Morgan Stanley Lends $1 Billion to Core Scientific Amid AI Push

Core Scientific has secured a $1 billion financing facility from Morgan Stanley to support its transition from Bitcoin mining to data center infrastructure. The company will use the proceeds to fund equipment purchases, land acquisitions, and energy supply agreements for future facilities. According to CEO Adam Sullivan, the capital will allow Core Scientific to accelerate projects that are approaching their service readiness dates.

The deal includes an accordion feature that allows total borrowings to reach $1 billion, subject to standard conditions. The facility carries interest at the Secured Overnight Financing Rate plus 2.50%. Morgan Stanley's financing gives Core Scientific a short-term capital runway without requiring it to tap equity markets immediately.

Core Scientific currently runs seven facilities across the United States and has already converted one Texas site from Bitcoin mining to high-density colocation. The company still relies on mining for most of its revenue, with that segment generating $41 million in fourth-quarter sales compared to $31 million from colocation services.