Fortress-Linked Pantera Said to Invest in Top Bitcoin Exchange

Bitcoin
A twenty-five bitcoin, right, and one bitcoin are arranged for a photograph in Tokyo, Japan. Photographer: Tomohiro Ohsumi/Bloomberg

March 17 (Bloomberg) -- Pantera Capital Management, the hedge fund that manages money for Fortress Investment Group executives, invested about $10m in Bitstamp months before the startup emerged as the world’s dominant dollar-Bitcoin exchange, according to three people briefed on the deal.

* Infusion late last yr ranks among the largest single

investments in a Bitcoin venture and is part of a broad

Pantera strategy to build a brand in the Bitcoin world, the

people said * London-based Bitstamp’s share of dollar-Bitcoin trades

multiplied from mid-Feb. to as much as 50% after collapse of

Mt. Gox, once the world’s top Bitcoin exchange, according to

data from Coinometrics, a Bitcoin research firm

For Related News and Information: Wall Street Bitcoin Fans Try to Make Real Money From Virtual NSN MYZLFQ6S972S <GO> Mt. Gox Files for Bankruptcy After $470 Million Bitcoin Loss NSN N1Q9Q06K50YO <GO>

To contact the reporter on this story: Carter Dougherty in Washington at +1-202-624-1907 or cdougherty6@bloomberg.net To contact the editors responsible for this story: Maura Reynolds at +1-202-654-7360 or mreynolds34@bloomberg.net David Scheer

Download: Liontrust's Martin Says Bitcoin Is a `Phenomenon' (Audio)

Before it's here, it's on the Bloomberg Terminal. LEARN MORE