AI, Bitcoin Mining Firms Tap High-Yield Bonds for Data Centers

The surge in AI and data center development, fueled in part by Bitcoin miners, is being financed through a growing number of high-yield bond issuances. Companies in this sector have raised approximately $33 billion in long-term senior notes over the past year, but at interest rates significantly higher – between 7% and 9% – than those secured by traditional energy companies (4% to 5%). This reflects lenders' assessment of the risk associated with these ventures. Companies like CoreWeave, Applied Digital, TeraWulf, and Cipher Mining have recently issued bonds at rates within this range. Lenders view these investments as “growth credit” rather than traditional infrastructure, even with long-term agreements in place. The demand for AI infrastructure is underscored by Nvidia’s recent strong financial results, and Bitcoin mining companies are actively planning to expand their power capacity for AI workloads, signaling a strategic shift towards this sector.

(Source：Cointelegraph)