Core Scientific, a bitcoin miner that emerged from bankruptcy in January 2024, announced a $3.3 billion junk bond offering to refinance debt and fund AI data center expansion. The company has pivoted from struggling bitcoin mining operations—selling $175 million in bitcoin in March 2026—to building six AI facilities leased to CoreWeave under a 12-year agreement expected to generate $10 billion in revenue. The move reflects broader industry trends as bitcoin mining profitability declined following the April 2024 halving and rising costs, while AI infrastructure demand has pushed data centers to capacity limits. Core Scientific joins a wave of AI-linked borrowers who have raised $17.9 billion in speculative-grade bonds in 2026, with shares up 42% year-to-date as investors bet on the AI hosting pivot.
Core Scientific's $3.3 Billion Debt Offering for AI Data Centers
- ▪Core Scientific is preparing to raise $3.3 billion through a junk bond sale
- ▪Core Scientific's 12-year agreement with CoreWeave is expected to generate approximately $10 billion in revenue
Broader Trend of AI Infrastructure Financing Through Junk Bonds
- ▪Borrowers linked to AI infrastructure have raised $17.9 billion in junk bonds so far in 2026
- ▪Recent offerings tied to Google-backed data centers and CoreWeave raised a combined $6.7 billion
- ▪Edged Compute is marketing $1.3 billion in bonds to fund facilities leased to CoreWeave and an Alibaba unit
Core Scientific's Pivot from Bitcoin Mining to AI Hosting
- ▪Core Scientific's shares are up nearly 42% in 2026 as of April 21, 2026
- ▪By late 2025, the average cash cost to mine one bitcoin rose while bitcoin price declined from over $125,000 to around $75,800
- ▪Core Scientific grew into one of North America's largest bitcoin miners before filing for Chapter 11 in December 2022
- ▪Core Scientific's shares were up about 6% on April 21, 2026
- ▪Core Scientific emerged from bankruptcy reorganization in January 2024
- ▪Core Scientific sold $175 million in bitcoin in March 2026 to further its AI pivot
- ▪Core Scientific filed for Chapter 11 bankruptcy in December 2022 due to high power costs and a weak bitcoin price
Perspective of Core Scientific
- ▪Core Scientific's 12-year CoreWeave lease agreement provides revenue stability that justifies the $3.3 billion debt offering
Perspective of Junk bond investors
- ▪The $17.9 billion raised in AI-linked junk bonds in 2026 reflects investor confidence in data center growth prospects
- ▪Core Scientific's $10 billion expected revenue from CoreWeave provides sufficient collateral for the $3.3 billion debt offering
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