Core Scientific launches $3.3B debt offering for AI growth

Core Scientific will issue $3.3B in secured notes to repay debt and expand AI data centers, with six new facilities leased to CoreWeave and expected to generate $10B in revenue.

Core Scientific has unveiled plans to raise $3.3 billion through a private offering of senior secured notes due in 2031. The proceeds will be used to repay outstanding loans, fund a debt service reserve, and support the expansion of its data center operations. The notes, issued via a subsidiary, will be fully guaranteed by five subsidiaries and secured by first-priority liens on nearly all assets of the issuer and guarantors. This move signals a strategic shift for Core Scientific, transitioning from bitcoin mining to artificial intelligence-focused data center infrastructure. The company plans to construct six new facilities in Georgia, Texas, North Carolina, and Oklahoma. All centers are fully leased to CoreWeave under a 12-year agreement, projected to generate approximately $10 billion in revenue. The offering reflects a broader trend of high-yield debt financing in the AI infrastructure sector and comes after Core Scientific’s emergence from bankruptcy in early 2024.