Walleye Capital Restructures After 5.9% Loss as $500 Million Data Center Loan Sale Draws Attention

Walleye Capital, a hedge fund managing approximately $17 billion, is reportedly restructuring parts of its equities business and preparing to return investor capital after losing 5.9% in October, its worst monthly performance since March 2020.
Separately, Bloomberg reported that an unidentified seller was auctioning approximately $500 million in data center loans. Market speculation has linked the potential sale to Walleye, but the seller's identity has not been confirmed.
The reported loan portfolio includes approximately $25 million in exposure associated with the New Mexico Stargate project. Oracle has also reportedly sought contractual relief through a force majeure notice connected to the project. The circumstances and implications of that notice remain unclear.
If a connection between the loan auction and Walleye is established, it could provide evidence that pressure on AI infrastructure investments is extending beyond public equities into private credit markets.
For now, the restructuring and loan auction should be treated as separate reported developments. The auction's outcome may offer insight into investor demand and pricing for debt financing tied to AI data center construction.