Core Scientific launches $3.3 billion junk-bond sale to fund AI infrastructure expansion

Core Scientific Adds to AI Junk-Bond Wave With $3.3 Billion Deal

Core Scientific Inc. is looking to raise $3.3 billionBloomberg Terminal from a junk-bond sale, joining a wave of high-yield issuers tapping debt markets to fund artificial intelligence infrastructure. The firm is developing six data center facilities that have been fully contracted with CoreWeave Inc. under a 12-year contract that could generate about $10 billion in revenue, a person with direct knowledge of the matter said. Morgan Stanley and JPMorgan Chase & Co. are running the debt offering, the person added, asking not to be identified as discussions are private. The bond sale is expected to price later this week. The rapid expansion of AI has strained supplies of data-center space, graphics-processing chips and power -- pushing companies to tap every corner of the US debt market to finance new capacity. Companies tied to the buildout have raised $17.9 billion from riskier bonds so far this year, according to data compiled by Bloomberg. Click here to see Bloomberg's AI Infrastructure Debt Monitor Core Scientific's offering comes days after a record junk-bond transaction just days ago involving Google-backed data centers and an add-on offering by CoreWeave that together raised $6.7 billion. Edged Compute LLC on Monday kicked off a $1.3 billion bond sale to fund AI infrastructure to be leased to CoreWeave and a subsidiary of Alibaba Group Holding Ltd. Investors have so far been eager to buy junk bonds tied to projects backed by investment-grade hyperscalers such as Alphabet Inc.'s Google and Amazon.com Inc., while demanding a juicer premium from offerings lacking such backstop. Last week's Google-linked offering had Bloomberg Terminala 6.25% yield, versus 9.19%Bloomberg Terminal for speculative-rated CoreWeave's latest offering. Core Scientific Finance I LLC -- as the unit selling the bonds is formally known -- will use the proceeds from the $3.3 billion offering to fund a debt service reserve account and make a distribution to its parent company, which intends to repay in full its outstanding delayed draw term loan, the company said in a statementBloomberg Terminal. Core Scientific, which is publicly traded and has a market value of $6.27 billion, added it will fund its subsidiary as necessary to ensure the timely completion of data center projects in Georgia, Texas, North Carolina and Oklahoma "in the event that the proceeds of the notes and other available funds are insufficient to do so."

Core Scientific Reveals $3.3 Billion Junk-Bond Sale to Pivot Further from Bitcoin Mining to AI - Decrypt

The company said last month that it is willing to sell the entirety of its Bitcoin holdings in order to fund its ongoing pivot. Core Scientific, a Bitcoin miner turned data center operator, said on Tuesday that it plans to offer $3.3 billion worth of speculative-grade debt to fund its massive pivot into AI infrastructure. In an announcement, the company valued around $6.55 billion said that it would use a portion of proceeds from the raise to refinance debt. The firm did not say what the notes due in 2031 would pay in terms of an interest, nor when they would be offered to investors. Under a 12-year agreement with cloud-computing firm CoreWeave, which could generate roughly $10 billion in revenue, Core Scientific is currently building six data center facilities, Bloomberg reported on Tuesday, citing a person with direct knowledge of the matter. Core Scientific shares rose 4.5% on Tuesday to $20.77, according to Yahoo Finance. As the AI boom has continued to drive demand for high-density data centers across the U.S., the company's shares have surged 42% year-to-date. The junk-bond sale would capitalize the firm with additional funding after it secured up to $1 billion in financing from Morgan Stanley. Core Scientific CEO Adam Sullivan said the firm would be deploying capital to accelerate service timelines associated with its projects. Days before, the Austin, Texas-based firm indicated that it would continue offloading Bitcoin in order to finance its pivot. At the time, CFO Jim Nygaard estimated that the company currently owns less than 1,000 Bitcoin after selling 1,900 Bitcoin for $175 million in January. Billing itself now as a leader in digital infrastructure and high-density colocation, the company concluded 2025 with 2,537 Bitcoin on its balance sheet that would be worth $192 million today, with Bitcoin recently changing hands around $75,800, according CoinGecko. Although the company is distancing itself from the leading digital asset, Bitcoin mining has remained the firm's biggest money-maker. In the fourth quarter, Core Scientific earned $41.1 million from mining Bitcoin for itself compared to $31.3 million from colocation. The firm is among several that have historically mined Bitcoin but are now prioritizing AI, including Hut 8, TeraWulf, Riot Platforms, MARA Holdings, and Bitfarms. When Core Scientific emerged from Chapter 11 bankruptcy in 2024, the company described itself as one of the largest Bitcoin miners in North America. And the previous year, its fleet of miners produced 13,762 Bitcoin, a sum valued at roughly $1 billion today.

Core Scientific Plans $3.3B Debt Raise to Expand AI Data Centers

Core Scientific is seeking to raise $3.3 billion in debt to support its expanding data center operations across the United States, as crypto miners increasingly pivot toward high-performance computing and artificial intelligence workloads amid tighter conditions in the mining sector. The financing will come through senior secured notes due in 2031, the company disclosed Tuesday. The notes will be backed by Core Scientific's assets, giving investors priority claims in the event of default. Unlike an equity raise, the offering allows the company to access capital without diluting existing shareholders. Proceeds from the offering are expected to fund ongoing data center development and refinance existing short-term debt. In particular, Core Scientific plans to repay borrowings under its 364-day credit facility, effectively extending its debt maturities as it scales infrastructure. The company has identified expansion projects in Georgia, Texas, North Carolina and Oklahoma. The proposed raise follows a separate $1 billion credit agreement with Morgan Stanley announced in March, underscoring Core Scientific's push to secure long-term financing for its data center buildout. Core Scientific is among several crypto miners that have turned to leverage to expand beyond traditional bitcoin mining, particularly into high-performance computing and AI-focused data center services. Peers, including MARA Holdings, Riot Platforms and Hut 8 have pursued similar strategies, investing in infrastructure and partnerships to diversify revenue streams. Meanwhile, IREN has pursued one of the most aggressive expansion strategies in the sector, spending roughly $800 million on data centers and related infrastructure in its most recent quarter. Related: CoreWeave shows how crypto-era infrastructure quietly became AI's backbone The crypto mining industry is increasingly turning to partnerships to finance and expand its footprint in AI and data center workloads. On Tuesday, Soluna Holdings, a publicly traded developer of renewable-powered data centers, announced an expanded partnership with Bitcoin mining infrastructure provider Blockware. The deal is expected to add 3.3 megawatts of capacity at Soluna's West Texas colocation facility, which primarily hosts third-party mining operations. The agreement marks Blockware's fourth expansion with Soluna. As Cointelegraph recently reported, Soluna is also expanding into AI workloads, including a $53 million investment in a wind farm to support those operations as mining revenues come under pressure.