Core Scientific (CORZ), the Texas-based digital infrastructure provider, has secured up to $1 billion in strategic financing from Morgan Stanley to support the development of its data center infrastructure.
The company announced the initial closing of a $500 million 364-day loan facility, with an accordion option that could increase total commitments by an additional $500 million, subject to standard terms. Borrowings under the Facility will bear interest at the Secured Overnight Financing Rate (SOFR) plus 2.50%.
According to CEO Adam Sullivan, the additional capital will allow the company to move forward more quickly on projects close to commissioning, helping it better meet growing customer demand.
Core Scientific plans to use the funds for general corporate purposes related to data center development. This includes purchasing equipment, early-stage project costs, land acquisition and entering into additional energy supply agreements needed to power future facilities.
This comes just days after Core Scientific’s fourth-quarter results, in which the company revealed it sold $175 million worth of bitcoin as it pivots into AI infrastructure.
Shares of Core Scientific were down about 1% in pre-market trading Thursday.
