Core Scientific Secures $600M Credit Facilities to Accelerate AI Data Center Transformation

Core Scientific (NASDAQ: CORZ), the former bitcoin mining specialist now pivoting heavily toward artificial-intelligence infrastructure, has finalized $600 million in senior secured credit facilities. The move bolsters its liquidity and credit support as the company aggressively converts its power portfolio into AI-ready data centers, a strategic shift that has become central to its growth narrative.

The financing package, detailed in an Aug. 27 regulatory filing, consists of a $100 million revolving credit line and a $500 million letter-of-credit facility. Both instruments closed on Aug. 25, with no amounts drawn at the time of signing. The structure means only one-sixth of the headline figure is immediately available as revolving borrowing capacity; the larger letter-of-credit portion is designed primarily to support obligations tied to utility agreements and other project-related commitments, rather than provide upfront cash, the company said in its announcement.

The agreement is expected to unlock approximately $300 million in restricted cash that had previously been tied up in utility-related obligations, a significant liquidity boost for a company in the midst of a capital-intensive transformation. Borrowing under the facilities is contingent on Core Scientific maintaining a market capitalization of at least $3 billion and holding $150 million in quarterly liquidity, reflecting lender confidence in the company's financial trajectory.

JPMorgan Chase Bank NA serves as administrative and collateral agent for the facilities, which carry a three-year term with an option for Core Scientific to elect a fourth-year maturity. Revolver borrowings are priced at adjusted Term SOFR plus 1.75 percentage points, or an alternate base rate plus 0.75 percentage point. Based on the one-month CME Term SOFR rate of 3.68814% on Aug. 25, the applicable two-business-day lookback date, a one-month SOFR borrowing would currently carry an effective annual interest rate of approximately 5.44%. Three- and six-month borrowings would cost roughly 5.52% and 5.63%, respectively, before other charges.

The facilities are secured by a first-priority lien on the company's and its subsidiaries' assets, a standard but notable provision given the scale of Core Scientific's ongoing infrastructure commitments. The company has been rapidly expanding its AI-focused data center footprint, including the recent closing of the Polaris deal to expand its Oklahoma AI campus, and has positioned itself as a key player in the growing intersection of energy and compute.

Industry observers note that Core Scientific's financing strategy reflects a broader trend among former cryptocurrency miners repurposing their power assets for AI workloads. The ability to secure credit at competitive rates, while unlocking restricted cash, provides a template for other companies navigating similar transitions. As AI data center demand continues to surge, access to flexible capital and strong banking relationships are becoming critical differentiators in a highly competitive infrastructure market.