Core Scientific (CORZ), the Texas-based digital infrastructure provider, has secured up to $1 billion in strategic financing from Morgan Stanley to support the development of its data center infrastructure.
The company announced the initial closing of a $500 million, 364-day loan facility, with an accordion option that could expand the total commitments by another $500 million, subject to standard terms. Loans under the facility will bear interest at the secured overnight financing rate (SOFR), plus 2.50%.
According to CEO Adam Sullivan, the additional capital will allow the company to move faster on projects that are approaching service availability, helping it better meet growing customer demand.
Core Scientific plans to use the funds for general corporate purposes tied to the development of the data center. This includes equipment purchases, early stage project costs, land acquisitions and securing additional power supply agreements needed to power future facilities.
This comes just days after Core Scientific’s fourth-quarter earnings, during which the company revealed it sold $175 million worth of bitcoin as it pivots toward artificial intelligence infrastructure.
Shares of Core Scientific fell about 1% in premarket trading Thursday.
