Bitcoin Miner Core Scientific Secures up to $1B Morgan Stanley Funding for AI Pivot

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On Thursday, Bitcoin mining company Core Scientific Inc. (Nasdaq: CORZ) announced that it had secured up to $1 billion from Morgan Stanley (NYSE: MS) to accelerate the shift of its Bitcoin mining facilities (all 10 sites) into AI data centers.

Per terms of the agreement, Core Scientific will receive an initial $500 million, 364-day loan. An accordion feature allows it to increase this amount to up to $500 million.

The firm will use the funding to purchase equipment, land, and cover the extra energy costs associated with high-density colocation for its AI clients.

Core Scientific stimulus loan to transition to AI

The recent development comes after Core Scientific reported missing Q4, 2025 revenue estimates by over $44 million. This happened as Bitcoin dropped from its 2025 all-time high of $126K to a 2025 low of $71K, with miners’ production costs at roughly $93K. At press time, Bitcoin was yet to escape this miner capitulation zone, trading at $71,086.

Source: MacroMicro

To counter these negatives, Core Scientific recently dumped nearly all (2,537) of its Bitcoin holdings to fund AI infrastructure. The company is also in a $10 billion partnership with the AI cloud platform CoreWeave, where it provides the AI facilities necessary for CoreWeave’s graphical processing units (GPUs).

Pragmatic approach towards profitability

Core Scientific is one among many large-scale Bitcoin miners that have partially or fully transitioned into AI data centers. Others include Iris Energy, Cipher Mining, TeraWulf, and Hut 8 Corp.

The move is supported by their pre-existing electric grids and pre-allocated power capacity, in addition to physical infrastructure such as land, warehousing, and cooling facilities. 

Hosting AI will now generate up to 25X more revenue per kilowatt-hour than Bitcoin mining. This income will also be tied to the dollar, making it more stable than that tied to Bitcoin.

Core Scientific stock is yet to reflect this development, trading at $15.67 (-1.07% in 24h) at press time.

Source: MarketWatch