Core Scientific slides as $3.3B notes financing and Pecos AI expansion reset risk
Core Scientific shares fell about 8% to around $20 on April 28, 2026 as investors digested the company’s $3.3 billion senior secured notes deal and what it implies for leverage and project execution risk. The selloff came a day after Core Scientific detailed a major Pecos, Texas AI data-center expansion plan targeting ~1.5 GW of gross power capacity.
1. What’s moving the stock
Core Scientific (CORZ) is down roughly 8% in Tuesday trading (April 28, 2026), a pullback that lines up with investor focus shifting to balance-sheet risk after the company’s large debt financing. The company recently priced $3.3 billion of 7.750% senior secured notes due 2031, with the transaction expected to close on May 6, 2026, and proceeds directed to debt-service reserves and to repay delayed-draw term loans tied to a previously announced credit facility. (investors.corescientific.com)
2. Why the financing matters now
The notes package is secured by first-priority liens on substantially all assets of the issuer and subsidiary guarantors, and it includes a completion guarantee tied to data-center development projects in multiple states—features that highlight both the scale of the buildout and the execution burden. Equity investors often react negatively when large incremental debt adds fixed obligations and narrows room for error, even if the stated use includes refinancing and funding growth initiatives. (investors.corescientific.com)
3. Expansion headline adds ambition—and scrutiny
On April 27, 2026, Core Scientific laid out a plan to scale its Pecos, Texas campus to approximately 1.5 gigawatts of gross power (about 1.0 GW leasable), including converting 300 MW currently used for bitcoin mining into AI infrastructure and securing an additional 300 MW of gross power capacity under contract with its utility provider. The company said the site is available for lease, with initial capacity still expected in early 2027—timing that can amplify near-term volatility when the market is focused on funding, construction milestones, and lease-up risk. (investors.corescientific.com)
4. What to watch next
Key upcoming catalysts include the scheduled first-quarter fiscal 2026 earnings release after the market close on May 6, 2026—the same date the company said the notes offering is expected to close, subject to customary conditions. Investors will be watching for updates on funding needs, construction progress, and customer demand for high-density colocation as the company accelerates its shift toward AI and HPC workloads. (morningstar.com)