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 chips to their limits, prompting companies to explore riskier debt markets to secure funding for their operations. Following the sale of $175 million in bitcoin last month, Core Scientific, formerly a major bitcoin miner, is now building six AI-capable data centers, with CoreWeave leasing the capacity under a 12-year deal that could 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 large deals, including recent offerings tied to Google-backed data centers and CoreWeave, which collectively raised $6.7 billion.
The company plans to use the bond proceeds to repay existing debt, fund reserves, and support construction costs across several states if necessary. With the AI buildout requiring significant capital investment, Core Scientific's pivot from bitcoin mining to AI hosting is driven by the pursuit of higher profit margins. After emerging from reorganization in January 2024 and being relisted on Nasdaq, the company is now focused on leveraging its existing assets, including data centers and power contracts, to host AI-powered computers and attract major hyperscalers like Microsoft and Google.