- December 6, 2021
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The fund created by nonprofit charity: water will hold its BTC reserves until 2025, when it will begin using it to support operations worldwide.
The Bitcoin Water Trust, an exponential growth fund by nonprofit charity: water for providing clean water to people in developing countries, has reached its goal of raising 100 BTC, reported Forbes. The fund received its one-hundredth bitcoin after the Winklevoss brothers, founders of the Gemini bitcoin exchange, personally matched the first 50 BTC donated to the trust.
“Charity: water began accepting Bitcoin in 2014, using the proceeds to fund the construction of new water projects around the world,” said the founder and CEO of charity: water, Scott Harrison, per the report. “We came up with the Bitcoin Water Trust after we converted a total of 569 Bitcoin donated to us at spot prices along the way.”
The initiative was announced at the Bitcoin 2021 conference in Miami and sought to attract bitcoin donations with a unique treasury management strategy, “HODL MODL.” The nonprofit committed to holding all bitcoin received by the fund until January 2025, when the proceeds will start being used to fund charity: water’s efforts to bring clean water to where it is needed most.
“If we liquidated the trust today, we could bring clean and safe drinking water to more than 130,000 people. But we believe this fund will have an even greater impact over time,” said Harrison.
Charity: water received its first bitcoin donation back in 2014 from professional skater Tony Hawk. The athlete donated 5 BTC, which the nonprofit instantly converted to cash when one BTC sold for just $314. After seeing missed opportunities for holding onto their received bitcoin, charity: water devised the Bitcoin Water Trust.
“In the past, we’ve converted BTC to fiat currency to fund the construction of new water projects, however we believe in 2025 and beyond, we’ll have more options to use the BTC from the fund to directly fund work across many of the 21 countries where charity: water is active,” Harrison added. “We’re in the process of putting together an advisory board to work on the strategy, with the goal of helping as many people get clean water as possible through the fund.”
Charity: water hopes to use BTC directly starting in 2025, instead of having to convert to cash. Harrison also urged his fellow nonprofit leaders to consider adopting bitcoin, which he believes “can be used as a force for good in the world, helping to lift people out of extreme poverty and provide them with the basic needs to flourish,” according to the report.
