debt

The U.S. Department of the Treasury stated that total interest expenditure on debt for fiscal year 2026 reached a record $1.36 trillion, an increase of $144 billion from the previous fiscal year, representing a growth rate of 12%.

Larry Fink, CEO of the world's largest asset management company BlackRock, stated in an interview with CNBC on Wednesday that if the United States implements "some kind of pause" on data center construction, it will plunge the U.S. economy into recession. He said, "A large part of our economy is built on such capital expenditure expansion." Data centers are buildings that house a large number of computers and provide computing power for artificial intelligence. Fink's remarks were in response to calls to halt data center construction due to concerns about environmental impacts.Fink dismissed concerns about data centers, stating that most fears are based on "misinformation," and emphasized that "data centers are not the problem." He also pointed out their demand for labor in construction, energy infrastructure, and AI computing hardware. A survey by the Pew Research Center shows that at least 49% of Americans believe data centers negatively impact the environment and the quality of life for surrounding residents. Moody's estimates that U.S. capital expenditure on data centers will reach $700 billion this year, accumulating between $2.4 trillion and $2.48 trillion by 2030, with the global total reaching $7 trillion by the end of this decade.Fink also warned about the government debt issue, stating that the U.S. fiscal deficit is having a serious impact, with national debt rising from $8 trillion in 2000 to $40 trillion in 2026, "an increase of $32 trillion over 26 years," causing a huge shock to credit demand and leading to larger government bond auction sizes. He believes that private capital needs to be unleashed to drive the U.S. economy to achieve 3% growth. BlackRock saw a net inflow of $205 billion in the third quarter, with revenue growth of 19%, adjusted earnings per share increasing by 38% year-on-year, and operating profit margin rising to 47.8%.

The IMF stated that the economic growth in the United States is insufficient to quickly address the expanding government debt and fiscal deficit issues, and other measures are needed to improve the fiscal situation. IMF President Kristalina Georgieva said in Bangkok that although higher economic growth helps alleviate the debt burden, relying solely on growth may not be enough to offset the pressures brought by high deficits and high interest expenditures.

Bitcoin News posted on the X platform that the education company Genius Group purchased 10 Bitcoins, valued at $854,000. This is the company's first repurchase after selling all Bitcoin reserves on April 1 and repaying $8.5 million in debt.As of February 2025, Genius Group has accumulated a total of 440 Bitcoins, but was affected by a New York injunction for about a year due to a dispute with LZG International. The U.S. Court of Appeals for the Second Circuit lifted the freeze order on August 31, and CEO Roger James Hamilton views this purchase as a signal for the company to start accumulating Bitcoins again.

U.S. Treasury and Eurozone government bond yields continue to rise, with U.S. borrowing costs nearing decades-high levels. French government bonds are underperforming compared to other Eurozone countries, as investors express concerns about whether France can reduce its fiscal deficit to 5% of GDP by 2027.MainSky Asset Management Chairman Schulte pointed out that French debt is growing at an annual rate of about 8%, and if this continues, the debt-to-GDP ratio could reach 130% by the end of 2027.

The President of the International Monetary Fund (IMF), Kristalina Georgieva, stated that governments must urgently respond to the challenges posed by the imbalanced development of artificial intelligence, long-term energy shocks, and record levels of debt accumulation. She pointed out that the AI boom is driving inflation, and energy and food shocks will also push up inflation. Georgieva urged central banks in various countries to adopt a cautious hawkish stance.

IMF President Kristalina Georgieva stated that global public debt is about to exceed 100% of global GDP, with developed economies performing the worst in terms of high debt burden.

According to Bitcoin.com, Ray Dalio, the founder of Bridgewater Associates, warned in an interview with Bloomberg that the United States may face a debt crisis in the next three years as interest payments on debt continue to squeeze other federal budget areas.Dalio pointed out that the U.S. government generates about $5.5 trillion in revenue each year and spends about $7.5 trillion, resulting in a fiscal deficit of nearly $2 trillion. Currently, the federal government spends about $1 trillion annually on interest payments, and when including maturing debt that needs refinancing, the total annual debt repayment and refinancing needs amount to about $11 trillion.Meanwhile, U.S. Treasury yields continue to rise, with the 10-year Treasury yield closing at 5.31% on October 5, and the 30-year yield reaching 5.66%, further increasing the pressure on government financing.Dalio suggested reducing spending, increasing tax revenue, and lowering interest rates to bring the fiscal deficit as a percentage of GDP down from about 6% to 3%. In terms of asset allocation, he previously recommended allocating 10% to 15% of the investment portfolio to gold, while Bitcoin only occupies a small proportion.

The yield spread between 10-year government bonds in France and Germany has risen to its highest level since 2012, continuing the significant widening trend observed on Thursday. Strategists at Commerzbank noted that the widening spread has spread to high-debt countries such as Italy, Belgium, and Greece. The spread between French 10-year government bonds and German government bonds once reached 149.17 basis points.

According to Cryptopolitan, the International Financial Association's Global Debt Monitor on September 23 shows that global debt has reached a historic high of 365 trillion dollars, an increase of 10 trillion dollars in six months, with emerging market debt rising by 6.5 trillion to 110 trillion dollars, with China contributing the most.The San Francisco Federal Reserve's report on September 28 pointed out that the share of U.S. Treasury bonds held by foreign investors has decreased from over 50% at the peak in the late 2000s to about 30% in early 2026. Since 2023, stablecoin issuers have been increasing their holdings of short-term U.S. Treasury bonds at a pace faster than Japan; the bank expects that by 2030, the demand for short-term U.S. Treasury bonds from stablecoins may nearly double to about 400 billion dollars.

