WhiteFiber, Inc. (NASDAQ:WYFI), a prominent player in the data center and colocation services industry, focusing on AI and high-performance computing, recently secured a 10-year colocation agreement with Nscale Global Holdings, valued at $865 million. This deal highlights WhiteFiber's commitment to supporting advanced AI workloads and hyperscaler specifications at its NC-1 data center campus in Madison, North Carolina.
The partnership with Nscale, a leader in AI infrastructure, is a strategic move for WhiteFiber. Nscale's expertise in hyperscaler deployments aligns with WhiteFiber's goals, as emphasized by CEO Sam Tabar. The agreement is expected to double its initial size by the end of 2027, positioning WhiteFiber for further expansion. This collaboration also opens doors for additional development sites in WhiteFiber's pipeline, as noted by President Billy Krasskopoulos.
WhiteFiber is actively exploring institutional financing options to support the NC-1 campus's growth. The company has already invested $150 million in equity, reducing risks associated with debt financing. Plans to formalize a credit facility by early Q1 2026 are underway, with a focus on securing favorable terms. Investment-grade credit enhancement structures are also being considered to bolster WhiteFiber's financial strategy.
Despite a negative operating profit margin of -38.96%, WhiteFiber's recent developments have caught the attention of analysts. On December 16, 2025, Compass Point initiated coverage on WYFI with a "Buy" rating, setting a price target of $32. This suggests a potential price increase of approximately 89.68% from the current stock price of $15.22, indicating optimism about the company's future prospects.
WhiteFiber's financial performance shows a gross profit of $55,803 in the most recent quarter, with revenue of $165,138 and a cost of revenue of $109,335. However, operating expenses of $174,495 contribute to the current loss. The company's asset turnover ratio of 0.13 reflects its efficiency in using assets to generate revenue. The net value of its property, plant, and equipment is approximately $52.1 million, underscoring its substantial infrastructure investments.
