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Core Scientific secures $1 billion loan from Morgan Stanley amid AI pivot
Yahoo Finance· 2026-03-05 15:54
Group 1 - Core Scientific secured an initial $500 million loan from Morgan Stanley, with an option to increase the total to $1 billion, at an interest rate of Secured Overnight Financing Rate plus 2.50% [1] - The company plans to use the capital for general corporate purposes, focusing on data center asset development and energy procurement [1] - In the fourth quarter, Core Scientific reported $79.8 million in revenue, with a total of $319 million for the entirety of 2025, reflecting a shift away from bitcoin mining to AI/HPC data centers [2] Group 2 - AI hosting revenue increased to $31.3 million in the quarter as the company continues to deliver AI capacity to CoreWeave [2] - Shareholders rejected a $9 billion all-stock buyout offer from CoreWeave in October, with opposition from Institutional Shareholder Services and Two Seas Capital, citing concerns over unfavorable economics and undervaluation of Core Scientific's assets [3] - Following stock volatility from the failed buyout, Citadel Securities disclosed a 5.5% passive stake of 17.2 million shares, focusing on market-making activities [4]