Fortress Loses $3.7M On Bitcoin

Mar 3 2014 | 11:58am ET

The turmoil surrounding digital currency bitcoin has proven costly for Fortress Investment Group.

The alternative investments giant said last week that it had lost $3.7 million on its bitcoin investments. In the Securities and Exchange Commission filing, Fortress did not elaborate on its bitcoin bet, other than to say it bought $20 million worth of the controversial crypto-currency last year, and that the bitcoins were worth only $17 million at the end of 2013.

The investment, if Fortress continues to hold it, is likely to have fallen further since. Bitcoin prices have been dropping. Late last month, Mt. Gox, one of the largest bitcoin exchanges in the world, closed and filed for bankruptcy, reportedly after hackers made off with half a billion dollars worth of bitcoins.

Fortress had reportedly planned to start a bitcoin fund, and the firm's macro co-chief investment officer, Michael Novogratz, also invested in the currency last year.


In Depth

Fund Manager's Disease: Common Symptoms and Proposed Remedies

May 3 2016 | 6:11pm ET

The cadre of 25 research analysts at Murano Systems speaks with more than 150 investors...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...