Core Scientific, a former Bitcoin miner, is embarking on a major pivot, announcing plans to issue $3.3 billion in speculative-grade debt to finance its expansion into AI infrastructure. The company, valued at approximately $6.55 billion, intends to use a portion of these proceeds to refinance existing debt.
Under a significant 12-year agreement with cloud-computing firm CoreWeave, Core Scientific is currently developing six data center facilities. This partnership is projected to generate around $10 billion in revenue.
The company's shares have seen a notable increase, surging 42% year-to-date, driven by the escalating demand for high-density data centers fueled by the AI boom. This bond sale follows previous financing, including up to $1 billion secured from Morgan Stanley.
Core Scientific CEO Adam Sullivan stated that the capital raised will be deployed to accelerate project timelines. The firm has also indicated a willingness to sell its remaining Bitcoin holdings to support this strategic shift. Previously, Core Scientific held less than 1,000 Bitcoin, after selling a substantial amount earlier this year.
While Bitcoin mining has historically been its primary revenue source, Core Scientific is now positioning itself as a leader in digital infrastructure and high-density colocation. The company is one of several Bitcoin mining firms increasingly prioritizing AI development.