WhiteFiber Inc. (WYFI) shares dropped 21.4% in extended trading after the company disclosed a $60 million cash acquisition of two industrial properties in North Carolina and a proposed $250 million convertible note offering due 2032.
The properties, located in Yadkin County, will be converted into data center campuses named NC-2 and NC-3, with a combined minimum of 60 MW of initial gross utility capacity and potential to scale to approximately 200 MW. The acquisition was announced one day prior to the financing announcement.
The proposed private placement, offered to qualified institutional buyers under Rule 144A, includes an additional $37.5 million in principal available to initial purchasers within 13 days of issuance. The financing is tied to an exchange transaction involving WhiteFiber’s existing 4.500% Convertible Senior Notes due 2031.
The stock fell from a regular-session open of $28.83 to $21.27 in after-hours trading, well below its prior close of $27.07. On the same day, the S&P 500 rose 0.04%, the Dow Jones added 0.03%, and the NASDAQ was unchanged. Investor concerns centered on potential dilution from the convertible note structure, the complexity of the debt exchange, and the rapid capital deployment through the property acquisition.
