Core Scientific plans $3.3 billion debt offering, with proceeds to help repay credit facility loans

Bitcoin miner Core Scientific (CORZ) disclosed plans for its wholly-owned subsidiary, Core Scientific Finance, to raise $3.3 billion through a private debt offering, with a portion of the proceeds earmarked to repay borrowings under a recently expanded credit line.

The 2031 senior secured notes will be fully guaranteed by five of Core Scientific’s subsidiaries and secured by first-priority liens on substantially all subsidiary assets, the company said in a statement on Tuesday. The final terms and completion of the deal remain subject to market conditions, and there is no assurance as to when or if the offering will be finalized.

According to the statement, the issuer intends to use net proceeds to fund a debt service reserve account, with part of that distributed to Core Scientific. The parent company then plans to apply a portion of that distribution to repay in full its outstanding delayed draw term loans under a previously announced 364-day credit facility, including accrued interest and related fees.

The offering coincides with a series of data center developments in Georgia, Texas, North Carolina, and Oklahoma. Core Scientific said it will provide a completion guarantee covering those projects, committing to fund the issuer if necessary to ensure construction is completed should proceeds or other available funds fall short.

The development comes as Core Scientific accelerates a strategic shift away from bitcoin mining toward high-density colocation services for artificial intelligence customers. 

On March 23, JPMorgan Chase Bank committed an additional $500 million to Core Scientific’s 364-day credit facility, bringing the total to $1 billion after Morgan Stanley’s earlier $500 million commitment. 

The bitcoin miner said at the time it would use the credit line to acquire real property, cover pre-development costs, procure additional energy contracts, and purchase equipment to convert existing mining facilities for compute-intensive workloads.

The company also previously said it expects to sell “substantially all” of its bitcoin holdings in 2026 to support this expansion. 

Core Scientific shares traded at $20.38 on Tuesday, up 2.57%.