Core Scientific Inc. has successfully sold $3.3 billion in a high-yield note offering, reflecting the growing trend of risky borrowing associated with AI infrastructure construction. Priced at a discounted rate of 99.25 cents on the dollar, the five-year bonds yield 7.933%, one of the highest for data-center-linked junk bond deals this year. This issuance comes amid a notable increase in junk bond offerings related to data centers, driven by the increasing demand for AI and high-performance computing resources, as companies repurpose their assets in the evolving market.

Bloomberg: Bloomberg L.P. is a global provider of financial data, news, analytics, and software services, including the Bloomberg Terminal used by professionals for market insights. It delivers coverage on business, technology, and economic trends worldwide. Bloomberg reported on Core Scientific’s bond offering, framing it as part of broader risky borrowing trends in AI infrastructure.
Core Scientific Inc.: Core Scientific Inc. designs, builds, and operates large-scale high-density data centers purpose-built for artificial intelligence and high-performance computing workloads. The company is pivoting from bitcoin mining operations to focus on AI infrastructure through long-term leases with hyperscalers like CoreWeave and facility expansions. In this news, Core Scientific raised funds via a high-yield note sale to finance AI data center construction projects.

Industry Pivot: Bitcoin mining firms are repurposing assets to support AI and high-performance computing infrastructure.
Bond Market Trend: Junk bond issuances linked to data centers have surged amid AI demand.
AI Data Center Financing: High-yield bonds are fueling expansions of data centers optimized for AI workloads.