Regina, Canada-based Thornton Place Condominium Corp. has invested 5% of its reserves in Bitcoin. Instead of using a custodial service or an exchange-traded fund, the company has taken direct physical custody of the purchased Bitcoin, becoming the first Canadian condominium company to have physical exposure to the leading digital asset.
Thornton Place Purchases 0.4 Bitcoin Through Kraken
Thornton Place has purchased 0.4 Bitcoin worth 20,110 USD through the Kraken cryptocurrency exchange. Moreover, the company has further allocated 563USD per month for future purchases of the cryptocurrency “on an ongoing and indefinite basis.”
Reportedly, Thornton Place placed investment in Bitcoin as a means of potentially eliminating residents’ condominium fees, adding:
“In making this investment, we believe that we have taken the first steps that may one day permit the elimination of condominium fee contributions from the owners and result in Thornton Place Condominium becoming entirely self-sustaining, valuable, and sought-after.”
Thornton Place says it sees a 10-year time horizon for the investment with the ultimate goal of becoming a self-sustaining real estate:
“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.”
Condo board treasurer Howard Ulmer says the bitcoin investment idea came from former board member and attorney Eric Miller. Ulmer says the investment was allocated in small amounts in order to mitigate risks.
The investment amounts to about 5% of the corporation’s reserves and 6% of its monthly operating fund.
Canada Taking an Interest Towards Cryptocurrencies
It’s not just big players making billion-dollar investments in Bitcoin, smaller firms are now placing their bets on the leading digital asset as a potential store of value.
Canada seems to be taking an increased interest in cryptocurrencies. The country’s financial watchdog, Ontario Securities Commission, recently approved Evolve Funds Group for launching a Bitcoin ETF in the country. Meanwhile, the total market cap of cryptocurrencies recently crossed the GDP of Canada.