Core Scientific is set to raise $3.3 billion through a high-yield bond sale, advancing its strategic shift towards AI-focused 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 segments for funding.
Following the sale of $175 million in bitcoin last month, Core Scientific, formerly a prominent bitcoin miner, is now building six AI data centers with leased capacity to CoreWeave under a 12-year agreement, potentially generating $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 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 AI development.
The company currently holds less than 1,000 bitcoin. Having emerged from reorganization in January 2024, Core Scientific is now focused on its AI hosting pivot, driven by the pursuit of higher margins.
The shift from bitcoin mining to AI hosting is a strategic response to the evolving market landscape, with miners' existing data centers and power contracts gaining new value as hosts for AI-powered computers.