$1.7 billion hedge fund reorganization, mysterious seller auctions $500 million data center loan
2026-11-06 13:21:41
According to CoinMeta, a $1.7 billion hedge fund, Walleye Capital, is undergoing restructuring due to a mysterious seller auctioning a $500 million data center loan. The fund suffered a 5.9% loss in October, which was its worst month since March 2020. It is cutting its equity leadership and investment team and preparing to return capital to investors. Bloomberg previously reported on an anonymous seller auctioning a $500 million data center loan, and there are now speculations that this could be Walleye. Its loan portfolio includes $25 million related to a new Mexico Stargate project, and Oracle has reportedly issued a force majeure notice seeking to be exempted from contractual obligations. If confirmed, this connection could raise concerns about whether the sell-off in artificial intelligence assets is spreading to private debt financing. This auction will test the price that buyers are willing to pay.
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Source:X
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