Core Scientific seeks $3.3B private notes to fund AI data centers

Core Scientific disclosed that its wholly owned unit, Core Scientific Finance, plans to raise $3.3 billion through a private offering of 2031 senior secured notes. The company intends to use proceeds to repay borrowings under an expanded $1 billion credit line and to fund conversions of former bitcoin mining sites into high-density colocation facilities for artificial intelligence workloads.

The 2031 notes will be fully guaranteed by five Core Scientific subsidiaries and secured by first-priority liens on substantially all subsidiary assets. Final terms and timing will depend on market conditions, and the company cautioned there is no assurance the offering will be completed.

Net proceeds are planned to fund a debt service reserve account. Part of that reserve would be distributed to Core Scientific, which intends to apply a portion to repay delayed draw term loans under a previously announced 364-day credit facility, including accrued interest and related fees.

On March 23, JPMorgan Chase Bank committed an additional $500 million to the 364-day facility, bringing it to $1 billion after Morgan Stanley’s earlier $500 million commitment. Core Scientific plans to use the credit line to acquire real property, cover pre-development costs, secure energy contracts and purchase equipment needed to convert mining operations for compute-intensive workloads.

Construction and development are under way in Georgia, Texas, North Carolina and Oklahoma. Core Scientific will provide a completion guarantee for those projects, committing to fund the issuer if offering proceeds or other available funds fall short so construction can be finished.

The company is shifting from primarily mining bitcoin toward offering colocation and high-density compute capacity for AI customers and has indicated it expects to sell substantially all of its bitcoin holdings in 2026 to support the expansion. The offering disclosure notes completion is conditional on market acceptance and other factors, leaving the timing uncertain.