Core Scientific Secures $500 Million Morgan Stanley Loan Facility to Fund AI Infrastructure Transition

Core Scientific has secured a $500 million 364-day loan facility from Morgan Stanley, with an accordion feature allowing expansion to $1 billion, as the Bitcoin mining firm accelerates its strategic pivot toward artificial intelligence and high-density colocation services.

The financing will fund real property acquisition, pre-development costs, energy contracts, and equipment purchases necessary to convert existing mining facilities across Texas, Georgia, and North Carolina into infrastructure capable of supporting compute-intensive AI workloads, following the company’s announcement that it expects to monetize “substantially all” of its Bitcoin holdings in 2026.

Loan Facility Terms and Structure

Core Scientific announced the completion of an initial $500 million closing of a 364-day loan facility from Morgan Stanley on March 5, 2026. The agreement includes an accordion feature that permits the company to increase total commitments by an additional $500 million, bringing potential total capacity to $1 billion.

Borrowings under the facility carry an interest rate of the Secured Overnight Financing Rate plus 250 basis points. The short-term structure provides Core Scientific with flexible capital access while executing its infrastructure transformation strategy.

Core Scientific intends to draw on the facility to fund the acquisition of real property, pre-development costs, and procurement of additional energy contracts. Proceeds are also earmarked for equipment purchases necessary to convert its existing mining fleet into infrastructure capable of supporting compute-intensive workloads.

Strategic Transition from Bitcoin Mining to AI Infrastructure

Corporate Repositioning

Core Scientific has been systematically repositioning its business away from Bitcoin mining and toward high-density colocation services for AI customers. In its annual report filed earlier this week, the company stated it expects to monetize “substantially all” of its Bitcoin reserves in 2026 to fund this transition.

CEO Adam Sullivan stated that Bitcoin mining is now “essentially in runoff,” with operations maintained primarily to satisfy minimum power commitments as legacy sites convert to AI-focused colocation. The company’s north star involves transitioning away from Bitcoin mining completely over the next three years, utilizing every available megawatt to service technology firms’ growing infrastructure demands amid the AI boom.

Facility Conversion Plans

Core Scientific currently operates seven facilities in the United States, including locations in Texas, Georgia, and North Carolina. One Texas facility is actively being transitioned from Bitcoin mining to high-density colocation, serving as a template for broader infrastructure conversion.

The Morgan Stanley financing strengthens liquidity and enhances financial flexibility as the company executes its development and go-to-market strategy. Sullivan emphasized that deploying capital to expedite project ready-for-service timelines makes Core Scientific a more compelling infrastructure provider for customers.

Bitcoin Holdings and Monetization

Treasury Position

As of December 31, 2025, Core Scientific held 2,537 Bitcoin with a carrying fair value of $222 million, representing a significant increase from 256 BTC at the end of 2024.

During January 2026, the company sold over 1,900 Bitcoin for approximately $175 million, according to its fourth-quarter earnings call. Following these sales, the company holds approximately 630 Bitcoin remaining in its corporate treasury.

Funding the Transition

The combination of Bitcoin monetization and the Morgan Stanley loan facility provides multiple capital sources for Core Scientific’s infrastructure transformation. The company expects to monetize substantially all remaining Bitcoin holdings during 2026 to support the pivot toward AI workloads.

Financial Performance and Market Position

Core Scientific continues to generate revenue from both Bitcoin mining and colocation services. The mining segment generated $41 million in fourth-quarter 2025 sales, compared to $31 million for colocation, indicating that mining remains the larger revenue contributor during the transition period.

Compass Point analysts reaffirmed a “Buy” rating with a $28 per share price target following the financing announcement, expressing confidence in Core Scientific’s ability to execute and fill leasable sites with investment-grade customers.

Core Scientific’s stock traded at $15.50 following the announcement, down approximately 2 percent. Shares have rallied 61 percent over the past year as the company positioned itself among a growing list of Bitcoin mining firms identifying revenue opportunities beyond digital asset mining.

Industry Context

The financing reflects growing willingness among traditional financial institutions to support Bitcoin mining companies transitioning toward AI infrastructure. Morgan Stanley’s provision of a short-term safety net enables Core Scientific to lean more aggressively into expansion while maintaining operational flexibility.

Core Scientific joins a broader industry trend of mining firms pivoting toward AI and high-performance computing, leveraging existing power infrastructure and facility footprints to capture growing demand for compute-intensive applications.

FAQ: Core Scientific Morgan Stanley Financing

Q: What are the terms of Core Scientific’s loan facility from Morgan Stanley?

A: Core Scientific secured a $500 million 364-day loan facility with an accordion feature allowing expansion to $1 billion. Borrowings carry an interest rate of SOFR plus 250 basis points. Proceeds will fund real property acquisition, pre-development costs, energy contracts, and equipment for AI infrastructure conversion.

Q: How much Bitcoin does Core Scientific currently hold and what are its plans for these holdings?

A: Following January sales of approximately 1,900 BTC for $175 million, Core Scientific holds roughly 630 Bitcoin remaining. The company expects to monetize “substantially all” of its Bitcoin reserves in 2026 to fund its transition toward AI and high-density colocation services.

Q: Why is Core Scientific pivoting away from Bitcoin mining?

A: Core Scientific is transitioning its business toward AI infrastructure to capitalize on growing demand for compute-intensive workloads. CEO Adam Sullivan stated that Bitcoin mining is now “essentially in runoff,” with operations maintained primarily to satisfy minimum power commitments as legacy sites convert to AI-focused colocation.

Q: What is Core Scientific’s current revenue mix between mining and colocation?

A: In the fourth quarter of 2025, Core Scientific’s mining segment generated $41 million in revenue compared to $31 million for colocation services. Mining remains the larger revenue contributor during the transition period, though the company expects this balance to shift as infrastructure conversion progresses.