A network of churches in Northern Colorado is embracing blockchain technology to securitize their sanctuary thanks to an opportunistic real estate broker. Led by Pastor Blake Bush, the community is working to raise $2.5 million to purchase Fort Collins’ oldest church, the Old Stone Church. Bush, a former franchise salesman and founder of the non-denominational Third Day Church, was introduced to blockchain technology in 2022 and decided to tokenize the historic building after hearing a message from the Lord.
REtokens, a company based in Spokane, Washington, has partnered with Polymesh to tokenize $30 million in real estate, including the Old Stone Church. Investors can purchase tokens in the church with a minimum of $50,000 for accredited investors or $500 for non-accredited church congregants. The tokens will be available on the secondary market until the majority of investors and the board decide to sell or Jesus returns. Potential investors will have to create an account with REtokens, undergo a know-your-customer process, and will be subject to normal income and capital gains taxes.
Unlike traditional church fundraisings, congregants investing in the Old Stone Church will not receive any tax deductions. Instead, they will receive K-1 partnership distributions for income and capital gains taxes. The pitch deck projects a 2-3% yearly increase on each token based on the rise in real estate value in downtown Fort Collins, as well as dividends from the rent the LLC receives. Pastor Bush emphasizes that investors are not in it for profits but to do good in the community and advance the kingdom.
The Old Stone Church is the first tokenized church, but it may not be the last. With as many as 100,000 Christian church properties expected to be sold or repurposed in the next decade, Pastor Bush’s vision extends beyond Fort Collins, as he hopes to help others tokenize their historic buildings. Businesses are already acquiring church properties for use as offices, restaurants, co-working spaces, and hotels, showcasing the potential for church tokenization in the future.
After the article’s publication, REtokens announced that they have raised $1.46 million, or 65%, of the $2.25 million offering and have eliminated an equity fee. This update shows the progress of the tokenization of the Old Stone Church and the continued interest from investors in the community. As more churches consider tokenizing their properties, the intersection of religion and blockchain technology may prove to be a successful venture for communities looking to preserve their historic buildings.
