WhiteFiber Raises $310M to Expand AI Data Centers
AI infrastructure provider WhiteFiber has raised $310 million through a convertible notes offering to fund its data center expansion and secure over 100 megawatts of new capacity by 2027.
WhiteFiber closed an upsized $310.0 million private placement of 5.00% convertible senior notes due September 1, 2032, on August 21, 2026, with interest payments starting March 1, 2027. This final amount included a $40.0 million option exercised by initial purchasers, growing from an August 19, 2026 pricing of $270.0 million that was already upsized from an initial $250.0 million. The notes feature an initial conversion price of $33.84 per share, representing a 25% premium over the August 18, 2026 Nasdaq Capital Market price, or a conversion rate of 29.5530 shares per $1,000 principal. WhiteFiber received $298.5 million in net proceeds, using $118.5 million to exchange existing debt and leaving $180 million for data center expansion.
The debt exchange retired 86% of the company's 4.500% notes due 2031, which were issued seven months prior. WhiteFiber traded $198.15 million of those notes for the $118.5 million cash and 6.3 million ordinary shares, leaving $31.85 million outstanding. This pushes maturities out by a year for a half-point coupon increase. The remaining $180 million will fund property acquisition, facility construction, energy agreements, and GPU servers. CEO Sam Tabar stated this liquidity secures development for the NC-1 site in North Carolina, aiming to bring over 100 MW of capacity online in 2027, with leases targeted for the fourth quarter of 2026. For cloud practitioners, this funding secures critical GPU compute capacity and mitigates supply chain delays by allowing early equipment procurement.
This capital is crucial for WhiteFiber's balance sheet. For the quarter ended March 31, 2026, the firm spent $169.2 million on property and equipment against $21.9 million in revenue—comprising $16.8 million from cloud services and $4.8 million from colocation. Cash stood at $75.8 million, while property and equipment grew to $432.0 million from $336.6 million. WhiteFiber can redeem the new notes after September 6, 2030, if its stock exceeds 130% of the conversion price for 20 trading days in a 30-day window. Spun out of Bit Digital, which held a 70.1% stake, WhiteFiber has seen its valuation rise since its August 8, 2025 IPO at $17.00.
This is our own summary of reporting by Unite.AI
