WhiteFiber Stock Tumbles 25% After Announcing $250 Million Convertible Notes for AI Infrastructure Growth

WhiteFiber Expands AI Infrastructure, Cloud Contracts Exceed $540 Million - Whitefiber (NASDAQ:WYFI)

The company reported a loss of $0.39 per share, narrower than the $0.41 analyst estimate. Also, revenue reached $28.84 million, topping the $19.34 million consensus. Earnings Snapshot Revenue rose 54% year over year, driven by a 43% increase in Cloud Services revenue to $23.8 million and a 173% jump in Colocation revenue to $4.7 million. Cloud Services revenue included approximately $12.3 million related to a previously disclosed customer termination. Gross profit excluding D&A was $17.1 million, with a 59.4% margin, in the quarter. Operating loss stood at $9.3 million versus a loss of $9.2 million a year earlier. Adjusted EBITDA rose 69% year over year to $5.5 million in the quarter. Colocation remaining performance obligations stood at approximately $932.9 million as of June 30, 2026, primarily tied to the NC-1 agreement. Cash and restricted cash totaled $60.4 million at the end of the quarter. Contracts New multi-year cloud agreements signed since the previous earnings call exceed $540 million in aggregate contract value, with the portfolio expected to generate more than $200 million in annualized revenue once fully deployed. This includes a $165 million Base 10 agreement for 1,392 NVIDIA B300 GPUs in Ontario, a $108 million Prime Intellect agreement for 576 NVIDIA Vera Rubin 200 GPUs in Canada, a Paris deployment worth more than $160 million and an $87.5 million Iceland agreement for 576 NVIDIA B300 GPUs. WhiteFiber is expanding its capital-light managed-services model and has secured exclusive access to 100 MW of liquid-cooled colocation capacity from 2027 through Cranboo. Its networking technology achieved 111.2 Tbps of bandwidth and sub-millisecond latency across 83 km, with commercial launch targeted for September 2026. Key Updates WhiteFiber invested approximately $83.2 million in project-level equipment and bridge financing to support infrastructure growth. NC1 has entered customer deployment, with 20 MW available for installation and testing. Initial billing has begun, with full run-rate billing for the contracted 40 MW expected by the end of August following the resolution of switchgear and commissioning issues. NC1's 10-year contract represents approximately $865 million in revenue. WhiteFiber expects an additional 45 MW from Duke Energy and is evaluating another 200 MW, potentially expanding the site to about 300 MW. MTL2 targets roughly 5 MW by year-end 2026, with colocation and integrated cloud-service options under review. The company is seeking secured financing for NC1 to recycle capital into future projects. Its next opportunity could deliver 60 MW in 2027 and scale beyond 250 MW. Management continues to pursue a "retrofit-first" strategy focused on reliable power, long-term contracts, investment-grade customers, rapid deployment and financeable projects. WYFI Price Action: Whitefiber shares were up 16.60% to $28.24 at the time of publication on Wednesday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Why is WhiteFiber stock plunging today? By Investing.com

Investing.com -- WhiteFiber Inc stock plunged 24.3% in after-hours trading to reach $20.50 after the company announced a proposed private placement of $250 million in convertible senior notes due 2032, with initial purchasers holding an option to acquire up to an additional $37.5 million within 13 days of issuance. The offering, structured as general senior unsecured obligations convertible at the company's discretion into cash or ordinary shares, immediately raised dilution alarms among investors, particularly given that the stock had already been trading near the lower half of its 52-week range of $10.51-$46.87. The notes announcement was further complicated by its stated purpose: proceeds are earmarked in part to facilitate exchange transactions involving the company's existing 4.500% convertible notes due 2031 -- effectively a debt refinancing layered on top of ongoing expansion spending. Just the day before, WhiteFiber had disclosed a $60 million all-cash agreement to acquire two industrial properties in Yadkin County, North Carolina, intended to become data center campuses with a combined initial gross utility capacity of at least 60 MW and long-term potential of approximately 200 MW. Together, the two announcements painted a picture of a company aggressively scaling its infrastructure while simultaneously restructuring its debt load. The broader market offered no shelter, with the Nasdaq Composite declining 1.7% during the regular session, weighing on growth-oriented technology and AI infrastructure names across the board. WhiteFiber, which operates through cloud services and colocation segments targeting AI and high-performance computing workloads, is particularly sensitive to risk-off sentiment given its small-cap status and ongoing net losses. The combination of a large dilutive capital raise, a sizable cash acquisition announced in quick succession, a weak Nasdaq session, and lingering concerns about the company's path to profitability converged to produce one of the stock's sharpest single-session declines, pulling shares well below their opening price of $28.83 and erasing gains accumulated over recent weeks. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

