Core Scientific, a bitcoin mining and data centre startup, has reached a deal with Morgan Stanley that could provide up to $1 billion to support its growing infrastructure.
The deal starts with a $500 million loan facility, but if more money is required, the entire credit line might be increased to $1 billion. The company claims that the money would be utilised to assist the growth and development of its data centres.
Core Scientific owns large-scale facilities in several US states, including North Carolina, Georgia, and Texas. These locations accommodate high-density computing systems utilised for sophisticated computing activities, such as artificial intelligence, as well as Bitcoin mining equipment.
The interest rate on the 364-day credit facility is determined by adding 2.5% to the Secured Overnight Financing Rate. Additionally, if both parties agree to the expansion, the agreement’s “accordion feature” permits the loan amount to rise by an additional $500 million.
While Bitcoin mining continues to be the company’s primary source of income, Core Scientific is increasingly concentrating on high-performance computing services and artificial intelligence infrastructure.
The action is part of a larger trend in the cryptocurrency mining sector, where businesses are using their massive data centres to accommodate AI workloads.
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