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 pushed data centers to their limits, prompting firms to explore riskier debt markets for funding. Following the sale of $175 million in bitcoin, Core Scientific is building six data centers to support AI workloads, with a 12-year lease agreement with CoreWeave that could generate around $10 billion in revenue.
This move is part of a larger trend, with AI infrastructure borrowers raising $17.9 billion in junk bonds this year. Core Scientific will use the proceeds to repay existing debt, fund reserves, and support construction projects across several states.
The company's pivot from bitcoin mining to AI hosting is driven by the pursuit of higher margins, as the bitcoin mining industry faces declining profitability due to rising power costs and increased competition.