High-yield bond surge signals rising risk, demand in BTC mining, AI infrastructure

High-yield bond surge signals rising risk, demand in BTC mining, AI infrastructure

AI and crypto-linked issuers are paying up to 9% for debt as lenders demand higher returns than traditional utilities.

The AI and data center boom partly driven by Bitcoin miners is increasingly being financed through high-yield bond issuance, underscoring how lenders are pricing both risk and opportunity in the sector.

According to TheEnergyMag’s latest newsletter, companies tied to AI data center development have raised about $33 billion in long-term senior notes over the past 12 months, excluding convertible debt — bonds that can later be converted into equity and typically carry different risk dynamics.

The interest rate spread is notable: While regulated utilities and traditional energy companies generally borrow at 4% to 5%, AI- and crypto-linked issuers pay closer to 7% to 9%.

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