Pantera Capital Management - a hedge fund managing money for Fortress Investment Group (FIG) - invested about $10M in Bitstamp ahead of its emergence as the dominant Bitcoin exchange (up to 50% market share since the Mt. Gox collapse), reports Bloomberg.
Led by founder Dan Morehead (formerly a top man at Tiger Management), Pantera has a $147M fund called Pantera Bitcoin Advisors. Fortress' Michael Novogratz calls Morehead "our man when it comes to Bitcoin." The Bitstamp investment wasn't Pantera's first Bitcoin-related deal. It was part of $9M in funding for digital-currency business Ripple Labs, which also counts Google among its backers.
Fortress, if you remember, last month disclosed a $3.7M paper loss on $20M of Bitcoin purchased in 2013. "Put a little money in Bitcoin,” Novogratz told a banking conference last October. “Come back in a few years and it’s going to be worth a lot.”