Bit Digital Spins Out WhiteFiber in $15–17 IPO to Focus on AI Infrastructure Growth

WhiteFiber, the high-performance computing (AI/HPC) subsidiary of Bit Digital (NASDAQ: BTBT), has launched its initial public offering under the ticker symbol WYFI on the Nasdaq Capital Market [1]. The company is offering 7,812,500 ordinary shares at a 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 [1]. This strategic move allows Bit Digital to maintain an 80% ownership stake in WhiteFiber while granting the latter access to public capital and greater operational independence [1].

The IPO is more than a capital raise; it reflects a broader shift in Bit Digital’s strategic focus. While the parent company has pivoted toward an Ethereum treasury strategy, WhiteFiber’s public listing allows it to focus solely on AI and cloud infrastructure, a sector that is currently attracting strong investor interest [1]. By carving out this high-growth unit, Bit Digital aims to reduce its exposure to crypto volatility while continuing to benefit from WhiteFiber’s financial success [1].

WhiteFiber operates as a full-stack provider of AI infrastructure, offering GPU-based cloud services and Tier-3 data center colocation. Its GPU cloud services provide access to high-performance NVIDIA hardware, including H200, B200, and GB200 chips, and are supported by a proprietary software layer that enables cross-site GPU orchestration. The colocation services feature power-dense, liquid-cooled data centers designed specifically for generative AI workloads [1].

The company’s current operational portfolio is supported by a pipeline of approximately 1,300MW, with 800MW under non-binding letters of intent [1]. WhiteFiber forecasts reaching 76MW of gross capacity by the end of 2026. This growth is supported by a mix of secured power agreements and strategic acquisitions. However, the challenge lies in converting these plans into operational reality—permits, timelines, and power delivery must align for the company to meet its goals [1].

Revenue momentum is evident, with $45.7 million reported for full-year 2024 and $14.8 million in Q1 2025 [1]. The company’s revenue is currently concentrated, with major contracts from Cerebras and Boosteroid accounting for a significant portion of its commitments. These partnerships provide early revenue visibility but also create concentration risk; if either party underutilizes capacity, quarterly earnings could fluctuate [1].

Capital expenditure is a key concern. WhiteFiber estimates development costs of $7–9 million per MW, excluding real estate costs, and plans to finance approximately 70% of this with facility-level debt [1]. The company recently secured a $43.8M CAD facility from the Royal Bank of Canada, but further financing may be required as it scales. Its ability to access capital efficiently will be crucial to meeting 2026 buildout targets [1].

WhiteFiber’s IPO marks a strategic carve-out rather than a spin-off, allowing it to remain under Bit Digital’s control while accessing public market funding. This structure provides continuity in management and governance but raises questions about long-term independence. The company’s leadership includes several key Bit Digital executives and newly appointed independent directors with domain expertise [1].

For investors, the IPO offers exposure to a pure-play AI infrastructure business with real customers and a defined growth path. However, the company must demonstrate consistent revenue growth and diversified client adoption to justify its valuation. Given Bit Digital’s previous revenue shortfall, caution remains warranted until more of the pipeline is converted into recurring revenue [1].

WhiteFiber’s IPO represents a calculated step in the evolving AI infrastructure landscape. By leveraging its parent company’s strategic shift, the firm aims to secure a position among emerging cloud and AI-native infrastructure providers. Execution, however, will be key—timelines must hold, power must be delivered, and customers must scale. Until then, investors remain in a watchful wait.

Sources:

[1] Decoding WhiteFiber’s IPO: Bit Digital’s AI Infrastructure Arm Steps Into the Spotlight, https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=decoding-whitefibers-ipo-bit-digitals-ai-infrastructure-arm-steps-into-the-spotlight