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JPM High Yield Credit Research has initiated coverage on CIFR, WULF, and APLD bonds with a very bullish note. matthew sigel highlighted market dynamics, observing that there is a significant global shortage of computing resources.
This suggests that credit investors may see value in these firms amid growing demand for compute power.
Sigel previously reported that HPC projects have adopted improved contract structures, with estimated EBITDA margins rising from 70% to the mid-90% range, according to recent coverage. He also cited Adobe survey data showing that U.S. workers' use of AI for tax filing increased to 26 percent in 2026, up from 11 percent in 2024, as detailed in a separate article. These developments add context to the current focus on demand for computing resources.