Core Scientific is seeking to raise $3.3 billion in new debt to expand its data center capacity beyond Bitcoin mining. This financing structure allows miners to raise funds without diluting existing shareholder equity, a practice favored by many companies in the industry as equity markets remain sensitive to the volatility associated with cryptocurrencies.
The proceeds from this financing are expected to support ongoing data center construction and refinance recent debt. Part of the funds will be used to repay borrowings under a 364-day credit facility, effectively extending the repayment timeline while the company continues to expand its infrastructure in key U.S. states, including Georgia, Texas, North Carolina, and Oklahoma.
As profits from Bitcoin mining tighten following the latest halving cycle and rising operational costs, more crypto miners are relying on debt and partnerships, shifting their focus from traditional Bitcoin mining to artificial intelligence (AI) infrastructure.
The pace of collaborative expansions is also accelerating across the industry. Soluna Holdings announced on Tuesday that it has expanded its agreement with Bitcoin mining infrastructure provider Blockware, adding 3.3 megawatts of capacity at its shared facility in West Texas. This site primarily hosts third-party mining operations, and the latest agreement marks the fourth expansion between Blockware and Soluna, demonstrating a stable demand for outsourced infrastructure as companies scale without taking on full development risks.