WhiteFiber Drops After Hours on Planned $250M Convertible Notes Offering

WhiteFiber Inc shares moved lower in Tuesday's after-hours trading after the company announced a proposed offering.

WhiteFiber stock is under bearish pressure. What is weighing on WYFI shares?

WhiteFiber Announces Proposed Offering

WhiteFiber said it plans a private placement to institutional investors of $250 million in convertible senior notes due 2032. The AI infrastructure company intends to grant underwriters a 13-day option to purchase up to an additional $37.5 million in notes.

WhiteFiber expects to use the net proceeds from the offering primarily to fund data center expansion, as well as for potential acquisitions, partnerships, and joint ventures related to its data center expansion plans.

As of June 30, WhiteFiber held approximately $60.4 million in cash and restricted cash.

WYFI Stock Drops Sharply After Hours

WYFI Price Action: WhiteFiber shares fell 24.27% in after-hours trading Tuesday, trading at $20.50 at the time of writing. The stock declined 10.81% during Tuesday's regular trading session.