Core Scientific is set to raise $3.3 billion through a high-yield bond sale, marking a significant step in its strategic shift towards AI-driven data center operations. The surge in demand for AI services has led to a shortage of data center capacity, power supply, and advanced chips, prompting companies to explore alternative debt markets to fund their growth. Following the sale of $175 million in bitcoin, Core Scientific is now building six data centers designed to support AI workloads, with a 12-year lease agreement with CoreWeave expected to generate around $10 billion in revenue.
This move is part of a larger trend, with AI infrastructure-related borrowers securing $17.9 billion in junk 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 utilize the proceeds to repay existing debt, fund reserves, and support construction costs across multiple states, highlighting the capital-intensive nature of AI infrastructure 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 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 declined by 11%.