JPMorgan Leads $1B Financing After Bankruptcy Exit
Core Scientific (CORZ) secured a $500 million credit facility from JPMorgan Chase on March 24, 2026, anchoring a total $1 billion financing capacity for the firm. The deal marks a significant vote of confidence from a top-tier bank just over two years after the Bitcoin miner emerged from Chapter 11 bankruptcy in January 2024. During its restructuring, the company shed approximately $400 million in debt.
The new credit line, carrying an interest rate of SOFR plus 2.5%, provides substantial capital for expansion. CEO Adam Sullivan stated the funds position the company to execute its growth strategy, accelerate infrastructure delivery, and meet strong market demand. The financing represents a powerful recovery, enabling the company to fund equipment purchases, property acquisition, and energy procurement for its data centers.
AI Pivot Drives 268% Colocation Revenue Growth
The financing validates Core Scientific’s strategic pivot away from low-margin Bitcoin self-mining and toward high-demand colocation services for artificial intelligence and machine learning workloads. The company is leveraging its extensive power capacity and physical footprint to capture more profitable opportunities in the AI sector. This shift is already yielding significant results.
In the fourth quarter of 2025, Core Scientific's colocation revenue surged 268% year-over-year to over $31 million. This growth occurred even as total quarterly revenue declined 16% to $80 million, a direct result of the intentional wind-down of its self-mining operations. The strategic change dramatically improved profitability, with gross profit rising to nearly $21 million from just $4.8 million in the prior-year period. This institutional backing for a digital asset infrastructure company mirrors broader market conviction, seen in actions like MicroStrategy's recent $44.1 billion capital raise plan to expand its own Bitcoin holdings.
