Citadel Exits Bitcoin Miner Stakes, Miner Shares Get Room to Breathe

Citadel, led by founder Ken Griffin, has unwound more than 80% of the risk it acquired from Situational Awareness, a hedge fund that went under due to concentrated bets on AI-linked stocks. This forced selling had put pressure on Bitcoin miners for weeks, but with Citadel's exit largely complete, miner shares can now trade based on their own fundamentals rather than the forced liquidation.

The June 30 filing showed a $20.24 billion long book across 26 positions, with Bitcoin miners accounting for roughly $1.99 billion. Core Scientific held the largest stake at $666 million, followed by Riot Platforms at $468 million and IREN at $433 million. Miner exposure rose 79% during the second quarter, while Riot's position increased 229%.

Griffin said Citadel had executed nearly 100 block trades worth more than $4 billion as part of the transaction. The firm reduced more than 80% of the aggregate risk from the acquisition, according to Griffin. Citadel's Wellington fund gained 5.94% in July and was up about 12% for the year at the latest report.