Actor-Turned-Crypto Whiz Brock Pierce Buys $1.3 Million Mansion with Bitcoin
Actor-turned-crypto entrepreneur Brock Pierce used bitcoin as collateral to purchase a $1.3 million mansion in Amsterdam. The real estate transaction represents the first-ever crypto-backed mortgage.
Swiss cryptocurrency startup Nexo facilitated the purchase. Nexo is a crypto wallet that lets you borrow up to $2 million in 45 different fiat currencies within 24 hours.
“He backed the entire loan for the house with bitcoin,” Nexo co-founder Antoni Trenchev toldFox Business. “This was our first-ever crypto-backed mortgage.”
Brock Pierce Holds 95% of Net Worth in Crypto
Brock Pierce is a former child actor who starred on the hit 1992 film “The Mighty Ducks” (opposite Emilio Estevez).
Pierce has since become a crypto entrepreneur and venture capitalist who’s now the chairman of theBitcoin Foundation. Amazingly, Pierce holds more than 95 percent of his net worth in cryptocurrencies.
‘Tokenization Will Be Quadrillion-Dollar-Market’
In November 2018, Pierce used $3 million in bitcoin as collateral to buy his lavish Amsterdam mansion.
Nexo’s Antoni Trenchev said Pierce initially wanted to hold all his crypto assets, but needed the cash to buy the property, so he used his bitcoin holdings as collateral.
“So we take that bitcoin and other digital currencies as collateral using a third-party qualified custodian to store it and give them fiat cash for it. But neither the client nor us have access to the coins.”
“For a loan of $10,000, you will need to deposit $20,000 in bitcoin. So we lend you 50 cents on the dollar.”
Pierce says being able to borrow fiat money against his crypto assets is a convenient financing method. It also “aligns with my philosophy that real estate and tokenization will be a quadrillion-dollar-market.”
“I was able to hold on to my crypto and settle the transaction in fiat.”
Mike Novogratz: Real Estate Tokenization Will Be Big
As CCN reported, bitcoin bullMike Novogratzbelieves the tokenization of assets such as real estate is an emerging trend.
Novogratz, the founder of crypto investment bank Galaxy Digital Capital Management, said several companies have begun tokenizing luxury condos in the tony real estate markets of New York and Aspen, Colorado.
“You’re going to see more and more of that. It’s not nearly as sexy as Web 3.0, but it’s a part of this broader movement of tokenization, digitalization in blockchain. The blockchain makes a lot possible.”
As Crypto Prices Tumble, Mike Novogratz Pounds the Table on Real Estate Tokenizationhttps://t.co/838mGax8Qn
— CCN.com (@CCNMarkets)November 16, 2018
Real Estate Agent: ‘Tokenization Is Paving the Way’
Many condo buildings are getting their own tokens, representing a fractional interest in the property. This enables owners to invest in luxury condos even with a small investment — something that previously was extremely difficult.
New York City real estate agent Ryan Serhant says tokenization could revolutionize real estate financing.
“With blockchain tokenization, we can remove the unruly pressure of traditional bank financing, which is much healthier for the project and all of the stakeholders,”Serhant said. “Tokenization is paving the way for a new forefront in real estate development.”
About The Author
Samantha Chang is a financial editor who writes about politics atBizPac Review, about business atCCN, and general news atHVY. She is a law school graduate and an alum of the University of Pennsylvania who enjoys finance, flowers, and fitness. You can find her on Twitter atSamantha_Chang.