Core Scientific is set to raise $3.3 billion through a high-yield bond sale, marking a significant step in its transition to AI-focused data center operations. The surge in demand for AI services has pushed data centers to their limits, prompting companies to explore riskier debt markets for funding. Following the sale of $175 million in bitcoin last month, Core Scientific is building six AI-capable data centers, with CoreWeave leasing the capacity under a 12-year agreement that could generate around $10 billion in revenue. This move is part of a larger trend, with AI infrastructure borrowers raising $17.9 billion in junk bonds so far this year.
Core Scientific plans to use the proceeds to repay existing debt, fund reserves, and support construction across several states. The company's pivot from bitcoin mining to AI hosting is driven by the pursuit of higher margins, as the bitcoin mining industry faced significant challenges due to rising power costs and a decline in bitcoin price.