Fortress Investment Group is planning to transform its $13 million stash of Bitcoin into a $150 million hedge fund.
Financial Times reported that New York-based Fortress has entered into a deal with Pantera Capital Management, the manager of the Pantera Bitcoin Partners fund, for an equity stake. In addition to a minority stake in Pantera, the deal will give Fortress an interest in the management and performance fees of the Bitcoin fund--in exchange that the the fund will become the vehicle for all of the hedge fund's future digital currency investments.
Fortress revealed in its annual report in February that it bought $20 million of Bitcoin, the virtual currency that was created in 2009, in the last few months of last year.
Fortress manages about $58 billion in assets.