Core Scientific is set to raise $3.3 billion through a high-yield bond sale, further solidifying its transition to AI-focused data center operations. The surge in demand for AI services has led to a significant strain on data centers, power supply, and advanced chip technology, prompting companies to seek funding from riskier debt markets to support their operations.
Following its sale of $175 million in bitcoin last month, Core Scientific is now building six data centers to support AI workloads, with a 12-year lease agreement with CoreWeave that is 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 plans to use the proceeds to repay existing debt, fund reserves, and support construction 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 significant challenges due to rising power costs and a declining bitcoin price. With its existing data centers and power contracts gaining new value as hosting sites for AI computers, Core Scientific is among the first miners to make a large-scale pivot, attracting investor attention and fueling the AI push.