IREN and AI-focused Bitcoin miners surged Thursday following the forced liquidation of Leopold Aschenbrenner’s hedge fund, Situational Awareness.
The fund suffered heavy losses during a July sector sell-off on its leveraged AI infrastructure investments. Margin calls triggered the sale of the fund's entire public stock portfolio to Citadel.
Situational Awareness held a position in IREN valued at over $300 million before its collapse. The fund targeted companies with power and data center assets essential for artificial intelligence expansion.
Analysts attribute the stock rebound to the removal of massive selling pressure. Renewed investor confidence and positive tech sector news further supported the recovery.