JPMorgan and Morgan Stanley Expand Core Scientific Loan

TLDR

• JPMorgan committed $500 million to expand Core Scientific’s total credit facility to $1 billion.
• Morgan Stanley earlier pledged $500 million under the same 364-day loan agreement.
• Borrowings under the facility carry an interest rate of SOFR plus 2.50%.
• Core Scientific plans to use the funds for property acquisition and energy contracts.
• The company will convert existing mining sites into high-density computing centers.

Core Scientific secured an extra $500 million credit facility from JPMorgan Chase Bank on Monday. The commitment increases its 364-day loan facility to $1 billion after Morgan Stanley pledged $500 million. The company will use the funds to expand data center capacity and support infrastructure upgrades.

JPMorgan and Morgan Stanley back $1B facility

JPMorgan committed $500 million to Core Scientific under a 364-day credit facility. Earlier, Morgan Stanley pledged $500 million to the same facility. Together, the banks expanded the total borrowing capacity to $1 billion. Borrowings carry an interest rate of SOFR plus 250 basis points.

Core Scientific CEO Adam Sullivan confirmed the commitments in a statement.

The company stated that it will use the facility for property acquisitions and pre-development expenses. It will also secure new energy contracts to support expanded operations. In addition, it will purchase equipment to convert existing sites for compute-intensive workloads.

Core Scientific shifts from bitcoin mining to AI infrastructure

Core Scientific continues to reduce its reliance on bitcoin mining revenue. The company aims to expand high-density colocation services for AI customers. It operates facilities across Texas, Georgia, and North Carolina. It plans to convert these locations into advanced compute centers.

In its recent annual report, the company outlined plans to liquidate most Bitcoin reserves in 2026. It will use those proceeds to fund its infrastructure transition. The strategy supports its goal to serve AI and advanced compute clients. The company seeks to align capital allocation with that objective.

The surge in artificial intelligence development has increased power demand and computing resources. Core Scientific stated that it intends to meet this demand through expanded capacity. It will invest in infrastructure capable of supporting GPU hosting and other compute-heavy workloads. The company confirmed that the new facility strengthens its ability to execute these plans.

JPMorgan analysts stated in 2024 that Bitcoin mining facilities can serve as AI GPU hosting centers. They also indicated that the window to capture demand may be limited. Core Scientific continues to reposition assets to capture available opportunities. The company maintains its focus on executing development plans supported by the $1 billion credit facility.

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