CleanSpark's sale is the first junk-bond deal for a data center associated with Meta Platforms Inc., and buyers piled in. Money managers put in around $10 billion of orders for an offering sized at almost $2.28 billion, more than four times the supply. Morgan Stanley led the financing, according to a regulatory filing.
According to a person familiar with the deal, the notes have a five-year term and came to market at 98.5 cents per dollar, producing a yield of 8.25%. That sits roughly 1.75 percentage points above the average for BB rated debt tracked by Bloomberg. With a rush of data center issuance and rising unease about heavy capital spending, investors have been asking for bigger premiums, pushing up borrowing costs for AI infrastructure. Earlier this year, comparable transactions with investment-grade tenants cleared at yields even below 6%.
The money will go toward building a data center in Sandersville, Georgia. Anviran LLC, a Meta unit, has taken a full-site lease under a $6.6 billion agreement that lasts 20 years. Per the firm, the facility plans to start up in the fourth quarter of 2027, with Meta backing the rent and the operating expenses.
That commitment gives the junk-rated borrower a steadier revenue line to back a costly build. CleanSpark did not reply to a request for comment, and Morgan Stanley declined to comment.
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So far this year, data center developers have issued more than $3 billion in high-yield bonds, most of them supported by long-term leases with hyperscalers such as Oracle Corp. and Amazon.com Inc., Bloomberg data show. Las Vegas-based CleanSpark is part of a growing club of publicly traded Bitcoin miners shifting into data center operations to support AI, and its market value is roughly $3.63 billion. For everyday investors, the through-line is simple: the AI buildout is attracting huge demand, but at higher financing costs that could shape timelines, pricing, and who ultimately pockets the gains.
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