Core Scientific, Inc. (NASDAQ: CORZ) completed the initial closing of a $500 million, 364‑day loan facility with Morgan Stanley. The facility carries an interest rate of SOFR plus 250 basis points and includes an accordion feature that allows the company to increase total commitments by an additional $500 million, potentially raising the total available capital to $1 billion.
The financing is intended to fund the company’s conversion of its former Bitcoin‑mining infrastructure into high‑density AI and high‑performance computing (HPC) colocation sites, a key element of its strategic pivot toward higher‑margin data‑center services. The loan will support capital‑intensive upgrades, power‑capacity expansion, and the acceleration of ready‑for‑service timelines across multiple sites.
Core Scientific’s most recent quarterly results showed total revenue of $79.8 million for Q4 2025, a 15.97% decline year‑over‑year, with colocation revenue rising to $31.3 million while digital‑asset mining revenue fell. Gross profit for the quarter reached $20.8 million, up from $4.8 million a year earlier, but the company reported a trailing‑twelve‑month net loss of $288.6 million. The company also sold more than 1,900 BTC for approximately $175 million in January 2026 to fund the transition.
CEO Adam Sullivan said, “This strengthens our liquidity and enhances our financial flexibility as we execute our development and go‑to‑market strategy. With this additional financing capacity, we can operate decisively by deploying capital to expedite project ready‑for‑service timelines, making us an even more compelling infrastructure provider for customers.” He added, “We’re now past the halfway point on our existing builds and scaling our colocation platform into a 1.5 gigawatt pipeline of leasable capacity. With a multi‑geography footprint and proven execution, we are accelerating RFS timelines across multiple sites to position the company for durable growth.”
The company faces several headwinds, including heavy capital needs, power‑cost and availability risks, Bitcoin price volatility, regulatory uncertainty, and a concentration risk tied to its sole colocation customer, CoreWeave. Despite these challenges, the firm’s focus on AI workloads and its partnership with CoreWeave—projected to generate $3.5 billion in revenue over a 12‑year term—provides a clear path to higher‑margin operations.
Core Scientific operates ten U.S. data centers with approximately 1.4 GW of gross utility power capacity and 920 MW of leasable customer power capacity. As of December 31 2025, the company had energized about 350 MW of capacity, with roughly 200 MW currently billing. The new loan facility will help the company expand this footprint and accelerate the conversion of its mining sites into AI‑ready colocation spaces.
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