Core Scientific is poised to secure $3.3 billion in funding through a high-yield bond sale, further solidifying its transition into the AI-driven data center sector. The surge in demand for AI services has led to increased pressure on data centers, power supply, and advanced chip technologies, prompting companies to explore riskier debt markets to support their operations. Following the sale of $175 million in bitcoin last month, Core Scientific, formerly a prominent bitcoin miner, is now building six data centers designed to support AI workloads, with a 12-year lease agreement with CoreWeave that could generate around $10 billion in revenue. This move is part of a larger trend, with AI infrastructure-related borrowers raising $17.9 billion in junk bonds so far this year.
Core Scientific's decision follows a series of significant deals, including recent offerings tied to Google-backed data centers and CoreWeave, which collectively raised $6.7 billion. The company plans to utilize the proceeds to repay existing debt, fund reserves, and support construction projects across multiple states, highlighting the capital-intensive nature of AI development.
With its pivot from bitcoin mining to AI hosting, Core Scientific is now focused on maximizing margins, having emerged from reorganization in January 2024 and relisted on Nasdaq under the ticker CORZ. The company's shares have seen a significant increase, with a 6% rise on Tuesday and a nearly 42% increase this year, while bitcoin prices have fallen by 11%.