WhiteFiber Inc (NASDAQ: WYFI) shares fell 25% in after-hours trading on Tuesday after the company announced plans to issue $250 million in convertible senior notes due 2032. The offering, structured as a private placement to qualified institutional buyers, will accrue semiannual interest and allow conversion into cash, ordinary shares, or a combination at the company’s discretion.
The notes include an over-allotment option permitting initial purchasers to acquire an additional $37.5 million in principal. Terms such as the interest rate, initial conversion rate, and redemption rights will be set at pricing. WhiteFiber did not disclose the offering’s pricing or timing.
Proceeds will fund cash considerations for concurrent note exchanges, data center expansion, and potential acquisitions, partnerships, or joint ventures. The company also plans to use the capital for working needs and general corporate purposes. WhiteFiber noted it may seek additional project financing, including construction loans, to fully execute its initiatives and may raise opportunistic capital as needed.
WhiteFiber describes itself as a provider of AI infrastructure and high-performance computing solutions. The announcement follows a sharp decline in its shares during extended trading, reflecting investor concerns over dilution and capital structure amid the convertible note issuance.
