AI Debt Surge Drives Up Treasury Yields, Pressuring Bitcoin

The recent surge in AI debt is pushing Treasury yields higher, which could pressure Bitcoin's price.

Tech firms have increased their borrowing to finance AI infrastructure, with issuance jumping from $61 billion annually based on the previous five-year average to $192 billion by late July 2026. This represents a significant increase in competition for capital among corporations and the US government, which can drive up yields and make interest-free assets like Bitcoin less attractive.

The 30-year Treasury yield reached its highest level of 2026 at 5.25% on August 14, while the 10-year Treasury yield climbed to 4.68%. Corporate bonds offer even higher returns, with Alphabet's recent 30-year debt priced around 6.4%, and Meta's bond financing a data center yielding more than 7.5%.