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Morgan Stanley provides $500 million loan facility to Core Scientific with option to extend to $1 billion

Morgan Stanley provides $500 million loan facility to Core Scientific with option to extend to $1 billion

The BlockThe Block2026/03/05 13:39
By:The Block

Core Scientific said Thursday it secured a $500 million financing facility from Morgan Stanley, giving the bitcoin miner access to fresh capital as it pivots its infrastructure toward artificial intelligence workloads.

The 364-day loan agreement includes an accordion feature that allows the company to increase total commitments by an additional $500 million, bringing the potential total capacity to $1 billion, according to a statement. Borrowings under the facility carry an interest rate of SOFR plus 250 basis points. 

Core Scientific stated it intends to draw on the facility to fund the acquisition of real property, pre-development costs, and the procurement of additional energy contracts. The proceeds are also earmarked for equipment purchases necessary to convert its existing fleet, which spans facilities in states including Texas, Georgia, and North Carolina, into infrastructure capable of supporting compute-intensive workloads.

“This strengthens our liquidity and enhances our financial flexibility as we execute our development and go-to-market strategy,” Core Scientific CEO Adam Sullivan said in the statement. “With this additional financing capacity, we can operate decisively by deploying capital to expedite project ready-for-service timelines, making us an even more compelling infrastructure provider for customers.”

The company has been repositioning its business away from bitcoin mining and toward high-density colocation services for AI customers. In its annual report filed earlier this week, Core Scientific said it expects to monetize “substantially all” of its bitcoin reserves in 2026 to fund the transition. 

As of Dec. 31, 2025, the miner held 2,537 BTC with a carrying fair value of $222 million, up from 256 BTC at the end of 2024.

Notably, Core Scientific has already sold over 1,900 BTC in January for approximately $175 million, according to its fourth-quarter earnings call, leaving the company with roughly 630 BTC remaining. 

CEO Adam Sullivan said on the call that bitcoin mining is now “essentially in runoff,” with operations maintained primarily to satisfy minimum power commitments as legacy sites convert to AI-focused colocation.


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