WhiteFiber Inc., the high-performance computing and AI infrastructure subsidiary of Bit Digital (NASDAQ: BTBT), has officially launched its initial public offering. According to SEC filings, WhiteFiber is offering 7,812,500 ordinary shares at a proposed price range of $15.00 to $17.00 per share, with underwriters granted a 30-day option to purchase an additional 1,171,875 shares. The stock will trade on the Nasdaq Capital Market under the ticker WYFI.
Strategic Carve-Out, Not a Spin-Off
Unlike a traditional spin-off, WhiteFiber's IPO is a carve-out: Bit Digital is selling roughly a 20% stake in its AI/HPC business to the public while retaining approximately 80% ownership and voting control post-offering, making WhiteFiber a “controlled company” under Nasdaq rules. This structure allows Bit Digital to maintain upside exposure while granting WhiteFiber operational independence and direct access to capital. Importantly, Bit Digital shareholders will not automatically receive WhiteFiber shares.
Business: GPU Cloud Services and Tier-3 Data Centers
WhiteFiber operates two integrated services tailored for generative AI workloads. GPU cloud services provide access to high-performance NVIDIA GPUs (H200, B200, GB200) across managed data centers, supported by the proprietary WhiteFiber Cloud AI software layer that links clusters into a virtual supercluster. Tier-3 data center colocation offers N+1 cooling, 150kW rack density, and direct-to-chip liquid cooling, built to handle AI's high power and cooling demands.
Revenue Momentum and Customer Concentration
WhiteFiber reported $14.8 million in Q1 2025 cloud revenue and $45.7 million for full-year 2024. As of June 2025, approximately 4,000 GPUs were under contract. However, caution is warranted: Bit Digital previously missed its $100 million annualized revenue target. Revenue concentration is high, with two anchor customers – Cerebras (5MW, five-year agreement) and Boosteroid (initial $7.9M order with expansion rights up to 50,000 servers) – representing a significant portion of commitments. Delays or underutilization by these customers could cause sharp quarterly swings.
Capital Requirements and Buildout Plans
The company's growth is capital-intensive: data center development costs are estimated at $7–9 million per MW (excluding ~$1 million per MW for real estate). About 70% of capex is expected to be financed through facility-level debt, including a recent $43.8 million CAD facility from Royal Bank of Canada. WhiteFiber targets 76MW of gross capacity by end of 2026, with a broader pipeline of ~1,300MW, of which 800MW is under non-binding letters of intent. Execution and conversion of these projects remain critical challenges.
Outlook: Cautious Optimism
WhiteFiber's IPO offers a pure-play AI infrastructure investment with real customers, meaningful revenue, and a clear buildout strategy. For Bit Digital, it separates high-growth AI from crypto volatility. Yet risks persist: competition from established cloud providers, conversion of contracts into recurring revenue, and capital efficiency. Given Bit Digital's previous revenue miss, we maintain cautious optimism. Demand is real and partnerships are strong, but until more pipeline converts into diversified, recurring revenue, the focus remains on what has already been delivered.