After Fortress Investment Group LLC filed its report for the Securities and Exchange Commission for the year 2013, it a loss of $3,7 million have been uncovered due to the vast investment into Bitcoin. However, it seems like they do not regard it as loss.
Fortress and Bitcoin
Fortress is famous for investing money in projects and affairs that big players on the stock market tend to avoid. Opposite to its previous focus on “solid” assets, the company began to invest in “liquid markets”.
By acquiring $20 million in digital coin equivalent (somewhere after the exchange rate for Bitcoin made an insane jump) Fortress became the first big player on the stock market that openly proclaimed its affiliation with Bitcoin. On December 31 these $20 million turned into $16,3 million and due to the recent quakes in the Bitcoin ecology these cost even less now.
Certainly all these Bitcoins haven’t gone anywhere, that is why it is called the unrealized loss. The only question is what will happen to all the digital coins that Fortress is holding, where will it be put?
What tomorrow awaits
The company’s CEO Randy Nardone is quite optimistic, claiming that the earnings per share in 2013 were about 70% bigger than the year before. So, these $3,7 of lost investment are a drop in the sea comparing to something like $60 billion that Fortress holds as assets. As one might say – they can afford to lose a million or three.
Besides, it’s not exactly loss. More like a temporary setback. There were also rumors, which the company heats up on occasional basis, about the creation of the new Bitcoin investment fund similar to the BIT.
Nevertheless, the Fortress could serve as great role model for other investors that don’t know what to do with the cryptocurrency. Especially when more and more people begin to realize one simple thing that senior director of SecondMarket, David Kinitsky formulated for USA Today: “We all know Bitcoin is here to stay regardless of big corporations and banks.”