets and the leading digital currency, bitcoin (BTC), are well on the way in 2021, with assets like BTC reaching new price highs. For example, on the 14th. March 2021. BTC reached an all-time high (ATH) of $61,782 per unit of BTC.
In 2020 and 2021, many companies are exchanging their cash and shares for bitcoin (BTC). Recently, companies have also added Ethereum (ETH) to their balance sheet. The 17th. In March, Canadian condominium association Thornton Place Condominium Corporation announced the purchase of Bitcoin (BTC).
Thornton Place is located in the capital of the Canadian province of Saskatchewan, and the organization reported having purchased 0.4 BTC for $25,000.
Thornton Place board members voted in favor of the purchase, noting that a small investment of about 5% of the total reserve fund and 6% of Bitcoin’s monthly contributions to the corporate fund would give Thornton Place limited access to a high-yielding asset class without compromising the long-term goals of the company or its owners.
Before voting on the purchase, the Thornton Place board developed a BTC management policy. The company believes that in the long run, the BTC reserves will help make the condominium self-sufficient.
The board plans to continue investing $700 per month. The Working Capital Fund is funded on a long-term and perpetual basis by contributions to the Working Capital Fund. We are looking at a 10-year time horizon for the investments and will continue to evaluate the size and performance of the investments in relation to the company’s overall finances, as appropriate, Thornton Place said in a statement.
The Canadian company added:
We believe that with this investment, we have taken the first steps towards one day eliminating owner contributions to the development and making Thornton Place a fully self-sustaining, valuable and desirable property.
Thornton Place Treasurer: Bitcoin – stable bitcoin
According to a report, Howard Ulmer, treasurer of the Thornton Place Condominium Corporation, said the idea came from a board member. Ulmer said the board is aware of the volatility of the BTC price and believes the crypto asset has become more stable.
It looks like it could be a more stable time to invest in the bitcoin currency, Ulmer said. There have been significant fluctuations in recent years, and that doesn’t mean it can’t happen again. But at least it seems more stable.
Despite the enthusiasm of the members of the Thornton Place Condominium Corporation, others are not so happy with the Condominium Corporation’s recent decision.
Under the [Saskatchewan] Trustee Act, risk must be considered [when making investments] …. This is why the condominium corporation has not invested its entire reserve fund in bitcoin. Even if bitcoin becomes zero, that won’t wipe out the condo company’s reserve fund and ability to meet its current needs in the future, said Lisa Kramer, a professor of finance at the University of Toronto, in response to Thornton Place’s recent decision to buy bitcoin.
What do you think about Thornton Place Condominium Corporation buying bitcoins for reserves? Let us know what you think in the comments below.
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