Core Scientific is poised to raise $3.3 billion through a high-yield bond sale, marking a significant step in its strategic shift towards artificial intelligence-driven data center operations. The surge in demand for AI services has pushed data centers, power supply, and advanced chip technology to their limits, prompting companies to explore riskier debt market options to fund their operations.
Core Scientific, formerly a prominent bitcoin miner, recently sold $175 million in bitcoin to further its AI-centric pivot. Borrowers associated with AI infrastructure have secured $17.9 billion in high-yield bonds so far this year, according to Bloomberg.
Core Scientific is building six data centers designed to support AI workloads, with the capacity leased to CoreWeave under a 12-year agreement that could generate around $10 billion in revenue. This move follows a series of large-scale deals, including recent offerings tied to Google-backed data centers and CoreWeave, which collectively raised $6.7 billion.
Core Scientific plans to utilize the proceeds to repay existing debt, fund reserves, and support construction across multiple states if costs exceed available funds, underscoring the capital-intensive nature of the AI buildout. The company currently holds less than 1,000 bitcoin, according to CFO Jim Nygaard.
Core Scientific's pivot from bitcoin mining to AI hosting is driven by the pursuit of more lucrative margins. The company's shares have risen by approximately 6% and are up nearly 42% this year, while bitcoin prices have fallen by 11%.