Core Scientific Secures $1B Loan From Morgan Stanley

TLDR

• Core Scientific secured an initial $500 million loan facility from Morgan Stanley with potential expansion to $1 billion.
• The 364-day agreement carries an interest rate set at SOFR plus 2.50%.
• The company will use the funds to support data center development and AI infrastructure projects.
• Core Scientific plans to finance equipment purchases, land acquisitions, and energy supply agreements.
• The company sold about $175 million worth of bitcoin in January to support its strategic shift.

Core Scientific secured up to $1 billion in strategic financing from Morgan Stanley to expand its data center infrastructure. The company closed an initial $500 million 364-day loan facility with an option to double the total commitment. The funding will support its transition toward artificial intelligence infrastructure and related development projects.

Core Scientific Closes $500 Million Initial Facility

Core Scientific announced the closing of a $500 million 364-day loan facility with Morgan Stanley. The agreement includes an accordion feature that may increase total commitments to $1 billion. Borrowings under the facility will carry interest at SOFR plus 2.50%.

The company stated it will use the proceeds for general corporate purposes tied to data center growth. It plans to fund equipment purchases and pre-development costs with the capital. It also intends to acquire land and secure energy supply agreements for future facilities.

CEO Adam Sullivan said the financing strengthens the company’s liquidity and flexibility. He stated, “With this additional financing capacity, we can operate decisively and expedite project-ready-for-service timelines.” He added that the capital will help meet growing customer demand for compute infrastructure.

Core Scientific Advances Shift Toward AI Infrastructure

Core Scientific continues to reposition its operations toward high-density colocation services for artificial intelligence workloads. The company said it will use the loan to convert its existing fleet into infrastructure that supports compute-intensive tasks. Its facilities operate in Texas, Georgia, and North Carolina.

Sullivan stated, “This strengthens our liquidity and enhances our financial flexibility as we execute our development and go-to-market strategy.” He said the company aims to become a compelling infrastructure provider for AI customers. The company confirmed it will deploy capital to accelerate projects nearing service readiness.

Earlier this week, Core Scientific released its fourth-quarter earnings results. The company disclosed that it sold about $175 million worth of bitcoin in January. It executed those sales as it shifted capital allocation toward artificial intelligence infrastructure.

As of Dec. 31, 2025, the company held 2,537 BTC with a fair value of $222 million. This figure increased from 256 BTC at the end of 2024. However, the January sales reduced its holdings to roughly 630 BTC.

Sullivan said on the earnings call that bitcoin mining now operates “essentially in runoff.” He stated the company maintains mining operations mainly to meet minimum power commitments. The company expects to monetize all remaining Bitcoin reserves substantially in 2026.

Shares of Core Scientific fell about 1% in pre-market trading on Thursday. The company confirmed the facility gives it access to fresh capital for infrastructure conversion. It will continue focusing on real property acquisition and energy contracts to support its expansion plans.

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