Core Scientific has secured up to $1 billion in financing from Morgan Stanley to accelerate its pivot from Bitcoin mining to high-density AI infrastructure and colocation services.

This financing follows the company’s Q4 earnings, which included a $175 million sale of Bitcoin as part of its shift toward AI-focused data center offerings.

The loan supports repurposing existing data centers for AI compute, with plans to monetize most of its Bitcoin holdings in 2026 to fund the pivot.

The facility bears interest at SOFR plus 2.5%, and includes an accordion option that could expand commitments by up to $500 million.

Proceeds will be used for general corporate purposes tied to expanding data center assets, including equipment purchases, real estate acquisitions, and securing additional power agreements.

Shares were down roughly 1% in pre-market trading following the financing news.

Analysts at Compass Point reiterated a Buy rating with a $28 target, expressing confidence in Core’s ability to attract investment-grade tenants for its leasable sites.

CEO Adam Sullivan said the loan strengthens liquidity and flexibility to speed project readiness and competitiveness in AI infrastructure provisioning.

Post-restructuring, Core has been repurposing data center assets for AI/HPC workloads, including a multi-year agreement to supply HPC capacity for CoreWeave starting mid-2024.

The company has sold over 1,900 BTC in January 2026, leaving around 630 BTC as of the fourth quarter earnings call.

The financing will accelerate development of data center infrastructure and energy arrangements, reinforcing Core’s shift toward AI-related workloads.

Core Scientific operates seven U.S. facilities, with several sites in Texas transitioning away from Bitcoin mining to serve AI and high-density computing needs.