Core Scientific is set to raise $3.3 billion through a high-yield bond sale as part of its strategic shift towards AI-centric data center operations. The surge in demand for AI services has led to increased pressure on data centers, power supply, and advanced chip technology, prompting companies to explore riskier debt market options to fund their operations. Following its sale of $175 million in bitcoin last month, Core Scientific, formerly a major bitcoin miner, is now building six data centers designed to support AI workloads, 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-related borrowers raising $17.9 billion in high-yield bonds so far this year. Core Scientific's decision follows a series of large-scale deals, including recent offerings tied to Google-backed data centers and CoreWeave, which raised a combined $6.7 billion.
The company plans to use the proceeds to repay existing debt, fund reserves, and support construction projects across multiple states if costs exceed available funds, highlighting the capital-intensive nature of AI development. With its pivot from bitcoin mining to AI hosting, Core Scientific is focusing on improving margins, having emerged from reorganization in January 2024 and been relisted on Nasdaq under the ticker CORZ. The company's shares have seen a significant increase, with a 6% rise on Tuesday and a 42% gain this year, while bitcoin prices have fallen by 11%.