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Reading: $33 billion in bonds are fueling the AI ​​megawatt arms race
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© 2025 All Rights reserved | Powered by All News Bitcoin
Mining

$33 billion in bonds are fueling the AI ​​megawatt arms race

February 28, 2026 8 Min Read
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Table of Contents

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  • The 9% Membership: AI and Bitcoin Infrastructure
  • The world of 4-5%: present power giants
  • The unfold story is a credit standing story
  • Why a lot debt and so quick?
  • CapEx bubble or supercycle?
  • Regulation Information
  • {Hardware} and infrastructure information
  • Company information
  • monetary information

If you wish to perceive the rise of synthetic intelligence and knowledge facilities in 2026, do not simply take a look at GPUs, megawatts, or backorder bulletins.

Take a look at the bond market.

This text first appeared in Miner Weekly, a weekly e-newsletter from Blocksbridge Consulting that includes the newest information in power, computing, infrastructure and knowledge analytics from The Power Magazine. The unique article might be seen right here.

Within the final 12 months, greater than $33 billion in long-term senior bonds have been issued by only a quick checklist of bitcoin mining/AI infrastructure corporations, utilities and power producers, and that is besides convertible notes. This isn’t inventory dilution. It’s a troublesome debt: mounted coupons; Precise maturities; Actual curiosity expense.

And the distinction between who pays 4% and who pays 9% says nearly all the pieces about how the market is financing the info middle arms race.

The 9% Membership: AI and Bitcoin Infrastructure

On the high-yield finish of the spectrum, capital shouldn’t be low-cost.

Printed CoreWeave:

  • $2 billion at 9.25% (Might 2025)
  • $1.75 billion at 9.00% (July 2025)

Utilized Digital: $2.35 billion at 9.25% (November 2025)

TeraWulf: $3.2 billion at 7.75% (October 2025)

Crypto Mining (NASDAQ: CIFR):

  • $1.4 billion at 7.125% (November 2025)
  • $2 billion at 6.125% (February 2026)
See also  Fintech giant Sophie is planning a crypto comeback by the end of the year, riding the Trump-era regulatory shift

Cipher’s February deal is fascinating. In simply three months, its worth improved by a full proportion level, even because it doubled with a $2 billion problem. That implies there’s nonetheless urge for food for “computer-backed” credit score, particularly the place colocation leases and power contracts are in place.

However zoom out and examine this to utilities and controlled power producers.


The world of 4-5%: present power giants

Now take a look at the opposite facet of the ledger.

Dominion Power (NYSE: D): A number of tranches between 4.6% and 5.65%

NRG Power (NYSE: NRG): Primarily between 4.7% and 6.0%

Vistra Corp.: $2.25 billion at 4.70% and 5.35%

The Southern (NYSE: SO): a number of points grouped round 4%-5.5%

Constellation Power (NASDAQ: CEG): $2.75 billion in January 2026, in numerous tranches, largely down 5% relying on maturity

Similar macro surroundings. Similar Treasury curve. Totally different credit score costs.

The message from lenders is obvious: regulated load and contracted era are nonetheless handled as infrastructure. AI and bitcoin, even when tied to long-term buy agreements, are nonetheless handled as progress credit score.


The unfold story is a credit standing story

In case you line up these issuers by coupon, you’re going to get a tough threat scale:

  • 4%–5%: regulated utilities and diversified power producers
  • 5%–6%: extra highly effective unbiased turbines
  • 6%–9%: Bitcoin miners and AI infrastructure builders

Regulated utilities and established power producers have a tendency to take a seat within the funding grade universe, with lengthy working histories, predictable (usually regulated) money flows, and deep institutional demand for his or her roles.

See also  AI pivots, pressure on margins and a fight for survival

Alternatively, newer “computing” names (particularly these nonetheless scaling, nonetheless constructing, or nonetheless proving the sturdiness of their buyer base) usually take out loans as high-yield/speculative-grade credit score. Even once they have precise contracts, the market nonetheless costs execution threat, refinancing threat, and the truth that capex consumes money earlier than creating money.


Why a lot debt and so quick?

The widespread thread shouldn’t be cryptographic cycles. It’s the demand of the info middle.

Utilities are brazenly revising capital plans upwards. Southern now expects a $78.1 billion funding plan by 2030, with $15.9 billion in 2026 alone, explicitly citing projected load progress from knowledge facilities. Equally, Dominion flagged billions in anticipated long-term debt issuances ($6 billion to $9.5 billion in 2026) to assist infrastructure growth pushed by massive new knowledge middle clients.

On the AI ​​facet, the logic is easier: safe energy first, work out monetization later.

For miners transitioning to HPC, the debt pile is changing into the bridge between legacy bitcoin money flows and future AI leasing, assuming there’s nonetheless money movement from bitcoin mining. For AI gamers like CoreWeave, it is about scale earlier than monetization underneath hyperscale contracts.


CapEx bubble or supercycle?

That is an even bigger query hanging over all of this.

If demand for AI holds up, these coupons could seem fully rational. The debt is refinanced downwards. Property admire. Energy scarcity turns into the bottleneck.

But when demand for AI cools (or hyperscaler developments lose momentum), the 7% to 9% debt tied to IT property uncovered to merchants may shortly grow to be onerous, notably because the economics of bitcoin mining present little cushion.

See also  Sigel makes raising capital for AI look easy

Keep in mind: most of those maturities are grouped round 2030-2036. That is not too distant in infrastructure time. That is now not only a story of energy. It’s a story of stability.


Regulation Information

  • Trump says he’ll enhance US world tariff fee from 10% to fifteen%
  • Trump to announce power offers for knowledge facilities throughout State of the Union

{Hardware} and infrastructure information

  • Bitcoin Problem Will increase 15% to Push Hash Value Under $30/PH/s
  • Canaan Acquires Cipher’s Stake in Texas Bitcoin Mines in $40M All-Inventory Deal
  • Bitfarms Will get Native Approval to Advance Pennsylvania AI Information Middle Mission
  • Hearth in Wenatchee, Washington linked to Bitcoin mining exercise

Company information

  • Blue Owl Struggles to Align Debt for $4 Billion CoreWeave AI Information Middle
  • Bitdeer liquidates Bitcoin reserves whereas refinancing higher-cost convertibles
  • Cipher Mining Rebrands as Cipher Digital to Double AI Information Middle Leases
  • Cipher CEO Establishes New 10b5-1 Plan Overlaying As much as 1.5 Million CIFR Shares
  • NextEra Power to boost $2 billion in fairness models to finance power initiatives

monetary information

  • Tether tops up Bitdeer on $42M purchases after promoting close to 2025 peak
  • CoreWeave Seeks $8.5 Billion Mortgage as AI Infrastructure Debt Piles
  • Nvidia Income Tops $216 Billion as Blackwell Ramp Boosts AI Information Middle Gross sales
  • Hut 8 Pledges 4,533 Bitcoin for $200 Million Coinbase Mortgage as $BTC Slides
  • US Bitcoin exceeds 6,000 $BTC Holdings after This autumn manufacturing, ATM purchases

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Reading: $33 billion in bonds are fueling the AI ​​megawatt arms race
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