Canadian Property Firm Buys Bitcoin in Hopes of Eventually Scrapping Condo Fees
The firm bought 0.4 bitcoin and plans to buy more every month.
Mar 19, 2021 at 10:36 a.m. UTCUpdated Sep 14, 2021 at 12:29 p.m. UTC
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Saskatchewan-based Thornton Place Condominium Corp is hoping to eventually do away with condo fees by investing in bitcoin.
- In an announcement, Thornton Place in Regina said it has purchased 0.4 bitcoin with CAD$25,000 (US$20,050) through the exchange Kraken at an average price of CAD$62,500 (US$52,104) per bitcoin including fees and expenses.
- The buy is the first of an ongoing series of planned purchases, the company said, with Thornton Place having allocated an added CAD$700.00 per month to the purchase of bitcoin going forward
- The company said it has taken direct physical custody of the bitcoin purchased instead of using a custodial service or exchange-traded fund with a management fee.
- Thornton Place Condominium said it sees a 10-year time horizon for the investment and it has “taken the first steps” which it hopes will lead to the elimination of fees for residents.
- “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,” said the firm.
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