Core Scientific Targets $3.3 Billion Debt Offering to Accelerate AI Infrastructure Pivot

Core Scientific (CORZ) is preparing a $3.3 billion junk bond issuance to finance its strategic shift toward artificial intelligence data center operations. The company, which previously focused on Bitcoin mining, is leveraging its existing power contracts and facility footprints to attract hyperscale AI clients. This pivot comes as the profitability of Bitcoin mining has been squeezed by the April 2024 halving and a decline in BTC prices from over $125,000 to approximately $75,800. By repurposing its infrastructure for AI workloads, Core Scientific aims to secure more stable, high-margin revenue streams. The company is currently developing six data centers dedicated to AI, which are leased to CoreWeave under a 12-year contract. This agreement is projected to generate roughly $10 billion in revenue. To further this transition, Core Scientific sold $175 million in Bitcoin last month and currently holds fewer than 1,000 BTC. The bond sale is part of a wider trend in the high-yield market, where AI infrastructure borrowers have raised $17.9 billion this year. Other firms, such as Edged Compute, are similarly seeking billions to fund facilities for CoreWeave and Alibaba units. Core Scientific intends to use the proceeds to repay existing debt, fund reserves, and cover potential construction cost overruns. Investors have reacted positively to the strategy, with CORZ shares rising nearly 42% this year despite a double-digit decline in the price of Bitcoin.