Core Scientific is set to raise $3.3 billion through a high-yield bond sale as part of 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 markets for funding.
Following the sale of $175 million in bitcoin last month, Core Scientific, formerly a major bitcoin miner, is now building six AI data centers 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 borrowers raising $17.9 billion in junk bonds so far this year.
Core Scientific's plans include repaying existing debt, funding reserves, and supporting construction costs across multiple states. The company's pivot from bitcoin mining to AI hosting is driven by the pursuit of higher profit margins, as the bitcoin mining industry faced significant challenges due to rising power costs and a decline in bitcoin prices.