Bitcoin Soars as Hyperscalers Outbid US Government for Access to Capital

Hyperscalers like Amazon and Meta are issuing massive amounts of debt to fund their AI booms, crowding out US government borrowing and forcing Treasury Secretary Scott Bessent to threaten yield curve control, a 'Bessent Put.'

This move is not about actually controlling yields, but rather a psychological tactic to convince investors that the government will prevent yields from rising uncontrollably.

The result is an unprecedented crowding out effect, where the very companies building the AI future are outbidding the US government for access to capital.

Haseeb Qureshi, managing partner at Dragonfly Capital, believes this structural shift in how money flows through the global economy has two opposing forces: the unstoppable capital demands of AI and the unmanageable debt burden of the sovereign state.