WhiteFiber priced its convertible note offering at a 25% premium to the stock’s last closing price, but the offer was upsized to $270 million from the previously announced $250 million.
- WhiteFiber expects net proceeds of approximately $259.8 million, or $298.5 million if buyers fully exercise their additional purchase option.
- WhiteFiber plans to use the funds for new data centers, power agreements, GPU servers, and potential acquisitions and partnerships.
- WhiteFiber recently announced plans to acquire two industrial properties in North Carolina for data centers.
Shares of WhiteFiber (WYFI) crashed 22% in pre-market trading after the AI infrastructure company announced details surrounding its upsized $270 million convertible note offering as it prepares to expand its data center capacity.
If the pre-market levels hold through to the close of the session, WYFI shares would clock their biggest ever single-day slump.
25% Premium Over Last Close
The initial conversion price is about $33.84 per share, representing a 25% premium to the stock’s closing price on August 18. The company increased the offering from the initially planned $250 million.
Buyers also have the option to purchase an additional $40 million. The transaction is expected to close on August 21.
The notes will carry a 5% annual interest rate and mature in September 2032. They can be converted into cash, WhiteFiber shares, or a combination of both, the company said.
WhiteFiber expects net proceeds of approximately $259.8 million, or $298.5 million if buyers fully exercise their additional purchase option.
Data Center Expansion In Focus
WhiteFiber plans to use the funds for new data centers, power agreements, GPU servers, and potential acquisitions and partnerships. However, the company said it will still require additional project financing, such as construction loans, to complete its plans.
The fundraising follows WhiteFiber’s announcement earlier this week that it plans to acquire two industrial properties in North Carolina for $60 million in cash. WhiteFiber intends to retrofit the properties into data center campuses known as NC-2 and NC-3.
The proposed NC-2 and NC-3 campuses are expected to provide at least 60 megawatts of initial utility capacity, with the potential to reach about 200 MW over time. WhiteFiber is targeting initial service from the sites in the third quarter of 2027, with the property purchase expected to close in the fourth quarter of 2026.
Retail Sees Opportunity To Load Up
Despite the pre-market slump, retail sentiment surrounding WYFI on Stocktwits turned ‘extremely bullish’ from ‘bullish’ over the past 24 hours, amid a near 500% increase in message volumes.
Chatter was generally positive, with users looking to buy the dip.
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The stock is up around 35% so far this year
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