The Capital Pulse

AI cloud infrastructure provider, CoreWeave, has secured more than $20 billion in debt and equity financing this year, including a recently closed $3.1 billion loan backed by graphics processing units.

The oversubscribed facility shows the scale of institutional demand for companies and infrastructure tied to the AI buildout. Investors have aggressively poured money into the sector throughout 2026, with CryptoRank data ranking AI as the year’s most popular funding category.

In stark contrast, Bitcoin has moved in the opposite direction. The largest digital asset has fallen more than 50% from its previous peak near $126,000, even as the global money supply has expanded to record levels.

Historically, growth in global liquidity has supported risk assets, with Bitcoin often benefiting as capital moved further along the risk curve. For much of the previous cycle, the relationship appeared reliable enough that traders treated it almost as a rule.

However, that relationship has broken down this year as liquidity has continued to expand. One possible explanation is that AI has captured a larger share of the risk capital that might otherwise have supported Bitcoin’s recovery.

Why are investors funding AI infrastructure over Bitcoin?

Investors are routing tens of billions of dollars toward artificial intelligence infrastructure rather than Bitcoin because the AI sector can offer predictable revenue, income and physical collateral that Bitcoin lacks.

While Bitcoin remains a volatile, non-yielding monetary asset, AI infrastructure can provide multiyear, dollar-denominated contracts anchored by top-tier technology companies.

For context, CoreWeave’s recent $3.1 billion delayed-draw term loan facility exemplifies the structural benefits helping AI compete with crypto markets for capital.

The financing provides investors with interest income, identifiable collateral, and a fixed maturity date, while the underlying customer agreements provide visibility into CoreWeave’s projected cash flows.

Moody’s and Fitch rated the facility Ba2 and BB+, respectively, giving institutional investors a conventional credit instrument tied to demand for AI compute.

This structure allows institutional investors to assess GPU value, customer contract strength, projected cash flows and refinancing risk while gaining access to a secondary-market vehicle that offers yield.

On the other hand, Bitcoin provides no comparable revenue stream, interest payment or claim on operating assets. Its returns depend primarily on scarcity and future price appreciation.

Moreover, the scale of AI spending has broadened those opportunities for investors. The Bank for International Settlements (BIS) estimates that the five largest hyperscalers will spend more than $1 trillion on AI-related capital expenditure across 2025 and 2026.

In view of this, Pierre Rochard, CEO of The Bitcoin Bond Company, said the capital rotation is fundamentally a race to secure critical supply bottlenecks. According to him, the AI boom requires an unprecedented physical buildout across power generation, specialized chips and cooling systems.

So, investors are financing tangible assets tied to massive, immediate corporate demand for computing power. And unlike the “software eats the world” era, which multiplied low-marginal-cost companies, the AI era absorbs excess savings directly into physical bottlenecks such as expensive GPUs, data centers, and power grids.

“This is why the AI boom has crowded out Bitcoin,” Rochard argued, adding that capital has rushed toward companies controlling these physical constraints. He said the market is prepaying for an industrial-scale buildout that acts as a major draw on global liquidity.

Ultimately, Rochard noted that this AI capital expenditure supercycle has absorbed the excess fiat liquidity that might otherwise flow into scarce bearer assets, making AI infrastructure a formidable competitor for institutional risk budgets.

How an AI funding reversal could benefit Bitcoin over time

However, the more difficult question facing markets is what happens if the artificial intelligence investment cycle begins to turn. While an AI downturn could trigger short-term market disruptions, the eventual capital rotation could benefit Bitcoin over the long term.

Rochard argues that the current concentration of capital in AI infrastructure will eventually create conditions for liquidity to rotate back toward digital assets. He said:

“When the AI capex cycle turns from boom to overcapacity, the capital now trapped in crowded AI tickers and infrastructure financing will search for an exit.”

According to him, that reversal could begin if earnings estimates fall, depreciation costs overwhelm margins, electricity prices rise, or debt-funded data centers encounter refinancing problems.

In that environment, investors may begin to separate the long-term usefulness of AI from the aggressive prices paid for exposure to it, recognizing that a productive technology can still produce weak investment returns.

Notably, BIS has already warned that the $1 trillion in AI commitments is outpacing free cash flow, forcing companies to rely increasingly on debt.

The BIS warned that disappointing returns could cause AI financing to retreat, turning the capital expenditure boom into an investment downturn with broader consequences for credit and financial markets.

For Bitcoin, such an AI exit could introduce short-term risks while creating potential long-term structural benefits. If an AI downturn damages highly leveraged data-center vehicles and private credit funds, the initial market response would likely be a broad retreat from risk. Investors might sell equities, credit, and crypto simultaneously to raise cash, pushing Bitcoin lower in the immediate aftermath of a credit freeze.

However, the long-term resolution could favor Bitcoin. Once the initial deleveraging concludes, capital will actively seek assets with distinct return drivers, such as government bonds, gold, and defensive equities.

Rochard argues that Bitcoin could attract part of that capital because:

“[it] is the opposite kind of asset. It has no board promising AI monetization. It has no capex budget. It has no debt maturity wall. Its issuance schedule does not accelerate because Nvidia ships a better chip or because a hyperscaler signs a power contract. It is not a claim on future corporate cash flows; it is a scarce monetary asset competing to be savings technology.”

Ultimately, Bitcoin cannot rely on an AI collapse as an automatic catalyst, but the eventual unwinding of the infrastructure trade could create an opening for capital to reconsider scarce monetary assets that carry no corporate debt, depreciation, or earnings risk.

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