Core Scientific secures $500M financing from JPMorgan to enhance data center expansion

Core Scientific, a Nasdaq-listed company that operates data centers for Bitcoin mining and AI workloads, announced it has secured a total of $1 billion in strategic financing, including $500 million from JPMorgan.

In a Monday statement, Core Scientific CEO Adam Sullivan said with the backing of Morgan Stanley and JPMorgan, the firm is well equipped to execute its go-to-market plans and expand its data center infrastructure.

The funds will support equipment, property, and energy investments in high-density colocation data centers. The facility carries interest at SOFR plus 2.5%.

From bankruptcy to billion-dollar credit line

Core Scientific emerged from Chapter 11 bankruptcy in January 2024, after restructuring approximately $400 million in debt obligations.

At the time of its filing, the company was one of North America’s largest Bitcoin miners, but rising network difficulty and post-halving revenue compression forced a reassessment of its business model.

Rather than continuing to expand an increasingly commoditized mining operation, Core Scientific shifted toward high-density colocation services for AI and machine learning workloads, using the power capacity and physical footprint it had already assembled.

The company reported strong colocation growth in Q4 2025, even as overall revenue declined.

Colocation revenue jumped 268% year over year to over $31 million in the quarter, driven by the expansion of colocation operations.

In contrast, total quarterly revenue fell 16% to approximately $80 million from around $95 million a year earlier, a decline caused by the intentional wind-down of lower-margin self-mining operations.

Gross profit rose to nearly $21 million from $4.8 million in the prior-year period. Net income reached $216 million, reflecting a GAAP non-cash fair value gain of $330 million, compared to a net loss of $291 million in Q4 2024.

Core Scientific ended the quarter with liquidity of about $533 million, providing a solid runway for continued growth.