Fortress Investment Group Raises Buyout Offer To $1,300 Per BTC

[image credit :Fortress Investment Group]

New York-based private equity firm Fortress Investment Group has raised its offer to purchase creditor claims from the now-defunct Mt. Gox exchange.

Mt. Gox was once a leading cryptocurrency exchange that at one point saw over 70% of bitcoin’s total trading volume. In 2014 the exchange went bankrupt after reporting losses of over $480 million in the aftermath of a major security breach that saw it lose 7% of all circulating BTC.

Over 200,000 bitcoins were later on found and a trustee has been working to reimburse creditors with them, a process that has been delayed in part by lawsuits filed by its own customers.

The Fortress Investment Group is offering creditors $1,300 per bitcoin, equivalent to 88% of its estimated account value, according to Bloomberg. The new deal sees Fortress offered more per BTC when compared to the last one, in which the firm offered a 70% payment of creditors’ claims.

Michael Hourigan, Fortress’ Managing Director, was cited saying the firm is making its offer to creditors over the “likely timeline (3 to 5 years) and financial risk of the ongoing litigations.” The offer also comes amid a bitcoin price rise that has seen the flagship cryptocurrency try to stay above $10,000 numerous times.

CryptoCompare data shows BTC is currently trading at $9,587.8 after falling 5% in the last 24-hour period. Over the last two weeks bitcoin has managed to surpass the $10,000 mark four times, but hasn’t been able to stay above it for long.

It’s worth pointing out that when Mt. Gox shut down one bitcoin was trading at about $450. Fortress’ offer last year was for $900 per BTC.

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