Fund holds puts against chipmakers, favors crypto miners
Situational Awareness LP is holding $8.46 Billion in puts against major chipmakers.
The fund is instead investing in crypto miners such as $IREN, $CORZ, $APLD, and $RIOT, viewing them as undervalued real estate and power infrastructure.
The strategy involves converting crypto mining facilities into AI data centers, which can be done 60–70% cheaper and faster than building from scratch.
This approach may lead to reduced selling pressure on Bitcoin, driving crypto perp funding positive, with the performance of $RIOT and other miners serving as a leading indicator.