WhiteFiber Unveils Pricing for Upsized $210 Million Convertible Notes Offering

WhiteFiber Unveils Pricing for Upsized $210 Million Convertible Senior Notes Offering

WhiteFiber, Inc., a prominent provider of artificial intelligence (AI) infrastructure solutions, has announced a significant financial development as it priced an upsized offering of $210 million in convertible senior notes. This offering comes as a pivotal step for the company in bolstering its operational capabilities and expanding its data center infrastructure to support the growing demand for AI and high-performance computing (HPC) services.

The convertible senior notes, due in 2031, are being offered to qualified institutional buyers and carry an annual interest rate of 4.500%. This initiative extends beyond the initial proposal of $200 million, reflecting the robust interest and demand from the market. The notes are expected to close on January 26, 2026, pending customary closing conditions.

Details of the Offering

The company has structured the offering to include an option for initial purchasers to buy an additional $20 million principal amount of the notes, enhancing the flexibility and scope of the transaction. Notably, the terms of the notes indicate that interest will be paid semiannually, starting on August 1, 2026, with a maturity date set for February 1, 2031. The conversion feature allows investors to convert their notes into ordinary shares, offering a conversion rate of 38.5981 shares per $1,000 principal amount, which presents a 27.5% premium over the last reported ordinary share price as of January 21, 2026.

WhiteFiber's leadership indicates that the net proceeds from this offering, estimated at approximately $202.1 million (or $221.5 million if additional notes are fully subscribed), will primarily fund essential expansions in its data center operations. This strategic investment is expected to include purchasing additional properties for new facilities, entering energy service agreements, and acquiring related technologies necessary for enhancing operational efficiency.

Strategic Implications

The upsized offering is poised to fuel WhiteFiber's ambitions to meet the surging demand for AI infrastructure. In a landscape where data centers are pivotal for AI applications, this infusion of capital will enable WhiteFiber to solidify its market position as a robust provider in a competitive sector. Notably, the company plans to utilize $120 million from the proceeds to fund a zero-strike call option transaction, ensuring that it can effectively manage its equity exposure while enhancing shareholder value.

Beyond the immediate application of funds, the company’s approach, underscored by its zero-strike call option strategy, signals a forward-thinking outlook, allowing WhiteFiber to leverage financial instruments to optimize shareholder returns while managing risks associated with its capital structure.

Future Prospects

As WhiteFiber moves forward with these plans, it joins a growing contingent of firms targeting the booming AI and HPC markets, which are anticipated to experience exponential growth in the coming years. With an emphasis on general corporate purposes, additional energy service agreements, acquisitions, partnerships, and joint ventures, the company is positioning itself not just as a participant but as a leader in the AI infrastructure space.

In conclusion, the upsized convertible senior notes offering by WhiteFiber not only reflects its robust financial health and market confidence but is also a strategic move aimed at enhancing its data center capabilities to cater to the accelerating demand for AI solutions. This pivotal step underscores WhiteFiber’s commitment to innovation and leadership in the AI infrastructure domain, setting the stage for future growth and success in an increasingly data-driven world.