Key Takeaway:
- Miners finance AI/HPC data centers via high-yield bonds around 7–9%.
- Recent deals: CoreWeave 9.25%, Applied Digital 9.2%, TeraWulf 7.75%, Cipher Mining 6–7%.
- Execution risk dominates, with front-loaded capex and dependence on power, contracts, utilization.
A cohort of crypto miners and AI/HPC infrastructure builders is turning to high-yield bonds to finance data-center capex. As reported by Cointelegraph, recent deals have priced around 7%–9%, with CoreWeave near 9.25%, Applied Digital about 9.2%, TeraWulf near 7.75%, and Cipher Mining roughly 6%–7%. The pricing implies lenders view these as growth credits rather than utility-like paper.
Funding blueprints typically blend site acquisition, power interconnection, and accelerated server procurement, all front-loaded before revenue ramps. Returns hinge on power and cooling availability, contract enforceability, and time-to-utilization. Execution risk is therefore central, especially for miners repurposing facilities for AI workloads.
According to Goldman Sachs, AI-linked borrowing is producing divergent profiles: investment-grade names face issuer-specific underperformance, while high-yield credits show broader sector weakness tied to execution risk. That split reflects balance-sheet strength, contract quality, and sensitivity to delays and overruns. It also distinguishes hyperscaler-adjacent IG issuers from miners pivoting into AI/HPC.
Macro spillovers are possible as the supply of AI-capex debt grows and leverage rises. Said Torsten Sløk, chief economist at Apollo Global Management, “Spending on AI infrastructure could drive up interest rates, and investors must closely examine how AI expansion is being funded.”
AllianceBernstein’s 2026 outlook flags wider credit dispersion, particularly among BBB to single-B issuers exposed to capacity, timing, and demand risks. The report also warns of stranded-asset risk if sites lack sufficient grid access or network connectivity. For investors, scrutiny centers on offtake quality, power procurement and hedging, leverage and interest coverage, capex buffers, and covenant protection.
At the time of this writing, Bitcoin trades near 65,618 with sentiment marked Bearish and volatility about 9.08% (High). Recent metrics show 11 of 30 green days, an RSI near 42.32 (Neutral), and SMA50/200 around 79,499/98,192. This backdrop may influence miners’ cash generation and the appeal of debt-funded AI/HPC pivots.
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