Core Scientific Raises $3.3 Billion for AI Pivot

Core Scientific, a leading provider of digital infrastructure, announced plans Tuesday to raise $3.3 billion through the sale of senior secured notes due in 2031, marking a significant step in its transition from Bitcoin mining to artificial intelligence-focused data centers.

The company, based in Austin, Texas, will use the proceeds to fund the construction and expansion of high-performance computing facilities across several states, including Georgia, Texas, North Carolina, and Oklahoma. A portion of the funds will also refinance existing short-term debt, such as borrowings under a 364-day credit facility, and build financial reserves to support ongoing projects. The notes, classified as speculative-grade debt and backed by the company's assets, provide investors with priority claims in the event of a default. This structure allows Core Scientific to secure capital without issuing new shares, avoiding dilution for existing shareholders.

The financing builds on a recent $1 billion credit agreement with Morgan Stanley secured in March, which bolsters the company's ability to accelerate development timelines. Core Scientific is currently constructing six data centers under a...