Austin-based Bitcoin miner Core Scientific secured up to $1 billion in strategic financing from Morgan Stanley to accelerate its pivot from cryptocurrency mining to high-density data center infrastructure. The agreement includes an initial $500 million credit facility, with the potential for an additional $500 million, to fund expansion and help transition its existing facilities. The company also plans to use its remaining Bitcoin holdings to finance this strategic shift, having recently sold 1,900 Bitcoin for $175 million.
Core Scientific has secured a major financing agreement with Morgan Stanley, providing up to $1 billion to fund its strategic transition. The company can initially borrow up to $500 million under the 364-day agreement, as stated in its press release.
The funds will support building data centers and securing more power for its high-density colocation services. CEO Adam Sullivan said, “With this additional financing capacity, we can operate decisively by deploying capital to expedite project ready-for-service timelines.”
Sullivan has outlined a plan to transition completely away from Bitcoin mining within three years. The company intends to use its infrastructure to service technology firms competing in the AI sector.
Currently, Core Scientific operates seven U.S. facilities, one of which is actively being converted from mining to colocation. Despite the shift, the company still generated most of its Q4 revenue, $41 million, from mining Bitcoin for itself.
The company is funding its pivot by liquidating its Bitcoin treasury. It recently indicated it would likely “monetize substantially all” of its holdings after selling 1,900 Bitcoin last month.
This leaves the company with fewer than 1,000 Bitcoin remaining. Its stock price was $15.50 on Friday, according to Yahoo Finance, though shares are up 61% over the past year.
