Shares of Core Scientific, Inc. (CORZ) plummeted 7.44% during intraday trading on Friday, following the company's disclosure of a significant new debt arrangement.

The sharp decline came after Core Scientific announced it entered into a credit agreement with Morgan Stanley Senior Funding for a $500 million senior secured loan facility. According to an SEC filing, the term loan facility matures just 364 days after the closing date, making it a short-term financing arrangement that will need to be repaid within approximately one year.

Investors appeared concerned about the company's financial strategy, particularly the short maturity period of the substantial loan and the implications of taking on additional secured debt. The market reaction suggests skepticism about the company's liquidity position and its ability to manage the repayment of such a large amount within the relatively brief timeframe.