Castle Investment takes over $4 billion in assets, ending the wave of sell-offs by mining companies
According to Woofun AI, Castle LLC founder Ken Griffin confirmed that in response to the Bitcoin mining company sell-off crisis caused by the collapse of the Situational Awareness hedge fund, his company has successfully resolved more than 80% of the risks taken, marking a substantial decline in market liquidity shocks.
The roots of this crisis can be traced back to the Situational Awareness Fund led by former Open Artificial Intelligence researcher Leopold Ashenbrunner. According to information disclosed on August 21, 2026, the fund suffered a huge loss of up to 67% in July. The core reason was that its heavy artificial-intelligence-related stocks were falling in price, compounded by falling semiconductor stock prices, and the leverage effect dramatically increased the pressure on it to raise cash. In the process of being forced to reduce its holdings, Castle Investments quickly stepped in and acquired most of the fund's stock portfolio through nearly 100 major transactions, with a total value of over $4 billion.
According to data compiled by Woofun AI, Castle Investments' Wellington Fund achieved a yield of 5.94% in July. As of the release of the latest report, the cumulative yield this year was about 12%, showing steady performance in a volatile market.
This series of operations not only alleviated market fears, but also laid the foundation for subsequent market stability.
An in-depth analysis of the position structure revealed details of the Situational Awareness Fund's risk exposure in the June 30 disclosure document. The fund holds long positions worth $20.4 billion in 26 investment positions, of which Bitcoin mining-related assets account for a significant share, reaching $19.9 billion. Specifically, Core Scientific (CORZ.US)'s holdings are $666 million, Riot Platforms (RIOT.US) is $468 million, IREN (IREN.US) is $433 million, CleanSpark (CLSK.US) is $179 million, and Keel Infrastructure is $152 million.
Notably, in the second quarter, the risk exposure of these mining companies increased by 79%, while Riot Platforms' (RIOT.US) holdings increased by as much as 229%. Behind this aggressive strategy, there is a market view that as demand for artificial intelligence increases, the value of power and data center infrastructure will rise.
However, this leverage-based betting eventually collapsed due to market fluctuations, causing mining companies' stock prices to be severely impacted by non-fundamental factors.
As Castle Investment quickly completed its asset exit, the pressure forces that forced mining companies to sell off have been cut off, and the market evaluation logic is returning to fundamentals. Currently, Bitcoin's transaction price is around $77,309, and the market capitalization is close to $1.55 trillion. Many mining companies are actively turning to the field of high-performance computing and artificial intelligence data centers in an attempt to achieve profits through methods other than mining. Although electricity costs and network difficulties are still key factors affecting revenue, power facilities owned by mining companies can be used to attract artificial intelligence and cloud computing customers, and Bitcoin can provide a stable revenue stream. Now that more than 80% of the risk has been mitigated, the most turbulent phase of the industry seems to have passed, and investors' attention will be refocused on aspects such as the company's operating conditions, balance sheets, and limited power supply capacity. The reduction in short-term sources of volatility will help stock prices more realistically reflect their intrinsic value.