Core Scientific Raises $500M Facility, Q4 Loss Miss Could Pressure Blockchain ETF
Core Scientific secured a $500m 364-day loan facility from Morgan Stanley with a $500m accordion option up to $1bn at SOFR+250bps to fund data-center expansion. Its Q4 adjusted loss of $0.29 per share and $79.8m revenue miss could pressure the Amplify Transformational Data Sharing ETF, where it holds 3.82%.
1. Loan Facility Details
Core Scientific closed the initial tranche of a $500 million 364-day loan facility provided by Morgan Stanley, carrying interest at SOFR plus 250 basis points. An accordion feature allows the total commitment to rise by another $500 million to $1 billion, subject to standard conditions.
2. Q4 Financial Performance
In the fourth quarter, Core Scientific reported an adjusted loss of $0.29 per share and revenue of $79.76 million, falling short of consensus estimates. Liquidity at quarter-end stood at $533.4 million, split between $311.4 million in cash and $222.0 million in Bitcoin holdings.
3. Impact on Amplify Transformational Data Sharing ETF
Core Scientific represents 3.82% of the Amplify Transformational Data Sharing ETF. The mix of increased leverage and earnings shortfall could heighten volatility and influence ETF returns given the company’s significant weighting.