Core Scientific is set to raise $3.3 billion through a high-yield bond sale as part of its strategic shift towards AI-driven data center operations. The surge in demand for AI services has pushed data centers and related infrastructure to their limits, prompting companies to explore alternative funding options. Following the sale of $175 million in bitcoin last month, Core Scientific, formerly a major bitcoin miner, is now building six data centers tailored 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 raising $17.9 billion in junk bonds so far this year.
Core Scientific's decision follows a series of significant deals, including recent offerings tied to Google-backed data centers and CoreWeave, which collectively raised $6.7 billion. The company plans to utilize the bond 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 AI-focused pivot, Core Scientific aims to capitalize on the growing demand for AI services and improve its profit margins.