WhiteFiber IPO: Shares of AI data center operator begin trading

Preliminary trading in shares of US WhiteFiber, a subsidiary of bitcoin miner Bit Digital, has begun in the Freedom trading system for clients. WhiteFiber operates data centers, leasing computing power to developers of AI applications and machine learning systems. The company's securities are available by ticker symbol WYFI. They will appear on the Nasdaq exchange later Thursday.

WhiteFiber raised $159.4 million on the Nasdaq. Strong demand allowed the company to increase the number of shares offered on the exchange from 7.8 million to 9.4 million and place them at the upper end of the stated price range - at $17 per paper. According to calculations by Bloomberg, the data center operator's post-listing capitalization was $619 million. WhiteFiber shares will trade on Nasdaq under the ticker WYFI.  

B. Riley Securities, Needham & Co. and Macquarie Capital acted as organizers of the listing. Riley Securities, Needham & Co. and Macquarie Capital. According to data Bloomberg, demand during the bookbuild exceeded the offered volume many times;

WhiteFiber's story began in October 2023, when Bit Digital launched its AI division and signed its first cloud services customer. Now the company manages several data centers with servers on Nvidia chips. Its clients are developers of AI applications and machine learning systems. 

Bit Digital is one of the mining companies that switched to data centers after reducing the rewards for mining bitcoins. As part of winding down its mining operations, it sold $30 million worth of bitcoins to buy another cryptocurrency, Ethereum, wrote Bloomberg. As of mid-July, Bit Digital owned 120,300 Ethereum tokens (about $458 million at current exchange rates).

WhiteFiber's IPO isn't just a capital raise, it reflects Bit Digital's shift in strategy, said the website of investment platform AInvest. While the parent company has shifted its focus to Ethereum storage, WhiteFiber gets the freedom to focus on the growing AI infrastructure segment, an area in which investors are showing increased interest, the publication notes.

In its IPO filing, WhiteFiber indicated that its net income in the first quarter of 2025 grew 1.7 times to $1.4 million. Quarterly revenue doubled to $16.8 million. Last year, the company bought Canadian data center operator Enovum for $46 million, and in 2025, it announced plans to build a data center in North Carolina, Renaissance Capital reminds.

Freedom Broker analyst Alem Bektemirov gave a Buy recommendation on WhiteFiber shares. He forecasts the company's revenue to grow from $48 mln in 2024 to $2.5 bln by 2034. Margins are improving - EBIT margin (operating income to revenue ratio) jumped from 1% in 2024 to 11% in the first quarter of 2025, and Bektemirov's conservative forecast assumes its increase to 20%. Taking into account all financial assumptions and IPO proceeds, WhiteFiber's fair valuation, according to the analyst, is $787 million and the target share price is $21.8. This implies a growth potential of more than 28% over a 12-month horizon.

Among the key risks for WhiteFiber, the Freedom analyst highlighted the high competition in the data center and AI infrastructure market - the company is expected to compete with such large providers as Equinix, Digital Realty and CoreWeave. In addition, there is operational risk: if WhiteFiber fails to meet customer demand for computing resources in a timely manner or fails to fulfill contract terms, it may have to return prepayments, Bektemirov warned.

WhiteFiber is an interesting bet on an infrastructure AI business with real contracts and an ambitious roadmap. However, the company will need to demonstrate sustained revenue growth and customer base expansion to justify the valuation. Until then, it makes sense for investors to take a wait-and-see attitude, recommends AInvest.

WhiteFiber faces tough competition from established cloud providers and specialized infrastructure platforms originally focused on artificial intelligence, noted BitcoinMiningStock columnist Cindy Fan with experience in the mining industry. While the company is modeling $1.6 million in annual revenue per megawatt with an EBITDA margin of 75%, those numbers remain theoretical until new sites launch and increased resource consumption from customers, emphasized Feng.

"I remain cautiously optimistic. But until more projects turn into stable and diversified revenues, I will only build on the results already achieved," she declared. 

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Freedom clients will be able to get access to Figma shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the opening of the US exchanges (from 15:30-16:30 Astana time). To participate, click on the ticker WYFI.US

This article was AI-translated and verified by a human editor