AI infrastructure co WhiteFiber tumbles on convertible offering plans
WYFI•WYFI•WYFI•WYFI•AI infrastructure firm WhiteFiber's WYFI.O shares fell 20.6% in post-market trading to $21.50 as it seeks capital.
The company said it is offering privately $250 million of convertible senior notes due 2032.
WhiteFiber intends to use net offering proceeds primarily for data center expansion, potential acquisitions, partnerships and joint ventures, among other uses. It also intends to use some proceeds to pay the cost of zero-strike call option transactions to facilitate hedging.
The New York City-headquartered company has a market cap of roughly $1 billion.
WYFI shares ended down 10.8% at $27.07 on Tuesday, cutting year-to-date gain to 71%.
The company went public last August in a $159 million IPO priced at $17.
Ten of 11 analysts rate the stock "strong buy" or "buy," while one rates it "hold"; the median price target is $38, according to LSEG data.
