Convertible bond financing soars: Corporate cost pressures amid AI boom push the scale to $166.5 billion

2026-01-08 14:40:11

【Crypto World】A recent interesting phenomenon worth noting is that convertible bonds are becoming increasingly popular as a financing tool.

In simple terms, many companies, amid the booming AI hype, are desperately spending money on AI projects, with expenditures growing ever larger. To reduce financing costs, they are turning to flexible financing methods like convertible bonds. Why? Because compared to traditional bonds or equity financing, this approach offers investors more room for imagination and actually lowers costs.

According to market data, the issuance scale of convertible bonds is expected to surge to approximately $166.5 billion in 2025. This is the highest level since 2001 and is approaching a historical record. Even more impressively, the current issuance speed is already the fastest in the past 24 years.

What does this reflect? First, the capital hunger brought about by the AI boom; second, increasing acceptance of such tools by investors. Of course, this also hints that many companies may face greater financing pressures. For us, understanding the evolution of this financing trend is helpful in judging market cycles and capital flows.

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SatoshiSherpa

· 01-10 13:33

166.5 billion? This number really can't be held back anymore, it feels a bit like a bubble. --- Convertible bonds are indeed a clever move, painting a rosy picture for investors, reducing costs for companies, and meeting everyone's needs. --- Burning money to this extent and still leveraging more, AI has really driven these companies crazy. --- Fastest rise to a historical high in 2024... this pace is a bit intense, gotta watch out for pitfalls. --- Basically, it's a collective manifestation of capital desperation; whoever thinks of new ways first will profit. --- Convertible bond issuance skyrocketing = the market is betting that companies can deliver on AI, if they bet right, it's a huge profit; if wrong, it’s... --- I'm a bit worried this might become the next risk point; this wave of convertible bond issuance is too crazy.

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All-InQueen

· 01-10 07:44

It's another feast of convertible bonds. This round of $166.5 billion in scale really can't be contained anymore. To be honest, companies are burning money in the AI trap until they have no way out, resorting to creative financing. The problem is that these tools are being used more and more recklessly. Who will bear the risks in the end?

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GhostAddressMiner

· 01-08 15:10

$166.5 billion is quite a shocking number, but have you ever thought about where its on-chain footprint is? --- Both AI and convertible bonds, in simple terms, mean the fund transfer trajectory is too clear, and they need to find a place to hide the money. --- Fastest speed in 24 years? I want to see whose dormant wallets are hiding behind these financing addresses. --- The greater the imagination space, the bigger the vulnerabilities. Early token holder addresses with contract issues will eventually need to move. --- $166.5 billion just flowed in like that; how obvious must the abnormal transaction patterns be? --- In the AI boom, the financing game ultimately revolves around probing for funds; sooner or later, the original addresses will be exposed. --- High acceptance among investors? I see it more as a suspicious fund flow signaling an exit. --- This wave of convertible bond issuance is happening at an absurdly fast pace, it feels like something big is about to happen.

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FOMOSapien

· 01-08 15:09

I think this is the real financing logic. Convertible bonds are just a legitimate way for companies to "paint a big picture"... It's so satisfying when convertible bonds are dumped; I can't wait to see the moments when leverage explodes. 166.5 billion, sounds huge but when divided, it's actually just that. The key is still who can survive until the conversion day. Burning money and raising funds again—this routine is just the standard for the AI bubble. When this wave of convertible bonds rises, both bulls and bears can make money. It really is a winner-takes-all game...

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BearMarketBuilder

· 01-08 14:57

166.5 billion? Haha, another new way to cut leeks... AI spending money is fine, anyway someone has to buy the bonds issued... This trick is too deep, convertible bonds are hot again, and the next big explosion is right here.

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