More companies and firms are diversifying into crypto, as the trend of establishing a Bitcoin Treasury continues. Mexico-listed real estate firm Grupo Murano has become the latest to join the trend after it announced plans to adopt Bitcoin as a core strategic asset.
The real estate firm plans to start with an initial investment of $1 billion to build a $10 billion BTC treasury within five years. This bold strategy has been widely applauded by crypto enthusiasts. They believe companies strategically diversifying into Bitcoin will accumulate more money than relying on traditional assets.
CEO Outlines Grupo Murano’s Vision
In an exclusive interview, CEO Elias Sacal argues that Bitcoin is “demonetizing” the real estate industry. He added that establishing a Bitcoin treasury will help Grupo Murano optimize its finances and capitalize on BTC’s appreciation to curb surging interest rates and declining currency.
Grupo Murano manages hotels and several residential and commercial properties in Cancun and Mexico City. Two of its biggest clients are Hyatt and Mondrian. Sacal, who has spent over three decades in real estate development, said the firm intends to convert properties into BTC holdings through refinancing and sale-leasebacks.
In his defense, he said such a step will minimize debt and equity on its balance sheet, while capitalizing on BTC’s appreciation. “We believe Bitcoin will appreciate more and may increase 300% within five years,” he said.
Sacal Highlights the Need for Real Estate Independence
Sacal addressed the industry’s reliance on debt financing in his interview, stating that this model has been disrupted by rising interest rates. He notes that the real estate sector needs to be independent of inflation, emphasizing Bitcoin’s stability.
The real estate veteran said BTC is more stable for transactions and reduces commission and exchange rate costs. He said by using BTC for payment, the firm eliminates middlemen, such as hedge funds and portfolio managers. “A $100 payment often shrinks to $85 after fees, but BTC makes these payments more efficient.
Bitcoin Treasury Launches the Real Estate Industry into a New Era of Digital Assets
Sacal claims the company will allocate 20%-30% of its business to real estate and 70%-80% to Bitcoin. He sees Latin America pioneering real estate adoption of Bitcoin, with El Salvador leading the way in Bitcoin adoption. However, he notes the political tension in the area, saying Bitcoin could unify regional economies and reduce dependence on tourism or remittances.
Grupo Murano’s diversification strategy highlights the growing trend of Bitcoin diversification. Companies are planning long-term, and they see Bitcoin as an escape route from rising futuristic inflation and depleting currency. By capitalizing on Bitcoin, companies become resilient to economic volatility, which Sacal has explained. Soon, Bitcoin will rule the real estate industry.
At the global stage, Cardon Capital said it will adopt a full-scale Bitcoin-backed strategy after adding 1,000 BTC to its balance sheet. The company once unveiled a 364-unit complex in the Miami River for rental income. It stated a portion of the rentals would be converted into Bitcoin. This shows the Bitcoin treasury is gaining massive traction among public companies.
What’s Next for Grupo Murano?
Grupo Murano will sensitize its stakeholders and employees about the firm’s new diversification strategy, according to Sacal. He also revealed that the firm will deploy Bitcoin ATMs and enable BTC payments at its hotels. The firm is working on finalizing some partnerships to make installation seamless. This is part of Murano’s plans to raise $100 billion Bitcoin treasury, following in the footsteps of Strategy.
