Core Scientific Secures Up to $1 Billion From Morgan Stanley for Pivot From Bitcoin Mining to AI
Core Scientific is shifting its business focus from Bitcoin mining to high-density colocation and data center infrastructure, supported by up to $1 billion in financing from Morgan Stanley. An initial agreement provides Core with $500 million in borrowing capacity, with the potential for an additional $500 million. This funding is intended to expand facilities and increase power for data centers. The company aims to exit Bitcoin mining entirely within three years to serve technology companies related to the AI boom. Core operates seven U.S. sites, actively converting at least one away from Bitcoin mining. To finance the transition, Core is liquidating most of its Bitcoin holdings, selling 1,900 Bitcoin for $175 million last month and retaining fewer than 1,000 coins. Despite the shift, most revenue still comes from Bitcoin mining, with $41 million in fourth-quarter sales versus $31 million from colocation. Core’s stock has risen 61% over the past year. Analysts maintain a positive outlook, setting a $28 price target and expressing confidence in the company’s strategic transition.
