Written by Zoltan Vardaistaff writerReviewed by Yohan Yunstaff editor

Written by Zoltan Vardaistaff writer

Reviewed by Yohan Yunstaff editor

Situational Awareness returns with $400M investment after nearly collapsing: Report

MarketsPublishedAug 6, 2026

Situational Awareness reportedly made a $400 million investment in an undisclosed company, days after the hedge fund nearly collapsed following July’s AI stock crash.

Situational Awareness, the hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, reportedly invested $400 million in a privately held company days after it nearly collapsed under margin calls.

The fund invested $100 million in the same unnamed company in July, Bloomberg reported Thursday, citing people familiar with the matter. The latest investment was completed on Tuesday.

Cointelegraph has approached Situational Awareness for comment.

Assets at Situational Awareness fell about 78% in July, as an AI-stock sell-off triggered margin calls from Wall Street lenders.

The fund sought fresh capital and considered selling stakes in private companies, as reported by the Financial Times.

The fund subsequently sold most of its public equity portfolio to Ken Griffin’s Citadel, allowing it to repay lenders and retain its private holdings.

Situational Awareness had invested heavily in power and data centers supporting AI, including Bitcoin miners expanding into AI computing.

A May 18 filing with the US Securities and Exchange Commission covering holdings as of March 31 showed about $1.11 billion in positions across seven Bitcoin mining stocks, including IREN, Core Scientific, Riot Platforms and CleanSpark.

Magazine: Why Ray Dalio says Bitcoin can’t replace gold

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

• AI
• Hedge Fund
• Stock Investment
• OpenAI
• Stocks
• Markets
• Investments

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