Core Scientific is set to raise $3.3 billion through a high-yield bond sale, further solidifying its shift towards AI-driven data center operations. The surge in demand for AI services has placed immense pressure on data centers, power supply, and advanced chip technology, prompting companies to seek alternative funding sources. Following the sale of $175 million in bitcoin, Core Scientific is now focusing on its AI pivot, having previously been a major bitcoin miner. According to Bloomberg, borrowers associated with AI infrastructure have secured $17.9 billion in high-yield bonds so far this year.
Core Scientific's six data centers, designed to support AI workloads, have been leased to CoreWeave under a 12-year agreement, potentially generating $10 billion in revenue. This move follows a series of large-scale deals, including offerings tied to Google-backed data centers and CoreWeave, which collectively raised $6.7 billion.
Core Scientific intends to utilize the proceeds to repay existing debt, fund reserves, and support construction across multiple states if necessary, highlighting the capital-intensive nature of AI development. The company currently holds fewer than 1,000 bitcoins, according to CFO Jim Nygaard. Core Scientific's transition from bitcoin mining to AI hosting is driven by the pursuit of higher profit margins.
The company's shares have seen a significant increase, with a 6% rise on Tuesday and a 42% increase this year, while bitcoin prices have fallen by 11%.