AI and Bitcoin Mining Firms Turn to High‑Yield Bonds to Finance Data‑Center Expansion
By Cointelegraph Staff – February 26 2026
The rapid growth of artificial‑intelligence (AI) workloads and the parallel shift of cryptocurrency miners toward AI‑oriented infrastructure are being underpinned by an increasingly significant flow of high‑yield bond capital. Over the past twelve months, companies linked to AI data‑center development have tapped senior debt markets for roughly $33 billion, according to a recent newsletter from TheEnergyMag. The financing trend highlights how lenders are differentiating between traditional, regulated utilities and newer, technology‑driven projects when pricing risk and return.
Bond Market Dynamics
Senior unsecured notes issued by firms at the intersection of AI and crypto have been priced at spreads of roughly 7 % to 9 % over the benchmark Treasury rate. By comparison, regulated electricity generators and other legacy energy firms typically secure financing at 4 %–5 % spreads, reflecting their status as “infrastructure” borrowers with predictable cash flows.
Data from Janus Henderson Investors, which incorporates Bank of America Global Research, shows the average coupon on newly issued U.S. dollar high‑yield debt edged down to about 7.2 % by the end of November 2025. This figure is lower than the 8 %–9 % range observed in 2023, indicating a modest easing of financing costs even as demand for capital remains robust.
The higher‑priced issuances are largely associated with firms that have either originated as digital‑asset miners or have recently pivoted to providing AI compute power. The credit profile of these companies remains classified as “growth” rather than “core” infrastructure, a distinction that drives the elevated cost of borrowing.
Recent Issuances
- CoreWeave – Two senior notes issued in May and July 2025 carried coupons of 9.25 % and 9 %, respectively.
- Applied Digital – A November 2025 issue priced at 9.2 %.
- TeraWulf – A 7.75 % coupon note.
- Cipher Mining – Two separate bonds at 7.125 % and 6.125 %.
These deals illustrate a spread of rates that correspond to each firm’s perceived credit quality, size of the project pipeline, and the extent of off‑take contracts tied to AI workloads.
The “Growth Credit” Narrative
TheEnergyMag’s analysis underscores a consistent message from the lending community: while regulated utilities continue to benefit from an “infrastructure” label, AI‑related and crypto‑linked projects are still viewed through a “growth credit” lens. Even when such projects are backed by long‑term offtake agreements, lenders price them as riskier, demanding higher yields to compensate for the operational and market uncertainties inherent in fast‑evolving technology sectors.
This stance reflects broader investor sentiment that AI data‑center construction, although capital‑intensive, carries execution risk linked to rapid hardware obsolescence, energy price volatility, and the competitive dynamics of cloud providers. Meanwhile, Bitcoin mining firms that are repurposing capacity for AI workloads are still judged against the historical volatility of cryptocurrency revenues.
Macro Context: AI Demand and Energy Consumption
The financing surge aligns with a broader macro trend: AI compute demand remains one of the most visible growth engines in the global economy. The latest earnings report from Nvidia— the world’s leading AI chipmaker—showed a 94 % increase in quarterly profit and a 73 % rise in revenue year‑on‑year, delivering $43 billion of net income on $68.1 billion of sales. Such results reinforce investor confidence in the long‑term trajectory of AI hardware spend.
Simultaneously, Bitcoin miners are planning the addition of approximately 30 gigawatts of new power capacity dedicated to AI services—almost triple the current capacity they operate. Though many of these projects remain in early planning stages, the scale of ambition signals that crypto‑related operators view AI infrastructure as a strategic priority rather than a peripheral side‑business.
Key Takeaways
| Observation | Implication |
|---|---|
| $33 billion raised via senior notes in the past year | High‑yield bond markets are a primary source of capital for AI and crypto‑linked data‑center projects. |
| Coupon rates between 7 %–9 % versus 4 %–5 % for regulated utilities | Lenders price AI/crypto projects as higher‑risk “growth” assets, demanding a risk premium. |
| Average high‑yield coupon fell to 7.2 % in late 2025 | Financing costs are marginally easing, suggesting improving market appetite despite elevated risk perception. |
| Major issuers (CoreWeave, Applied Digital, TeraWulf, Cipher Mining) secured rates above 6 % | Individual credit quality and project specifics drive spread differences among issuers. |
| Nvidia’s earnings surge & miners’ 30 GW AI capacity plan | The underlying demand for AI compute is strong, encouraging continued capital inflows despite higher financing costs. |
Outlook
Analysts expect the high‑yield bond market to remain a crucial conduit for financing the AI infrastructure supercycle, but they caution that credit spreads may stay elevated until the sector demonstrates sustained cash‑flow stability. The convergence of AI compute demand and energy‑intensive mining operations creates a unique risk profile: while the potential upside is considerable, the exposure to volatile energy prices and regulatory shifts—particularly concerning cryptocurrency—could weigh on future borrowing costs.
Investors, lenders, and corporate treasurers will be watching closely how quickly mining firms can repurpose existing hardware for AI workloads, and whether the anticipated 30 GW of capacity will translate into reliable, contracted revenue streams. Until then, the “growth credit” tag is likely to persist, keeping financing at a premium relative to traditional utility assets.
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Source: https://cointelegraph.com/news/ai-bitcoin-miners-high-yield-bonds-data-centers?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
