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Bitcoin, BTC, Canada, Canadian apartment, Canadian apartment company, apartment, cryptocurrency, Howard Ulmer, Lisa Kramer, Regina, Reserve, Saskatchewan, Thornton Square, San Town Plaza Apartments, Treasurer, Ministry of Finance
A few months ago, a trend began when well-known companies such as Microstrategy, Square and Tesla started adding Bitcoin to their company balance sheets. Now, a Canadian apartment company has decided to invest in Bitcoin to replace part of the company’s reserves with cryptocurrency. Thornton Place Condominium Corporation uses the cryptocurrency exchange Kraken to process transactions.
Crypto assets and the leading digital currency Bitcoin (BTC) are in full swing in 2021, as assets such as BTC have reached all new price highs. For example, BTC reached an all-time high (ATH) on March 14, 2021, reaching $61,782 per BTC.
From 2020 to 2021, many companies have been trading cash and stocks in their Treasury bills in order to replace them with Bitcoin (BTC). Recently, the company has also been adding Ethereum (ETH) to its balance sheet. On March 17, Canadian condominium company Thornton Place Condominium Corporation announced that it had purchased Bitcoin (BTC).
Thornton Place is located in the capital city of the Canadian province of Saskatchewan. The organization explained that it has purchased 0.4 BTC for $25,000.
Thornton Place’s board members voted on the transaction and “determined that a small investment of approximately 5% of the total reserves and a small monthly contribution of 6% to the operating fund of Bitcoin will allow Thornton Place to obtain limited high-yield risks. Exposure. Asset class without compromising any long-term goals of the company and its owners.”
Before voting on the purchase, the Thornton Square Board of Directors established a governance policy for BTC. The company believes that in the long run, BTC reserves will help make the apartment organization self-sufficient.
“The intention of the board of directors is to continue to receive a monthly investment of US$700.00 from operating fund contributions for a long and indefinite period of time. The Thornton Place announcement explained: “We believe that this investment has a 10-year time limit and will, in appropriate circumstances, Evaluate the scope and performance of the investment based on the overall company financials “
The Canadian company added:
In making this investment, we believe that we have taken the first step and one day the owner’s apartment fee may be cancelled, resulting in Thornton Place Condominium becoming a completely self-sustaining, valuable and sought-after real estate.
According to a report, Howard Ulmer, the treasurer of Thornton Square Apartments, detailed that the idea originated from another member of the board of directors. Ulmer said that the board of directors is very aware of BTC’s price fluctuations and believes that crypto assets have become more stable.
Ulmer said: “It seems that this may be a more stable period for investing in Bitcoin.” “The volatility in recent years has been great, but this does not mean that it will not happen again. But at least it seems more stable.”
Although the members of the Thornton Place Condominium Corporation are enthusiastic, others are not satisfied with the recent decision of the Condominium Association.
“under [Saskatchewan] Trustee behavior must consider risks [in investing] … Therefore, since the condominium company has not invested all of its reserves in Bitcoin, even if the reserve fund reaches zero, it will not use or destroy the reserves, nor will it allow the condominium company to meet its continuing needs. The University of Toronto Finance professor Lisa Kramer responded to Thornton Place’s recent move to buy bitcoin.
What do you think of Thornton Place Condominium Corporation buying Bitcoin as a reserve company? Let us know your thoughts on this topic in the comments section below.
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