Energy Finance TAM
Capital allocation requirements of the industry
The industry that powers every other industry is by far biggest industry in TAM terms.
Over $ 3.3 Trillion was invested into energy production infrastructure in 2025 of which $2.2 Trillion was allocated to clean energy. Annual TAM is slightly higher than all of cryptos market cap at the end of 2025 to provide some context.
Nearly 75% of this capital comes from Commercial Finance sources - Banks, Capital Markets, Private Finance, close to 24% coming from State owned Enterprises via subsidies, incentives, low interest loans etc and the remaining 1% from Development Finance Institutes.
This allocation is split in a ratio of 46:54 debt:equity, with the debt portion increasing as technologies mature.
Returns range from 7% going all the way upto 15% depending on the credit risk, technology, size, history, capital mix, state support etc. K1 treasury in its initial phase will target either being the senior pool of capital or the minority equity portion of energy projects seeking funds.
Goal is to make the stablecoin an energy bond thats :
Deeply liquid
Provides high uncorelated yields
Has ready pool of capital for energy infra
Builds Kardashev 1 civilization
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