WhiteFiber Issues $310M Convertible Notes for Data Center Expansion
The company secures significant funding to expand its AI infrastructure.
1WhiteFiber's Major Financing Move
WhiteFiber completed the issuance of $310 million in convertible notes on August 21, 2026. These notes will mature in 2032 and carry a 5% interest rate. The company netted approximately $298.5 million from the transaction, with $118.5 million allocated to exchange existing convertible debt and $180 million earmarked for data center expansion.
2Conversion Price and Premium
The initial conversion price of the notes was set at $33.84 per share, representing a 25% premium over WhiteFiber's last reported sale price on the Nasdaq Capital Market. Although the offering was initially planned at $250 million, demand pushed the final principal to $310 million.
3Exchange of Existing Notes
WhiteFiber exchanged $198.15 million in principal of its 2031 convertible notes. In this transaction, noteholders received approximately $118.5 million in cash and 6.3 million shares. This exchange retired about 86% of the 2031 notes, reducing the company's balance sheet burden.
4Data Center Expansion Plans
WhiteFiber plans to use the proceeds for data center expansion. This includes leasing or purchasing new development properties, constructing facilities, signing energy service agreements, and acquiring equipment such as GPU servers to strengthen its cloud business.
5CEO's Statement
WhiteFiber CEO Sam Tabar stated that this transaction significantly enhances the company's liquidity and provides capital certainty for completing the first phase of NC-1. Tabar aims to bring over 100 MW of additional capacity online by 2027, with long-term leases expected to be signed in Q4 2026.
6Company's Financial Position
According to WhiteFiber's quarterly report for March 31, 2026, the company invested $169.2 million in property, plant, and equipment in a single quarter. Revenue for the period stood at $21.9 million. Cash and cash equivalents were recorded at $75.8 million, while property, plant, and equipment reached $432 million.
7Project Financing Model
WhiteFiber adopts a financing model common among AI data center developers. The company first uses corporate-level convertible notes to fund site control, construction, and long-lead equipment. It then secures project-level debt against the facility itself once leases make it financeable.
8NC-1 Project and Future Plans
The NC-1 site in North Carolina serves as a large-scale testbed for WhiteFiber. CEO Sam Tabar emphasized that the new capital will protect the project timeline. Site preparation and long-lead equipment orders are being advanced to ensure delivery by 2027, targeting over 100 MW of additional capacity.