Hedge fund with 11b miner bets seeks capital after AI hit
A hedge fund with 11b in crypto-linked miner exposure—about $1.1 billion across Bitcoin mining stocks—is seeking fresh capital after July’s AI sell-off. The Financial Times said Situational Awareness approached investors and lenders as leverage amplified losses during the market rout this month.
Key Takeaways
- Situational Awareness has approached investors and lenders for capital after July’s AI stock sell-off, per the Financial Times.
- A March SEC filing showed about $1.11 billion across seven Bitcoin miner stocks, including IREN, Core Scientific, Riot Platforms and CleanSpark.
- Borrowing amplified losses in the rout; the size of losses and capital sought were not disclosed.
- The fund gained 439% after fees through June and, per the Wall Street Journal, had around $20 billion in AUM as of June 8.
- Some investors were offered the option to buy portfolio assets, the FT said, citing briefed sources and a July 24 investor letter.
Situational Awareness was founded in 2024 by former OpenAI researcher Leopold Aschenbrenner. According to Cointelegraph’s report on the FT coverage, the fund has been seeking fresh capital after heavy losses tied to the recent artificial intelligence equity sell-off.
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Why is the hedge fund seeking capital now?
The FT reported that Situational Awareness approached investors and lenders after borrowing increased the size of its bets. That leverage drove up losses when AI stocks collapsed during July’s market rout.
The size of the losses and the amount of capital sought were not disclosed. Cointelegraph said it contacted Situational Awareness for comment but had not received a response by publication.
How large is the Bitcoin miner stock position?
Cointelegraph previously reported the fund made a sizable portfolio bet around power and data centers supporting AI, including Bitcoin miners pivoting into AI computing.
A March filing with the US Securities and Exchange Commission showed about $1.11 billion in positions across seven Bitcoin miner stocks. Holdings included IREN, Core Scientific, Riot Platforms and CleanSpark—the core of the “hedge fund with 11b” miner-stock story circulating in markets coverage.
What did Situational Awareness tell investors?
The FT cited people briefed on the discussions and a July 24 investor letter. That letter said the fund had gained 439% after fees through June.
Aschenbrenner also reportedly argued in the letter that the sell-off had created attractive investment opportunities. Separately, the FT said the fund offered some investors the option to buy portfolio assets.
The Wall Street Journal said the fund had around $20 billion in assets under management as of June 8. Aschenbrenner wrote a mid-2024 essay series on artificial general intelligence around the fund’s launch, predicting AGI systems would outpace college graduates by the end of the decade.
The episode underscores how leveraged AI-themed bets—including listed Bitcoin miners tied to compute and power—can swing quickly when equity markets reverse. Investors watching miner stocks and AI-adjacent hedges should treat the FT report as a capital-raise signal, not a confirmed rescue package, until figures are disclosed.