Core Scientific Secures $1 Billion From Morgan Stanley to Accelerate Pivot From Bitcoin Mining to AI

Core Scientific Secures Major Financing to Fund Infrastructure Expansion

Core Scientific has closed a $500 million credit line with Morgan Stanley, with the option to expand the financing to as much as $1 billion, marking a significant milestone in the company's pivot from Bitcoin mining to AI infrastructure 1

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. The 364-day facility carries interest at the Secured Overnight Financing Rate plus 2.5% and includes an accordion feature that allows total commitments to increase by another $500 million . According to the Austin, Texas-based firm, the financing may be used for general corporate purposes tied to building and expanding high-density data center infrastructure, including equipment purchases, real estate acquisition, and securing additional power agreements .

Strategic Shift to AI Gains Momentum With Wall Street Support

CEO Adam Sullivan has made clear that Core Scientific's north star involves transitioning away from Bitcoin mining completely over the next three years, using every megawatt available to service AI technology firms' growing efforts to compete amid the AI boom 1

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. "With this additional financing capacity, we can operate decisively by deploying capital to expedite project ready-for-service timelines, making us an even more compelling infrastructure provider for customers," Sullivan said in a statement 1

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. The development shows how banks like Morgan Stanley are willing to provide companies like Core with a short-term safety net that could also enable them to lean more aggressively into their overall expansion 1

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Company Monetizes Bitcoin Holdings to Bankroll Transition

Core Scientific indicated earlier this week that it would likely "monetize substantially all" of its Bitcoin holdings to bankroll its transition, after cashing in 1,900 Bitcoin for $175 million last month, leaving under 1,000 Bitcoin remaining in its corporate coffers 1

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. The company currently operates seven facilities in the U.S., including one in Texas that the company is actively transitioning away from Bitcoin mining to high-density colocation 1

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. Despite the strategic pivot, the company still generates most of its revenue by mining Bitcoin for itself, with that segment generating $41 million in fourth-quarter sales against $31 million for colocation 1

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From Chapter 11 Bankruptcy to High-Performance Computing Leader

Core Scientific filed for Chapter 11 bankruptcy protection in December 2022 after falling Bitcoin prices, rising energy costs, and losses tied to crypto lender Celsius strained its finances . In January 2024, it emerged from bankruptcy and relisted its shares on Nasdaq after completing a court-approved restructuring . Following the restructuring, Core Scientific began repurposing parts of its data center infrastructure to support AI and high-performance computing workloads alongside its Bitcoin mining operations . That shift accelerated in June 2024, when the company signed a 12-year agreement with AI cloud provider CoreWeave to supply data center capacity for HPC .

Market Response and Analyst Outlook Signal Confidence

Core's stock price edged down 2% to $15.50 on Friday, though shares have rallied 61% over the past year, as the company has situated itself amid a growing list of firms involved in Bitcoin mining that increasingly see revenue opportunities elsewhere 1

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. In a note published on Tuesday, analysts at investment bank Compass Point reaffirmed a "Buy" rating alongside a $28 per share price target, underscoring their "confidence in Core Scientific's ability to execute and fill leasable sites with investment grade customers" 1

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. The company operates large-scale data centers in several US states, including Texas, Georgia, and North Carolina, hosting both Bitcoin mining equipment and other computing workloads . Several other Bitcoin mining companies have also begun repurposing their infrastructure to support AI and HPC workloads in recent months, with Hive Digital Technologies expanding into HPC and TeraWulf signing 10-year colocation agreements with AI infrastructure company Fluidstack valued at $3.7 billion .