Core Scientific, a major player in digital infrastructure, has secured a significant financial boost, announcing an initial $500 million loan facility from Morgan Stanley, with the potential to expand to $1 billion. This strategic move signals the company’s decisive pivot from its traditional digital asset mining operations towards the burgeoning artificial intelligence (AI) sector.
Core Scientific is actively repositioning its business model to capitalize on the growing demand for AI infrastructure. The company plans to convert most of its existing data center facilities to support AI-related workloads and next-generation colocation services. While currently deriving the majority of its revenue from digital asset mining, Core Scientific anticipates a substantial increase in revenue from high-density colocation services.
The 364-day loan facility provided by Morgan Stanley includes an accordion feature, allowing for an additional $500 million in commitments under customary terms. Borrowings under the facility will bear interest at a rate of Secured Overnight Financing Rate (SOFR) plus 250 basis points. This financing is crucial for the company’s development and go-to-market strategy, enabling decisive capital deployment to expedite project timelines and enhance its position as an infrastructure provider.
Proceeds from the facility are earmarked for general corporate purposes related to data center asset development. This includes the purchase of equipment, pre-development costs, real property acquisition, and securing additional energy for its data centers. The company also intends to monetize a significant portion of its Bitcoin reserves in 2026 to further fund this transition.
Core Scientific’s strategic shift is evident in its recent financial reporting, which shows a notable increase in colocation revenue while self-mining and hosted mining revenues have declined. CEO Adam Sullivan has indicated that Bitcoin mining operations are now “essentially in runoff,” with a focus on converting legacy sites to AI-focused colocation. This pivot is supported by positive analyst ratings and a growing market for AI infrastructure.