Chipmaker Nvidia has reportedly become the latest company to capitalize on the AI-related debt boom with a planned $20 billion bond offering, highlighting continued demand for AI infrastructure and data centers that has also created up-to-date opportunities for Bitcoin miners diversifying beyond cryptocurrencies.
Bloomberg on Monday reported that Nvidia is seeking to raise at least $20 billion through a multi-part bond sale to assist finance AI-related investments and refinance existing debt.
Citing people familiar with the matter, the report said Nvidia plans to issue bonds with seven maturities ranging from two to 30 years, with the longest-maturity bonds expected to yield about 0.9 percentage points more than comparable U.S. Treasuries.
The offering highlights continued investor appetite to finance AI development and signals that one of the industry’s most influential companies expects demand for AI infrastructure to remain robust.
Source: Cointelegraph
As the dominant supplier of GPUs that support enormous language models, Nvidia is at the center of the artificial intelligence ecosystem. Its chips are widely used by hyperscale players and cloud service providers, making the company’s capital spending plans a closely watched barometer for the broader industry.
The continued development of AI has also benefited the growing number of Bitcoin miners, who have begun to transform their energy-intensive facilities and energy infrastructure to enable high-performance AI computing and hosting.
Companies that once relied almost exclusively on Bitcoin mining revenues, including HIVE Digital, TeraWulf, Hut 8 and CleanSpark, are now positioning themselves as data center capacity providers, leveraging internal infrastructure and existing power contracts to capitalize on the growing demand for computing resources.
Related: Bitcoin mining difficulty drops 10% in 11th largest downward correction
The economics of BTC mining remain under pressure
Bitcoin miners are seeking to diversify in artificial intelligence as the economics of their core cryptocurrency business become increasingly challenging, particularly in the wake of the April 2024 halving, which has intensified pressure on margins amid increased mining difficulties and operating costs.
The industry has faced what some analysts have described as “the tightest margin environment of all time,” prompting many miners to sell portions of their Bitcoin vaults, reduce leverage and seek up-to-date sources of revenue beyond cryptocurrency mining.
According to data from TheEnergyMag, Bitcoin miners sold a total of over 15,000 BTC between October and March.
Bitcoin mining companies’ treasury sales have surged since October, when BTC peaked above $126,000. Source: Energy storage
In this context, analysts expect enormous miners to transform into AI infrastructure providers. Bernstein, for example, recently said he expects IREN to derive the extensive majority of its value from its AI infrastructure, citing the rapid growth of the company’s cloud AI business.
Related: The documents show that professional investors abandoned ETF funds worth 52,000 in the first quarter. BTC
