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Core Scientific seeks $3.3 billion bond sale to further AI data center pivot

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Core Scientific seeks $3.3 billion bond sale to further AI data center pivot

Core Scientific (CORZ) is preparing to raise $3.3 billion through a junk bond sale as it continues its transition toward artificial intelligence-focused data center operations.

Demand for AI services has pushed data centers, power supply and advanced chips to their limits. To keep up, firms are tapping riskier parts of the debt market for funds to keep developing their operations. Core Scientific, once a bitcoin miner, sold $175 million in bitcoin last month to further its AI pivot.

Borrowers linked to AI infrastructure have raised $17.9 billion in junk bonds so far this year, Bloomberg reported. CORZ itself is building six data centers that will support AI workloads, with the capacity leased to CoreWeave under a 12-year agreement that could bring in around $10 billion in revenue, the report adds, citing sources familiar with the deal.

Core Scientific’s move follows a string of large deals. Recent offerings tied to Google-backed data centers and CoreWeave raised a combined $6.7 billion. Another firm, Edged Compute, is marketing $1.3 billion in bonds to fund facilities leased to CoreWeave and an Alibaba unit.

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Core Scientific said it will use proceeds to repay existing debt and fund reserves. It also plans to support construction across several states if costs exceed available funds, signaling how capital-intensive the AI buildout has become.

The company still holds “under 1,000 bitcoin,” according to CFO Jim Nygaard.

Big AI pivot

Core Scientific was founded in 2017 and grew into one of North America’s largest bitcoin miners before filing for Chapter 11 in December 2022, squeezed by high power costs and a weak bitcoin price. It emerged from reorganization in January 2024 and was relisted on Nasdaq under the ticker CORZ.

The pivot from bitcoin mining to AI hosting is all about the margins.

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The April 2024 halving cut block rewards from 6.25 BTC to 3.125, and by late 2025, the average cash cost to mine one bitcoin rose while the price of BTC itself had been on a downturn, from over $125,000 to around $75,800. With rising power costs and competition, most miners became unprofitable and had to find alternative ways to continue earning revenue.

That’s when AI came to the rescue. Miners’ most valuable assets, already-built data centers and power contracts, meanwhile, gained a new use case: hosting computers that power AI.

Their power contracts, grid connections and cooling-ready sites are attracting hyperscalers, including Microsoft, Google parent Alphabet and others, in the ongoing AI race. Core Scientific was one of the first miners to pivot on a large scale, which caught investors’ attention and sparked the AI push.

Core Scientific’s shares were up about 6% on Tuesday and are up nearly 42% this year, while bitcoin fell 11%.

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Crypto World

One-Third of EU Investors May Switch Banks Due to Crypto Interest: Survey

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One-Third of EU Investors May Switch Banks Due to Crypto Interest: Survey

Cryptocurrency offerings are starting to influence how European investors are choosing their bank providers, but regulatory uncertainty continues to hinder mainstream adoption, according to a new survey.

A Börse Stuttgart Digital survey released Tuesday found that 35% of European investors would consider switching banks if another institution offered better cryptocurrency investment options, suggesting crypto is starting to influence how some customers choose financial providers.

Nearly one in five respondents said they expect their main bank to offer crypto access within the next three years, according to the survey, which covered about 6,000 investors in Germany, Italy, Spain and France. The findings suggest crypto is moving closer to the mainstream banking relationship, at least among investors already open to digital assets.

Still, regulations and a lack of education remain the biggest hurdles to adoption, with 76% seeing crypto assets as insufficiently regulated, while over 60% feel poorly informed about digital assets.

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MiCA increased trust in digital assets for nearly half of European investors

European Union regulation appears to be helping on that front. The EU’s Markets in Crypto-Assets Regulation (MiCA) went into full effect for crypto asset service providers on Dec. 30, 2024.

Nearly half of the surveyed investors said that the MiCA framework increased their trust in digital assets, making them “safer and more attractive.”

“Trust and clear regulation are essential for the next phase of crypto adoption in Europe. With MiCAR bringing transparency and legal certainty, investors gain the clarity they expect,” said Matthias Voelkel, the CEO of Börse Stuttgart Group.

The results land as traditional financial institutions across Europe keep inching deeper into crypto. Börse Stuttgart Digital said in January 2025 that it had become the first German provider of crypto asset services to receive an EU-wide MiCA license through its custody subsidiary, positioning itself as a regulated infrastructure provider for banks, brokers and asset managers.

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Related: Deutsche Börse invests $200 million in Kraken parent Payward

Spain leads European crypto adoption

Among the surveyed countries, Spain showed the highest crypto adoption rate with nearly 28% of investors already owning digital assets. Germany was second with 25%, Italy followed with 24% and France with 23%.

Of the respondents, 25% said they had already invested in crypto, and 36% said they are likely to invest again within the next five years, showing “sustained interest despite market volatility,” according to the report.

Top countries within the wider European region by total value received, July 2024 – June 2025. Source: Chainalysis

According to a Chainalysis report published in October 2025, Russia had the largest crypto market in Europe with $376 billion of value received between July 2024 and June 2025, trailed by the United Kingdom with $273 billion and Germany with $219 billion.

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