The cryptocurrency mining sector is absorbing two contrasting signals. Citadel has unwound more than 80% of the risk it acquired from AI-focused hedge fund Situational Awareness, potentially removing a major forced-selling overhang from Bitcoin mining equities. At the same time, energy firm Olenox Industries disclosed a working-capital deficit of about $22.9 million that raises substantial doubt about its ability to continue as a going concern.
According to a June 30 filing, Citadel’s long book was $20.24 billion across 26 positions. Bitcoin miners represented roughly $1.99 billion, led by Core Scientific at $666 million, Riot Platforms at $468 million, IREN at $433 million and CleanSpark at $179 million. Keel Infrastructure added another $152 million. Miner exposure rose 79% during the second quarter, while the Riot position increased 229%. The strategy reflected a view that electricity and data-center infrastructure would gain value as artificial intelligence demand accelerated.
Situational Awareness, led by former OpenAI researcher Leopold Aschenbrenner, suffered a 67% loss in July after concentrated AI-linked bets moved against it. Reuters reported Citadel executed nearly 100 block trades worth more than $4 billion. Ken Griffin said the firm had reduced more than 80% of the aggregate risk. For miners, the end of forced selling could allow shares to trade more directly on Bitcoin prices, power costs, hashrate economics and infrastructure value, though it does not guarantee higher prices.
Meanwhile, Olenox Industries reported preliminary July production of 15.13 BTC, with a gross value of about $1.16 million at the Aug. 21 Bitcoin spot price of $76,371.25. The company recorded 1.02 EH/s of average operational hashrate, equal to 64% of the fleet's economic capacity, citing summer heat, low-power-mode operation and normal equipment availability. But the production figure was not equivalent to disclosed revenue, sale proceeds or available cash, and the final July hosting invoice remained unresolved.
Olenox had $3.40 million of total current assets at June 30 against $26.26 million of current liabilities. Its liabilities included $14.55 million of accounts payable and accrued expenses, lease maturities, amounts due to affiliates, credit lines, derivative liabilities, convertible notes, short-term notes and current maturities of long-term debt. The company said losses, negative working capital and negative operating cash flows raised substantial doubt about its ability to continue as a going concern, and it had no committed sources of additional financing at June 30.
Olenox acquired Bitcoin miner CS Digital Ventures in May for preliminary upfront consideration of $30 million, including $14 million of Series E preferred stock and $16 million of unsecured promissory notes. The seven seller notes carry 10% annual interest, mature in May 2029 and require interest-only payments beginning in August 2026, implying $1.6 million of simple annual interest. CS Digital generated $1.45 million of revenue and a $564,104 net loss from the May 26 acquisition through June 30. Olenox plans to convert its own natural gas into off-grid compute at a targeted cost below $0.02 per kilowatt-hour, though that plan was not part of July results. The company also announced a non-binding acquisition letter of intent on Aug. 19 with an approximately $20 million stated price, primarily in preferred stock plus common stock and cash.
