Core Scientific is set to raise $3.3 billion through a high-yield bond sale, further solidifying its shift towards AI-centric data center operations. The surge in demand for AI services has pushed data centers to their limits, prompting companies to explore riskier debt markets to secure funding for development. Following the sale of $175 million in bitcoin last month, Core Scientific is building six data centers to support AI workloads, with a 12-year lease agreement to 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 bond sale proceeds will be used to repay existing debt, fund reserves, and support construction across multiple states if costs exceed available funds. The company's pivot from bitcoin mining to AI hosting is driven by the pursuit of higher margins, as the bitcoin mining industry faces challenges due to rising power costs and decreased profitability.