Canadian property firm, Thornton Place Condominium Corporation announced an initial purchase of 0.4 BTC for 25,000 CAD through Kraken Crypto exchange, to add to its reserve fund.
The Regina-based property management firm bought the bitcoin at an average price of 62,500 CAD ($50,000), including fees and other expenses. The BTC purchase is also going to be followed by monthly Bitcoin purchases of $700 for an undefined period of time.
The firm views the purchase as a preparation that will increase its value and make it a self-sustaining company in the future.
“Thornton Place sees this move as a preparation to make the firm entirely self-sustaining, sought-after-real estate.”
Additionally, the firm is now believed to be the first real estate company in Canada to make a physical bitcoin purchase, similar to MicroStrategy.
“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.”
Institutions often invest in Bitcoin through digital assets management funds like Grayscale or institutional custody services or by buying shares of traded funds.
Thornton Place: Bitcoin is a High-performing Asset
The firm’s board said in a statement that its aim is to accumulate bitcoin by using a 5% small investment from the overall Reserve Fund as well as 6% from its Operating Fund to make subsequent bitcoin purchases.
“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 finance as is appropriate.”
Thornton Place added that Bitcoin is a high-performing asset and the low-volume purchases will enable the firm to gain limited exposure to the asset, without risking the long-term goals of the firm.
Before making the purchase Thornton Place said that its board of management adopted a new policy to govern its management and incorporate the changes.
“In making this investment we believe that we have taken the first step that may one day permit the elimination of condominium fee contributions.”