The Fortress Investment Group, a global investment management company, bought $20 million worth of Bitcoin back in 2013 according to a SEC filing. This makes the Fortress Investment Group the first company to account a venture into the digital currency’s realm. However, since the purchase, by the end of 2013, the company reported a loss of $3.7 million due to a price drop in Bitcoin’s value. By December 31, the firm’s bitcoins were worth less than $17 million.
About this disclosure, Gil Luria, a managing director at Wedbush Securities said,
“This makes it more legitimate for the hedge funds to buy, and easier, and provide the path for any other public company to report it.”
In addition to this, Luria said,“Now, there’s a blueprint for how to go through reporting ownership of Bitcoin in a public S.E.C. filing.”
Banks and governments around the world have been warning against using Bitcoin because of the risks involved with it: volatility and lack of regulation. Ever since Mt. Gox teetered on the edge of a massive collapse, it issued a domino effect in the Bitcoin world that negatively affected the digital currency’s value. Recently, Mt. Gox filed for bankruptcy protection after it had gone offline.
Is Fortress Investment Group Starting a Bitcoin Fund?
It is speculated that the Fortress Investment Group is starting a Bitcoin fund. Keeping this in mind, it would make sense for them to buy $20 million worth of coins. However, with any business venture, there is always a chance of having losses.
When speaking of the Fortress Investment Group’s investment in Bitcoin, Luria said,
“I think the question now is whether they’re going to market this as a product to their investors. I think that would be the next step I would expect from them.”
The speculation of the Fortress Investment Group starting a Bitcoin fund has sprouted hope that Bitcoin can gain the ability to become more accessible to people. In addition to this group, other companies and entrepreneurs have backed up Bitcoin which has started to push the digital currency into mainstream.
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