A board-ready Bitcoin allocation framework for condo and HOA reserve funds.

Why a tiered framework

A board that has decided to consider a Bitcoin allocation still faces the sizing question. There is no single right percentage — the defensible answer depends on fund size, time horizon beyond the nearest major Reserve Fund Study project, the provincial Condo or Strata Act, and how advanced the board's governance documentation already is.

A tiered framework — Conservative, Balanced, Aggressive — gives a board a structured starting point and a defensible language for unit owners, auditors, and AGM attendees. Rather than picking a single percentage from a blog post, the board selects the tier that matches the corporation's profile and operates within it. Each tier comes with its own size band, recommended instrument, and governance prerequisites, so the trade-offs at each level are explicit rather than implicit.

Allocation tiers

Three side-by-side tiers — pick the one that matches fund size, horizon, and governance maturity. Each tier shows its percent-of-fund band and a worked dollar split on a representative $2M reserve fund.

Board decision checklist

The eight-step sequence a board follows from allocation decision to first dollar deployed. Each step builds the documentation and governance trail that protects directors personally and gives unit owners confidence in the decision.

1. Confirm provincial Condo/Strata Act permits Review the applicable Condo or Strata Act for the corporation's province, the bylaws, and obtain a written legal opinion specific to the proposed Bitcoin allocation. This written opinion is the foundation of the entire process and is non-negotiable before any of the subsequent steps.
2. Review the Reserve Fund Study horizon Identify the long-duration bucket in the Reserve Fund Study — typically the portion sitting for major projects 15+ years out. The Bitcoin allocation should be sized to this bucket, not to the fund's near-term obligations.
3. Pass formal board resolution capping allocation at the chosen tier Use a verbatim resolution that names the percentage cap (e.g. "up to 1% of the reserve fund"), the eligible instrument, the annual review cycle, and the directors' protection against accusations of improvident action. Circulate to all directors before the vote.
4. Amend the Investment Policy Statement with rebalancing trigger Update the IPS to add the maximum Bitcoin allocation, eligible instrument, custody requirements, and a rebalancing rule: if the position drifts more than 1 percentage point above target at any quarterly review, rebalance to target.
5. Select instrument: TSX-listed Bitcoin ETF vs. direct Bitcoin For Balanced and Aggressive tiers, choose between a TSX-listed Bitcoin ETF (liquid, simpler AGM communication, T+1 redemption) or direct Bitcoin via a regulated Canadian custodian (better for larger positions, full beneficial ownership). Document the choice in the IPS.
6. Onboard chosen custody / brokerage under corporate KYC Complete the corporate KYC for the condo corporation — beneficial ownership verification of directors and signing officers, segregation of client accounts, multi-sig setup where direct custody is used. This is typically a 1–2 week onboarding cycle.
7. Deploy via 4–6 quarter DCA Rather than a single lump-sum purchase, schedule the deployment across 4–6 quarters to reduce the timing risk of any single entry point. Schedule the first purchase, then automate the subsequent quarterly purchases until the target tier is reached.
8. Disclose at the AGM and in audited financial statements Include position size, fair market value, cost basis, and the IPS reference in the AGM package and the audited statements. Frame the rationale around purchasing-power protection, not speculation. Annual review at the AGM is a standing item.

Frequently asked questions