Core Scientific Targets AI Pivot with $3.3B Junk-Bond Offering for Data Centers
Core Scientific plans to raise $3.3 billion of speculative-grade debt due 2031 to fund its pivot from Bitcoin mining into AI infrastructure under a 12-year arrangement targeting roughly $10 billion in CoreWeave-sourced revenue. Shares jumped 4.5% to $20.77, extending a 42% year-to-date rally after $1 billion in Morgan Stanley financing.
1. $3.3 Billion Junk-Bond Offering
Core Scientific plans to issue $3.3 billion of speculative-grade notes due 2031 to support its strategic shift from Bitcoin mining to AI-focused data-center operations. A portion of the proceeds will retire existing debt while the remainder will fund construction and operational costs for high-density colocation facilities.
2. AI Data-Center Expansion with CoreWeave
Under a 12-year cloud-computing partnership with CoreWeave, the company is constructing six new data centers designed to generate roughly $10 billion in cumulative revenue. Management aims to accelerate service timelines across these high-density sites to capture accelerating demand for AI compute capacity.
3. Debt Financing and Share Rally
The bond sale follows a $1 billion credit facility from Morgan Stanley and Bitcoin sales that reduced holdings below 1,000 units. Shares have risen 42% year-to-date, gaining 4.5% to $20.77 as investors respond to the company's download of mining assets and rebranding as a digital infrastructure leader.