WhiteFiber stock tumbles 25% on convertible notes offering By Investing.com

Investing.com -- WhiteFiber Inc (NASDAQ:WYFI) shares fell 25% in after-hours trading Tuesday following the company's announcement of a $250 million convertible senior notes offering. The AI infrastructure and high-performance computing solutions provider said it intends to offer the Convertible Senior Notes due 2032 in a private placement to qualified institutional buyers. The company also plans to grant initial purchasers an option to purchase up to an additional $37.5 million principal amount of notes. The notes will be general, senior unsecured obligations of WhiteFiber and will accrue interest payable semiannually. Upon conversion, the company will pay or deliver cash, ordinary shares, or a combination of both, at its election. WhiteFiber said it intends to use a portion of the net proceeds to pay cash consideration for concurrent note exchange transactions. The remainder will be used primarily for data center expansion, including to partially fund the lease or purchase of additional properties for new data centers, construction of those facilities, energy service agreements, and related equipment purchases including GPU servers for its cloud business. The company also plans to use proceeds for potential acquisitions, partnerships and joint ventures, as well as working capital and general corporate purposes. If initial purchasers exercise their option to purchase additional notes, WhiteFiber expects to use those proceeds for similar purposes. WhiteFiber noted it will require additional project financing, such as construction loans, to fully accomplish the specified initiatives. The company also may elect to raise additional capital opportunistically. The interest rate, initial conversion rate, repurchase or redemption rights and other terms of the notes will be determined at the time of pricing of the offering. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

WhiteFiber Prices Convertible Senior Notes Offering

WhiteFiber, Inc. is a provider of artificial intelligence (AI) infrastructure solutions. The Company owns high-performance computing (HPC) data centers and provides cloud-based HPC graphics processing units (GPU) services for customers, such as AI application and machine learning (ML) developers. Its tier-three data centers provide hosting and colocation services. Its cloud services support generative AI workstreams, especially training and inference. Its segments include cloud services and colocation services. The cloud services segment provides HPC services to support generative AI workstreams. The colocation services segment provides customers with physical space, power and cooling within the data center facility. In addition to providing data center hosting capacity to its customers, its business model integrates WhiteFiber data center infrastructure and WhiteFiber cloud services to provide scalable HPC solutions for enterprises, and research institutions, among others.

WhiteFiber Proposes $250 Million Convertible Senior Notes in Private Placement; Shares Fall After-Hours

WhiteFiber, Inc. is a provider of artificial intelligence (AI) infrastructure solutions. The Company owns high-performance computing (HPC) data centers and provides cloud-based HPC graphics processing units (GPU) services for customers, such as AI application and machine learning (ML) developers. Its tier-three data centers provide hosting and colocation services. Its cloud services support generative AI workstreams, especially training and inference. Its segments include cloud services and colocation services. The cloud services segment provides HPC services to support generative AI workstreams. The colocation services segment provides customers with physical space, power and cooling within the data center facility. In addition to providing data center hosting capacity to its customers, its business model integrates WhiteFiber data center infrastructure and WhiteFiber cloud services to provide scalable HPC solutions for enterprises, and research institutions, among others.

Earnings Flash (WYFI) WhiteFiber, Inc. Reports Q2 Revenue $28.8M, vs. FactSet Est of $18.6M

WhiteFiber, Inc. is a provider of artificial intelligence (AI) infrastructure solutions. The Company owns high-performance computing (HPC) data centers and provides cloud-based HPC graphics processing units (GPU) services for customers, such as AI application and machine learning (ML) developers. Its tier-three data centers provide hosting and colocation services. Its cloud services support generative AI workstreams, especially training and inference. Its segments include cloud services and colocation services. The cloud services segment provides HPC services to support generative AI workstreams. The colocation services segment provides customers with physical space, power and cooling within the data center facility. In addition to providing data center hosting capacity to its customers, its business model integrates WhiteFiber data center infrastructure and WhiteFiber cloud services to provide scalable HPC solutions for enterprises, and research institutions, among others.