Swan Bitcoin CEO says AI bond boom may support BTC via Treasury market strain

Swan Bitcoin CEO Cory Klippsten said heavy bond issuance by big tech to fund AI infrastructure investment could end up supporting Bitcoin by adding to the U.S. government’s Treasury funding burden. Klippsten said AI is not the main driver of currently high Treasury yields, arguing fiscal deficits, inflation, economic growth and Federal Reserve policy have had a much larger impact. Still, he said the five hyperscalers, or large-scale data center operators, are set to issue about $220 billion in bonds this year, adding pressure to a market that is already absorbing massive Treasury supply. If the government’s funding costs remain elevated as a result, policymakers may have greater incentive to ease monetary policy or tolerate higher inflation, he said. In that environment, Bitcoin could benefit because its supply is fixed and it has no issuing entity. Klippsten added that the link between AI and BTC lies in the bond market, not in AI agents making BTC payments.