Core Scientific is set to raise $3.3 billion through a high-yield bond sale as it accelerates its shift towards AI-driven data center operations. The surge in demand for AI services has led to a significant strain on data centers, power supply, and advanced chip capabilities, prompting companies to explore riskier debt markets to secure funding for their operations.
Following its sale of $175 million in bitcoin last month, Core Scientific, formerly a prominent bitcoin miner, is now building six data centers designed to support AI workloads, with the capacity leased to CoreWeave under a 12-year agreement that could generate around $10 billion in revenue. This move is part of a larger trend, with borrowers linked to AI infrastructure raising $17.9 billion in high-yield bonds so far this year. Core Scientific's decision follows a series of large-scale deals, including recent offerings tied to Google-backed data centers and CoreWeave, which collectively raised $6.7 billion.
The company plans to utilize the proceeds to repay existing debt, fund reserves, and support construction across multiple states if costs exceed available funds, highlighting the capital-intensive nature of the AI buildout. With its pivot from bitcoin mining to AI hosting, Core Scientific is focusing on improving margins.
The company's shares have seen a significant increase, rising by about 6% on Tuesday and nearly 42% this year, while bitcoin prices have fallen by 11%.