The agreement is structured in a way that could allow Core to borrow an additional $500 million, providing the company with funds that could also go toward increasing its physical footprint across additional facilities and securing more power for data centers.
“With this additional financing capacity, we can operate decisively by deploying capital to expedite project ready-for-service timelines, making us an even more compelling infrastructure provider for customers,” CEO Adam Sullivan said in a statement.
The development shows how banks like Morgan Stanley are willing to provide companies like Core with a short-term safety net—the financing was secured under a 364-day term—that could also enable them to lean more aggressively into their overall expansion.
Sullivan has said that Core’s north star involves transitioning away from Bitcoin mining completely over the next three years, using every megawatt available to service technology firms’ growing efforts to compete amid the AI boom.
The company currently operates seven facilities in the U.S., including one in Texas that the company is actively transitioning away from Bitcoin mining to high-density colocation.
The company still generates most of its revenue by mining Bitcoin for itself. That segment generated $41 million in the fourth-quarter sales against $31 million for colocation.
In a note published on Tuesday, analysts at investment bank Compass Point reaffirmed a “Buy” rating alongside a $28 per share price target. They underscored their “confidence in Core Scientific’s ability to execute and fill leasable sites with investment grade customers.”
