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Regina condo corporation invests in bitcoin, but experts warn of risks

Saskatchewan

A Saskatchewan condo corporation has purchased thousands of dollars worth of bitcoin in hopes of eventually eliminating fees for residents, but experts say such cryptocurrency investments come with risks.

Regina-based Thornton Place Condominium Corporation bought 0.4 bitcoin for $ 18, 000

The Canadian Press ·

Regina’s Thornton Place Condominium Corporation says it bought 0.4 bitcoin for $ 17, . (Dado Ruvic / Illustration / Reuters)

A Saskatchewan condo corporation has purchased thousands of dollars worth of bitcoin in hopes of eventually eliminating fees for residents, but experts say such cryptocurrency investments come with risks.

Regina-based Thornton Place Condominium Corporation says it recently bought 0.4 bitcoin for $ 18, through cryptocurrency platform Kraken and has allocated $ 700 per month for future purchases of the cryptocurrency.

Condo board treasurer Howard Ulmer says the Bitcoin investment idea came from a former board member and was designed to be conservative in order to mitigate risks.

Ulmer says the investment amounts to about five per cent of the corporation’s reserves and six per cent of its monthly operating fund.

However, University of Toronto finance professor Lisa Kramer warns that c ryptocurrencies can be volatile and it is easy for investments in bitcoin to quickly erode in value.

She thinks it was wise for the board to limit its exposure to bitcoin, but says she hopes other condo corporations do not use the practice because of the risks it involves.

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