Childhood actor and cryptocurrency enthusiast Brock Pierce has reportedly purchased a house for $1.2 million in Bitcoin, according to Fox Business.
Nexo – a start-up in Switzerland that offers “instant” crypto credit – told Fox Business that the Mighty Ducks actor is the first individual in the world to have purchased real estate using Nexo’s platform.
Back in November 2018, Brock Pierce – who reportedly holds more than 95% of his net worth in crypto – used roughly $3 million in Bitcoin as collateral to purchase the property.
The property in question is a former chapel converted into a house located in Amsterdam.
Brock Pierce used the Bitcoin as collateral to fund his mortgage on the property.
During an exclusive interview with Fox Business, Antoni Trenchev – co-founder and managing partner at Nexo – commented:
“He backed the entire loan for the house with Bitcoin. This was our first-ever crypto-backed mortgage.”
He explained that most crypto enthusiasts, Pierce included, are convinced crypto will soar and so they often do not want to sell their assets. However, sometimes life demands assets be spent, and so he offered Bitcoin as collateral to purchase a new home.
“So we take 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,” explains Trenchev.
Nexo customers can receive loans of up to $2 million in 45 different fiat currencies within 24 hours. There are interest rates on the loans, however, starting from 8% up to 16%.
Due to the volatile nature of the crypto markets, Trenchev also explained to Fox Business that customers are expected to put down double as a buffer. In effect, Nexo will be lending 50 cents to the dollar.
It is positive to see more and more tangible use cases emerge for crypto, as more use cases brings a greater chance for widespread adoption.
Interested in reading more Brock Pierce-related news? Discover more about Brock Pierce with Coin Rivet’s interview.