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Hedge fund with $1.1B in bitcoin miner stocks seeks new capital

Situational Awareness is reported to have approached investors and lenders after borrowing amplified losses during July's AI-driven stock sell-off.

Reported · Written up by our desk · Market Structure

A hedge fund holding roughly $1.1 billion in positions across seven bitcoin miner stocks is seeking new capital following heavy losses during July's AI-related market rout, the Financial Times reported and Cointelegraph summarized.

Situational Awareness, founded in 2024 by former OpenAI researcher Leopold Aschenbrenner, has approached investors and lenders for fresh funding, and the fund has also offered some investors the option to buy portfolio assets, according to the FT, citing people briefed on discussions and a July 24 investor letter.

The FT said the fund had gained 439% after fees through June, but that borrowing increased the size of its bets, which helped drive losses when AI stocks collapsed in July. The report said the size of the losses and how much capital it is seeking were not disclosed.

A March filing with the U.S. Securities and Exchange Commission showed about $1.11 billion in positions across bitcoin miner stocks, including IREN, Core Scientific, Riot Platforms, and CleanSpark, Cointelegraph noted. Cointelegraph said it reached out to Situational Awareness for comment but did not receive a response by publication.

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