Overview
- Core Scientific, which disclosed Tuesday it plans to sell $3.3 billion in senior secured notes due 2031, said the bonds will be backed by company assets that give investors priority claims if the firm defaults.
- The company said proceeds will support construction of AI-focused sites and repay borrowings under its 364-day credit facility, with projects identified in Georgia, Texas, North Carolina, and Oklahoma.
- Six facilities now under development are tied to a 12-year capacity agreement with CoreWeave that Bloomberg reported could generate roughly $10 billion in revenue, a figure the company has not confirmed.
- The planned bond sale follows a reported $1 billion credit agreement arranged by Morgan Stanley in March and recent bitcoin sales of about $175 million, moves that raise cash without issuing new shares.
- AI infrastructure borrowers have raised about $17.9 billion in junk bonds this year, and Core Scientific shares rose roughly 6% on the announcement as investors bet on its shift away from low-margin bitcoin mining.