Real estate firm of the same name, Rica Caruso, uses cryptocurrency.
The Fairfax-based investment firm will begin accepting bitcoin rentals on its retail and commercial properties, according to the Los Angeles Times.
The firm also said it spent 1 percent of its cash reserves on bitcoins and has partnered with Gemini, a cryptocurrency exchange led by Tyler Winklevoss.
“We have allocated a percentage of what normally goes to the capital markets into bitcoin,” Caruso said in an interview with CNBC.
According to Coindesk, the move makes Caruso the largest real estate operator in the United States to accept bitcoin for rent. The holdings of the company in Southern California include the Grove shopping center, Miramar Beach Resort and the luxurious 240-unit rental complex Americana at Brand.
How many tenants will decide to pay in this currency remains to be seen. Its value fluctuates dramatically – over the past three months, Bitcoin has been worth between $ 30,000 and $ 60,000. As an example: a year ago, one bitcoin was trading below $ 5,000. Today it costs more than 10 times more.
Caruso is not the only investor to switch to cryptocurrency. Earlier this year, Morgan Stanley made Bitcoin available to its asset management clients. Goldman Sachs is expected to offer clients tools for investing in cryptocurrency in the near future.
Bitcoin is sometimes accepted in small real estate transactions. In January, a New York City bar owner listed two properties that could be bought with Bitcoin. And the owner of the Treehouse nightclub in Miami Beach listed the properties in March with payment in cryptocurrency or cash.
In February, Rick Caruso put up his Malibu mansion for sale. He listed a 7,200-square-foot home for $ 40 million in February, or roughly 693 bitcoins today; not a word if he accepts currency as payment.
[LAT] [CNBC] – Dennis Lynch