Los Angeles real estate mogul to accept Bitcoin for rent, reveals company has allocated 1% of assets to Bitcoin

The real estate company Caruso, owned by American billionaire Rick Caruso, announced on Wednesday that it will start accepting Bitcoin as a payment method for rent on its residential and retail properties. The company also revealed that it has allocated 1% of its assets into Bitcoin.

Collaborating with Gemini on Cryptocurrency Business

Rick Caruso, a well-known real estate developer in Los Angeles, has built several popular large shopping centers and rental properties in the area. The Grove shopping center, for instance, sees an average daily foot traffic of 49,000 people, more than Disneyland. Additionally, there are 350 rental properties in luxury buildings near residential areas like Americana and Pacific Palisades, as well as The Grove shopping center.

According to a report by the Los Angeles Times, Caruso, the namesake real estate company under Rick Caruso, will partner with Gemini, a cryptocurrency exchange owned by the Winklevoss twins, to introduce Bitcoin rent payment services and a cryptocurrency loyalty program for users.

While the operators of Caruso's nine outdoor shopping centers have stated that tenants have not expressed a demand to pay rent with Bitcoin, Rick Caruso believes that with the increasing adoption of cryptocurrencies by institutions and the public, he wants to be prepared early. Caruso likens Bitcoin to credit cards in the 1950s, initially a rare commodity held by a few until it gradually became mainstream.

"I believe Bitcoin and blockchain will see the same thing in the future, and we hope to be ahead of the game in this aspect."

In addition, Caruso will launch a blockchain and cryptocurrency-based loyalty reward program. The specific reward mechanisms are still being planned but could be similar to accumulating points like credit cards, except the points will be tokens on the blockchain that can be used to offset costs of Caruso properties. Apart from tokens, Caruso may also distribute rewards in the form of non-fungible tokens (NFTs). Rick Caruso stated that the reward mechanism based on blockchain will allow customers to use or redeem rewards in the way they see fit, providing more attractiveness to Caruso.

Allocating 1% of Company Assets to Bitcoin

Caruso will also invest a portion of the company's funds into Bitcoin, to be custody by Gemini. It is reported that the company has invested approximately 1% of its assets, but the specific cost and current value are not disclosed by the company. Rick Caruso mentioned in an interview:

"I believe it's a good hedge asset for diversifying company assets, and the results have proven it to be a good investment for us."

Rick Caruso added that his company's entry into cryptocurrency is part of a long-term investment plan, not for short-term trading.

"This is not for next year or five years; we are looking at the next decade."