High-Yield Bond Surge Signals Rising Risk in BTC Mining, AI

What to Know

$33 billion in long-term senior notes has been raised by AI and crypto-linked data center firms over the past 12 months, according to TheEnergyMag
7% to 9% coupon rates face BTC mining and AI issuers, well above the 4% to 5% that regulated utilities typically pay
Nvidia posted $43 billion in net income and $68.1 billion in revenue for Q4, reinforcing massive AI infrastructure demand
Bitcoin miners are planning roughly 30 gigawatts of new AI-focused power capacity, nearly triple their current operations

High-yield bond issuance tied to BTC mining and AI data center projects has surged over the past year, with crypto-linked and artificial intelligence companies paying coupon rates as high as 9% to secure financing. The trend highlights how lenders continue to treat the sector as growth credit rather than traditional infrastructure, with firms raising approximately $33 billion in long-term senior notes, according to TheEnergyMag.

$33 Billion in High-Yield Bond Issuance Over 12 Months

Firms involved in AI data center construction have raised approximately $33 billion in long-term senior notes during the past 12 months, excluding convertible debt, according to TheEnergyMag's latest newsletter. Convertible bonds, which can be exchanged for equity at a later date, carry distinct risk profiles and were not included in that tally.

The interest rate gap is significant. Regulated utilities and conventional energy firms typically borrow at 4% to 5%, while AI- and crypto-linked issuers face costs in the 7% to 9% range. The average coupon on newly issued U.S. dollar high-yield debt sat near 7.2% in late 2025, down from 8% to 9% in 2023, according to Janus Henderson Investors citing BofA Global Research data as of November 30.

Which BTC Mining Firms Are Paying the Highest Rates?

TheEnergyMag highlighted several notable recent debt raises from current and former digital asset miners pivoting into AI infrastructure. CoreWeave issued bonds at 9.25% and 9% in May and July 2025, while Applied Digital priced its offering at 9.2% in November. TeraWulf secured financing at 7.75%, and Cipher Mining raised capital at 7.125% and 6.125%.

Those at the upper end of the spectrum are predominantly companies with roots in digital asset mining that have transitioned toward AI computing, indicating that capital costs remain comparatively steep for the cohort.

Regulated load and contracted generation still get treated as infrastructure. AI and bitcoin, even when attached to long-term offtake agreements, are still treated as growth credit.
— TheEnergyMag

Nvidia Earnings and AI Build-Out Fuel Momentum

Despite concerns over potential overspending and overcapacity, the AI data center build-out stands as one of the most visible economic trends and a significant driver of Wall Street deal flow. That momentum was underscored on Wednesday when chipmaker Nvidia posted exceptional fourth-quarter results, with profit surging 94% and revenue climbing 73% year-over-year. Nvidia reported $43 billion in net income and $68.1 billion in total revenue.

What Comes Next for BTC Mining and AI Infrastructure?

Bitcoin mining companies are currently planning approximately 30 gigawatts of new power capacity aimed at serving AI workloads, nearly triple the capacity they presently operate, according to industry reports. Much of this planned expansion remains in development pipelines or early-stage planning, but the industry has clearly signaled that AI infrastructure represents a strategic priority moving forward.