Core Scientific has secured up to $1 billion in financing from Morgan Stanley, signaling a significant pivot away from Bitcoin mining. The company is focusing on building data centers to provide infrastructure for high-density colocation, catering to the growing demands of technology firms in the AI boom.
This financing agreement allows Core Scientific to borrow up to $500 million initially, with the potential for an additional $500 million. These funds will be used to expand its physical footprint and enhance power capabilities for its data centers. CEO Adam Sullivan stated that this capacity will enable the company to expedite project timelines and become a more compelling infrastructure provider.
The strategic shift aims to transition away from Bitcoin mining entirely over the next three years, dedicating all available power to service AI-focused technology companies. Core Scientific currently operates seven facilities across the U.S., with ongoing transitions in Texas.
While still generating most of its revenue from Bitcoin mining, the company has indicated plans to "monetize substantially all" of its Bitcoin holdings to finance this transition. Analysts at Compass Point maintain a "Buy" rating and a $28 price target, expressing confidence in Core Scientific's execution and ability to attract investment-grade customers for its leasable sites.