Written by Bryan O’Sheastaff editorReviewed by Robert Lakinstaff editor

Written by Bryan O’Sheastaff editor

Reviewed by Robert Lakinstaff editor

Hedge fund with $1.1B in Bitcoin miner stocks seeks capital after AI sell-off: FT

MarketsPublishedJul 30, 2026

The FT stated Situational Awareness had approached investors and lenders after borrowing amplified losses during July’s AI stock sell-off.

Situational Awareness, the hedge fund founded in 2024 by ex-OpenAI researcher Leopold Aschenbrenner, has approached investors and lenders for fresh capital after suffering heavy losses in the recent artificial intelligence stock sell-off, the Financial Times reported Thursday.

The fund, which the Wall Street Journal stated had around $20 billion in assets under management as of June 8, has also offered some investors the option to buy portfolio assets, as reported by the FT, citing people briefed on the discussions and a July 24 investor letter. 

The size of the losses and amount sought were not disclosed. Aschenbrenner’s fund had gained 439% after fees through June, as reported by the letter, but the FT stated borrowing increased the size of the fund’s bets, driving up losses when AI stocks collapsed during July’s market rout. Aschenbrenner also reportedly argued in the letter that the sell-off had created attractive investment opportunities.

Cointelegraph previously reported that the fund had made a big bet in its portfolio around the power and data centers supporting AI, including Bitcoin (BTC) miners pivoting into AI computing. A filing with the US Securities and Exchange Commission in March showed about $1.11 billion in positions across seven Bitcoin miner stocks, including IREN, Core Scientific, Riot Platforms and CleanSpark.

Aschenbrenner wrote a series of essays on artificial general intelligence in mid-2024 around the same time he introduced his Situational Awareness fund. In it, he predicted that AGI machines will outpace college graduates by the end of the decade.

Cointelegraph contacted Situational Awareness for comment but had not received a response by publication.

Related: Bitcoin mining’s 2026 reckoning: AI pivots, margin pressure and a fight to survive

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.

• Hedge Fund
• AI
• Bitcoin Mining
• Stock Investment
• Markets
• Investments

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