WhiteFiber Inc’s shares fell 24.3% to $20.50 in after-hours trading on Tuesday after the company announced a $250 million convertible senior notes offering due 2032 and a $60 million property acquisition for data center development.
The proposed private placement of convertible notes, which may be converted at the company’s discretion into cash or ordinary shares, follows the stock’s drop from its opening price of $28.83. Shares now trade near the lower end of their 52-week range of $10.51 to $46.87.
Proceeds from the notes will partly fund exchange transactions involving WhiteFiber’s existing 4.500% convertible notes due 2031. Initial purchasers of the new notes hold a 13-day option to acquire an additional $37.5 million.
Separately, WhiteFiber disclosed an all-cash agreement to acquire two industrial properties in Yadkin County, North Carolina, for $60 million. The facilities are intended to support data center campuses with an initial gross utility capacity of at least 60 MW and long-term potential of approximately 200 MW.
The company operates in cloud services and colocation, targeting AI and high-performance computing workloads. The broader market saw the Nasdaq Composite decline 1.7% during the regular trading session.
