Core Scientific obtains loan facility of up to $1 billion from Morgan Stanley

The firm has successfully finalized a $500 million loan facility featuring an accordion option that enables the total commitment to increase to $1 billion.

Key points:

• Core Scientific has finalized the initial closing of a $500 million, 364-day loan facility with Morgan Stanley.
• This facility incorporates an accordion feature that may elevate total financing commitments to $1 billion.

Core Scientific (CORZ), a digital infrastructure provider based in Texas, has obtained up to $1 billion in strategic financing from Morgan Stanley to advance its data center infrastructure.

The company revealed the initial closing of a $500 million 364-day loan facility, which includes an accordion option that could increase total commitments by an additional $500 million, contingent upon standard conditions. Borrowings under this facility will be subject to interest at the Secured Overnight Financing Rate (SOFR), plus 2.50%.

As stated by CEO Adam Sullivan, the influx of capital will enable the company to expedite projects nearing service readiness, thereby better addressing the increasing customer demand.

Core Scientific intends to allocate the funds for general corporate purposes related to data center development. This encompasses equipment acquisitions, early-stage project expenditures, land purchases, and the establishment of additional energy supply agreements necessary to operate future facilities.

This announcement follows closely behind Core Scientific’s Q4 earnings report, in which the company disclosed the sale of $175 million worth of bitcoin as it shifts focus towards AI infrastructure.

Shares of Core Scientific experienced a decline of approximately 1% in pre-market trading on Thursday.