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 led to increased pressure on data centers, power supply, and advanced chip technology, prompting firms to explore riskier debt markets to secure funding. Following the sale of $175 million in bitcoin last month, Core Scientific, formerly a prominent bitcoin miner, is now building six AI data centers with a 12-year lease agreement with CoreWeave, potentially generating $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 significant deals, including recent offerings tied to Google-backed data centers and CoreWeave, which raised a combined $6.7 billion. The company intends to use the bond sale proceeds to repay existing debt, fund reserves, and support construction projects across multiple states. With the AI sector experiencing rapid growth, Core Scientific's pivot from bitcoin mining to AI hosting has been driven by the pursuit of higher margins. The company's shares have seen a significant increase, with a 6% rise on Tuesday and a 42% increase this year, amidst a decline in bitcoin prices.