Core Scientific to sell $3.3B junk bonds to fund AI centers
Core Scientific plans to offer $3.3 billion of speculative-grade bonds to fund six AI data centers under a 12-year CoreWeave contract and accelerate its exit from Bitcoin mining.
Core Scientific, based in Austin, announced it will offer $3.3 billion of speculative-grade notes due 2031 to finance construction of six high-density AI data centers under a 12-year agreement with CoreWeave. The company said a portion of the proceeds would be used to refinance existing debt and did not provide an interest rate or a timetable for the offering.
The firm has secured up to $1 billion in financing from Morgan Stanley to support the transition. Company officials expect the new capital to speed delivery of services and project work at the new facilities.
Core Scientific has estimated the six data centers could generate about $10 billion in revenue over the life of the CoreWeave agreement. The company frames the facilities as high-density colocation for computing workloads tied to artificial intelligence.
Executives plan to continue monetizing Bitcoin holdings to fund the shift. CFO Jim Nygaard estimated the company now holds fewer than 1,000 Bitcoin after selling roughly 1,900 BTC for about $175 million in January. Core Scientific reported 2,537 Bitcoin on its balance sheet at the end of 2025; at recent prices near $75,800 per coin, that position would be worth about $192 million.
Bitcoin mining remains a material revenue source. In the fourth quarter, the company recorded $41.1 million in revenue from mining for its own account and $31.3 million from colocation services. The company’s fleet produced 13,762 Bitcoin in the prior year, a volume that would be worth roughly $1 billion at current prices. After emerging from Chapter 11 in 2024, Core Scientific described itself as one of North America’s largest Bitcoin miners.
Investors responded to the AI-focused plan: shares rose about 4.5% to $20.77 and are up roughly 42% year-to-date. Core Scientific is one of several publicly traded Bitcoin miners repositioning toward AI and data-center services; peers that have announced similar shifts include Hut 8, TeraWulf, Riot Platforms, Marathon Digital Holdings and Bitfarms.
“We will deploy capital to accelerate service timelines and related project work,” CEO Adam Sullivan said.
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