WhiteFiber Inc (NASDAQ: WYFI) disclosed a $250 million convertible senior notes offering, due 2032, to be issued in a private placement to qualified institutional buyers. The notes are senior unsecured obligations that will accrue interest payable semiannually, with conversion terms to be determined at pricing; upon conversion the company may deliver cash, ordinary shares, or a combination at its election. Initial purchasers are granted an option to purchase up to an additional $37.5 million principal amount of notes, and any proceeds from such additional purchases will be allocated to the same uses as the primary offering.
The company indicated that a portion of the net proceeds will be used to pay cash consideration for concurrent note‑exchange transactions. The remaining funds are earmarked primarily for data‑center expansion, including leasing or purchasing additional properties for new facilities, construction of those facilities, entering energy service agreements, and acquiring related equipment such as GPU servers for its cloud business. Further intended uses include potential acquisitions, partnerships, joint ventures, working capital, and general corporate purposes. WhiteFiber noted that it will require additional project financing, such as construction loans, to fully execute the outlined initiatives and may opportunistically raise additional capital.
Key terms such as the interest rate, initial conversion rate, and any repurchase or redemption rights will be set at the time of pricing the offering. Following the announcement, WhiteFiber shares fell approximately 25% in after‑hours trading on Tuesday, reflecting the market’s reaction to the financing plan.