Core Scientific Secures $500M Credit Facility from Morgan Stanley for AI Data Center Expansion

Mining firm Core Scientific has secured a $500 million credit facility from investment bank Morgan Stanley. The capital will fund the construction of data centers designed to serve artificial intelligence workloads.

Deal Structure and Terms

According to the company's press release, the agreement includes a provision to expand the facility up to $1 billion, subject to standard conditions. The interest rate is set at SOFR plus 2.5% per annum.

Core Scientific intends to deploy the funds across several priorities:

• Equipment procurement for data centers;
• Pre-construction activities;
• Land acquisition;
• New power capacity connections.

CEO Adam Sullivan said the facility would strengthen the company's liquidity and enhance financial flexibility as it executes its growth strategy. He noted that the additional capital would enable faster commissioning of facilities, making Core Scientific a more attractive infrastructure partner for clients.

The company's total facility capacity across the United States currently exceeds 1,300 MW, per its official website.

Why This Matters

The deal between Core Scientific and Morgan Stanley underscores a powerful industry trend: former cryptocurrency miners are aggressively repositioning themselves as AI infrastructure providers. Mining facilities already possess the heavy-duty power connections and cooling systems that AI compute providers desperately need. Morgan Stanley's involvement signals strong institutional confidence in this strategic transformation.

From Bitcoin Mining to AI Infrastructure

In early March, Core Scientific disclosed the sale of its entire Bitcoin holdings — 2,537 BTC worth approximately $170 million at current prices. The move represents a definitive break from the company's mining-first business model.

The financials tell the same story. In Q4 2025, Core Scientific reported that cryptocurrency mining revenue dropped to $42.2 million. Meanwhile, revenue from compute infrastructure hosting services tripled year-over-year, jumping from $8.5 million in 2024 to $31.3 million.

Sullivan first announced plans to scale AI services back in 2024, calling it a more profitable line of business. That same year, Core Scientific signed a 12-year contract with CoreWeave to provide 200 MW of infrastructure for hosting Nvidia GPUs. The deal was expected to generate $3.5 billion in revenue over its full term.

Failed Acquisition and Industry-Wide Shift

In 2025, CoreWeave attempted to acquire Core Scientific for $9 billion. While the board of directors unanimously approved the transaction, major shareholder Two Seas Capital opposed it, arguing the price was too low.

The reorientation of mining capacity toward AI needs is playing out against a backdrop of declining mining profitability. In late February 2026, MARA Holdings reported a quarterly loss of $1.7 billion and announced a joint venture with Starwood Capital Group to build AI-focused data centers.

The pattern is unmistakable: power-hungry infrastructure that once secured the Bitcoin network is increasingly being redirected to serve the rapidly expanding demands of the artificial intelligence industry.