Business
Core Scientific Secures Strategic Financing with Morgan Stanley for Up To $1 Billion
AUSTIN, Texas--(BUSINESS WIRE)-- Core Scientific, Inc. (Nasdaq: CORZ) (“Core Scientific” or the “Company”), a leader in digital infrastructure for
About this update from Core Scientific, Inc.
[{"type":"text","content":" AUSTIN, Texas--(BUSINESS WIRE)--\nCore Scientific, Inc. (Nasdaq: CORZ) (“Core Scientific” or the “Company”), a leader in digital infrastructure for high-density colocation, today announced that it completed the initial closing of a $500 million 364-day loan facility (the “Facility”) provided by Morgan Stanley. The Facility includes an accordion feature that provides the potential to increase total commitments by up to an additional $500 million, for total commitments of up to $1.0 billion, subject to customary terms and conditions. Borrowings under the Facility bear interest at a rate of Secured Overnight Financing Rate (“SOFR”) plus 250 basis points (2.50%).\n\n\n“This strengthens our liquidity and enhances our financial flexibility as we execute our development and go-to-market strategy,” said Adam Sullivan, Chief Executive Officer of Core Scientific. “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.”\n\n\nThe Company expects to use proceeds from borrowings under the Facility, as and when drawn, for general corporate purposes related to the development of data center assets, including without limitation purchase equipment costs, pre-development costs, real property acquisition and costs related to the acquisition of, and entrance into, agreements for the procurement of additional energy for data centers.\n\n\nAbout Core Scientific, Inc.\n\n\nCore Scientific, Inc. (“Core Scientific” or the “Company”) is a leader in designing, building and operating large scale, purpose-built data centers for high-density colocation services. We operate facilities for high-density colocation services and are a premier provider of digital infrastructure, software solutions and services to our third-party customers. We employ our own fleet of computers (“miners”) to earn digital assets for our own account and are in the process of converting most of our existing facilities to support artificial intelligence-related workloads and next generation colocation services. We currently derive the majority of our revenue from earning digital assets for our own account but expect to rapidly increase revenue derived from high-density colocation (“HDC”). We intend to repurpose our remaining facilitie...