Investment through cryptocurrency platform Kraken believed to be the first 'physical purchase' of Bitcoin by a Canadian condominium company
REGINA, SK, March 17, 2021 /PRNewswire/ - Thornton Place Condominium Corporation ("Thornton Place"), a Condominium Corporation incorporated pursuant to The Condominium Property Act, 1993 (Saskatchewan), today announced that it has purchased 0.4 bitcoin for its reserve fund with $25,000.00 (CAD) in cash at an average price of approximately $62,500.00 (CAD) per bitcoin, inclusive of fees and expenses.
To ensure the security and efficiency of the transaction, Thornton Place worked with the cryptocurrency platform Kraken.
This represents the first of an ongoing series of planned purchases, with Thornton Place having allocated an additional $700.00 per month to the purchase of future bitcoin on an ongoing and indefinite basis.
Thornton Place has taken direct physical custody of the bitcoin, rather than opting for a custodial service or exchange traded fund with a management fee. It is believed that this is the first physical purchase of bitcoin by a condominium or strata corporation within Canada.
In a statement, Thornton Place said:
"Our Board determined that a small investment of approximately 5% of the overall Reserve Fund and 6% of the monthly Operating Fund contributions into Bitcoin will permit Thornton Place to gain a limited exposure to a high-performing asset class without jeopardizing any of the long-term goals of the corporation and its owners. Prior to making the investment, the Board adopted a policy governing its management.
"It is the Board's intent that the $700.00 monthly investment from the Operating Fund contributions be continued on a long-term and indefinite basis. 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.
"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 real estate."
SOURCE Thornton Place Condominium Corporation