Core Scientific, a major Bitcoin mining company, has secured a combined $1 billion credit facility from JPMorgan Chase and Morgan Stanley to fund its strategic pivot towards becoming a high-density data center operator for artificial intelligence (AI) and advanced compute workloads. The company announced on Monday that JPMorgan Chase Bank provided an additional $500 million credit facility, matching a previous $500 million commitment from Morgan Stanley.
The 364-day loan facility carries an interest rate of the Secured Overnight Financing Rate (SOFR) plus 250 basis points. Core Scientific CEO Adam Sullivan stated, "We are proud to have commitments from Morgan Stanley and J.P. Morgan under this Facility. With $1 billion of total financing capacity now available, we are well positioned to execute on our development and go-to-market strategy, deploying capital to accelerate infrastructure delivery and meet the strong demand environment."
The capital is earmarked for acquiring real property, covering pre-development costs, procuring additional energy contracts, and purchasing equipment necessary to convert its existing fleet of mining facilities. These facilities are located across Texas, Georgia, and North Carolina. The company's strategy is a direct response to the surging demand for both power and compute capacity driven by AI development.
This financing accelerates Core Scientific's planned transition away from a reliance on Bitcoin mining revenue. The company recently stated in an annual report that it intends to liquidate most of its Bitcoin (BTC) reserves in 2026 to fund this shift. The move reflects a broader industry trend where Bitcoin mining operators are exploring opportunities to repurpose their energy-intensive infrastructure for more stable, contract-based AI hosting services.
Analysts, including those from JPMorgan, have noted since 2024 that Bitcoin mining facilities have a potential, but possibly time-limited, opportunity to serve as AI GPU hosting centers. The short-term nature of the 364-day facility underscores an execution-focused phase for Core Scientific, placing pressure on timelines for development, conversion, and revenue generation as it competes with purpose-built AI data centers.
