Core Scientific plans $3.3B debt raise to fund AI data center push

The miner plans to refinance short-term debt and scale its US infrastructure as the broader industry pivots toward AI and high-performance computing.

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.

Related: Aluminum giant Alcoa to sell dormant smelter to Bitcoin miner NYDIG: Report

Source: CoinTelegraph