Bitcoin mining shares faced persistent overhead supply for roughly three weeks after a high-profile artificial intelligence fund transferred a large equity book to Citadel. On Friday, Ken Griffin informed clients that the firm had already unwound more than 80 percent of that risk.

The positions originated with Situational Awareness, the AI-focused vehicle managed by former OpenAI researcher Leopold Aschenbrenner. The fund recorded a 439 percent gain in the first half of 2026. Operating with approximately four-to-one leverage, it then lost 67 percent in July and transferred about $10 billion of stock to Citadel on July 30.

June Holdings Revealed Concentrated Miner Exposure

The fund’s final 13F filing before the transfer, covering the period ended June 30 and submitted on August 14, showed a $20.24 billion portfolio concentrated in just 26 positions. Bitcoin mining companies accounted for $1.99 billion of that total, less than 10 percent of the overall book yet 79 percent higher than the previous quarter.

Core Scientific formed the largest mining holding at $666 million. Riot Platforms stood at $468 million after rising 229 percent in the quarter. IREN held $433 million, CleanSpark $179 million, and a newly established $152 million stake sat in Keel Infrastructure, the entity formerly known as Bitfarms.

Aschenbrenner’s interest in the sector centered on power capacity rather than direct Bitcoin exposure. Mining operators already controlled substantial grid resources that could serve expanding AI data-center demand.

Hedge Reduction Left Portfolio Exposed

The larger vulnerability lay in semiconductor holdings. In March the fund carried roughly $8.5 billion of put options against Nvidia, Oracle, Broadcom and related names. By June 30 those hedges had largely disappeared. In their place stood $12.5 billion of outright long positions, with Sandisk and Micron alone representing 55.6 percent of the portfolio.

When chip stocks declined in July, the leveraged book lacked meaningful downside protection. Mining shares became collateral damage in the broader liquidation.

Rapid Distribution Through Block Trades

Citadel moved the inherited risk through nearly 100 block trades totaling more than $4 billion. The transactions included the largest intraday blocks of the year in ten separate names.

The firm acquired the portfolio at a discount. Several Citadel funds subsequently recorded sharp gains. With more than 80 percent of the aggregate exposure already exited, forced selling pressure on the mining sector has eased substantially.

Broader market conditions have also improved. Bitcoin advanced approximately 7 percent in a single session to about $77,309, lifting its market capitalization near $1.55 trillion. Mining equities are now trading more on their own operational metrics, including power-hosting agreements and quarterly production results, rather than the overhang of a single large seller.