Bitcoin mining company CleanSpark announced the completion of a $2.276 billion debt financing for its data center project located in Sandersville, Georgia, USA.The bond has an interest rate of 7.875%, and the raised funds will be used for project construction and to repay previously invested equity funds. The Sandersville project comes with a 20-year lease.

According to Forbes, Bitcoin approached $90,000 earlier this month. Meanwhile, global debt continues to rise, and the "currency depreciation trade" surrounding the decline in purchasing power of fiat currency has become one of the factors driving up assets like Bitcoin and gold.Data from the Institute of International Finance shows that global debt increased by $10 trillion in the first half of this year, surpassing $365 trillion in total. The U.S. debt has exceeded $40 trillion, with annual interest payments rising to $1.27 trillion, surpassing defense and Medicare spending, and only lower than Social Security spending. The institute warns that as benchmark interest rates rise, interest costs will also increase.Nic Puckrin, founder of Coin Bureau and cross-asset analyst, stated that the current environment is favorable for "currency depreciation assets" like Bitcoin and gold, which is part of the reason for Bitcoin's recent rise. The larger the debt of major economies, the more likely it is to suppress real borrowing costs and allow inflation to erode the real value of debt, thereby enhancing the attractiveness of such trades.Analysts from The Kobeissi Letter pointed out that the purchasing power of the dollar has declined by 23% since 2020; if assets only increased by 30% during the same period, investors have essentially just broken even in terms of real purchasing power. The U.S. inflation rate has been above the Federal Reserve's 2% target for 60 consecutive months.

According to Bitcoin Magazine, former Chairman of the U.S. Commodity Futures Trading Commission Chris Giancarlo stated in an interview with Bitcoin Magazine that the expansion of government spending and currency depreciation has made Bitcoin's value proposition more prominent than ever. He believes that Bitcoin's fixed supply and scarcity make it a digital form of gold, and it is expected to become a monetary anchor in the future.Giancarlo pointed out that the Federal Reserve's interest rate hikes and the continuous rise in U.S. debt levels will actually reinforce the value logic of Bitcoin. He also mentioned that the failure of the CLARITY Act to pass does not constitute a setback for Bitcoin, as the trend towards tokenized currency is irreversible. He anticipates that by 2036, all securities issuances will be tokenized.Regarding stablecoins, Giancarlo mentioned the GENIUS Act and its impact on the demand for U.S. Treasury bonds. He also reflected on his journey of becoming interested in Bitcoin after the 2008 financial crisis, as well as his experience of being dubbed the "Crypto Dad" due to his friendly attitude towards the crypto industry.

The U.S. Treasury Department announced that it will repurchase up to $6 billion of longer-term government bonds on Thursday, which is three times the $2 billion limit announced in early August. The yield on 30-year U.S. Treasuries briefly rose to 5.38% during the session. In response to criticism of market intervention, Treasury Secretary Yellen defended that market prices deviate from equilibrium levels.The International Financial Association warned that this move does not address the structural issues of debt growth.

According to the Financial Times, as borrowing costs rise, Wall Street expects the United States to issue about $1 trillion in short-term debt.

Zhiyu (02513.HK) stated in a conference call with analysts and investors that the company has just completed a refinancing of $5 billion with a "small equity, large debt" structure, which was driven by the demand for computing power expansion.After the release of GLM-5 in February, the demand for model calls surged tenfold, and nearly all of the company's computing power reserves were depleted within the week of the release, forcing the suspension of the main product, Coding plan. In response, Zhiyu actively addressed the situation, completing a $4 billion refinancing in July, and finally made a large-scale layout for computing power expansion; after refinancing another $5 billion on September 11, it firmly continued to expand its computing power layout.After this expansion, Zhiyu's computing power has taken shape and is now able to support the company's rapid business growth and the continuous research and development of larger-scale models.

AI Infrastructure Financing Agreement USD.AI announced that it has secured $40 million in stablecoin revolving debt financing from the crypto-native asset management company K3 Capital to support the launch of new financing products. This financing provides short-term credit collateralized by sUSDai, which can be withdrawn, repaid, and reused on demand.The loan term for USD.AI is three years with monthly amortization, and the cycle for funds entering and exiting sUSDai is shorter. K3 Capital co-founder Kiril Nikolov stated: K3's strategy is to identify inefficiencies in such market structures and support trusted teams willing to provide short-term credit collateralized by sUSDai. David Choi, CEO of Permian Labs (the developer of USD.AI), mentioned that the company is preparing to launch new products that require more flexible short-term funding sources, and K3 designed the on-chain credit arrangement accordingly.This financing builds on the existing liquidity relationship between the two parties. USD.AI provides non-dilutive financing to AI infrastructure operators, with loans being non-recourse and secured by underlying GPU infrastructure. Previously, USD.AI also announced that it secured $100 million in stablecoin debt financing from Bullish. K3 Capital has been managing strategies such as interest rate arbitrage and liquidity provision since 2021.

The International Financial Association report shows that as of August this year, the inflow of debt funds into emerging markets reached 242.9 billion USD, an increase from 212 billion USD in the same period last year; the outflow of equity funds from emerging markets reached 88.1 billion USD, significantly up from 7.4 billion USD in the same period last year.

According to Bloomberg, a fund under Blue Owl Capital has led a $2.4 billion debt financing to support cloud service provider Iren in purchasing NVIDIA's Blackwell Ultra GPU for its data center campus in Canada.The financing includes a $1.2 billion senior secured term loan and an equivalent amount of senior secured notes, structured to allow Iren to procure equipment in phases over a specific period. Pacific Investment Management Company is also one of the guarantors of this financing. Documents show that the financing interest rate is 9%, with a term of two and a half years.