AI Infrastructure Firm WhiteFiber Stock Soars 11% in Debut

AI infrastructure firm WhiteFiber, Inc. rose 11% in debut on Thursday.

WhiteFiber, an artificial intelligence infrastructure firm, raised $159.4 million in an initial public offering, pricing its shares at the top of a marketed range.

The subsidiary of crypto treasury firm Bit Digital Inc. sold 9.4 million shares Wednesday for $17 each after marketing them for $15 to $17, according to a statement confirming an earlier Bloomberg News report.

The pricing gives WhiteFiber a market value of $619 million based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.

WhiteFiber owns high-performance computing data centers and provides cloud-based HPC graphics processing unit services, the filings show. The company offers cloud services to customers such as AI application and machine learning developers.

The IPO attracted demand for multiple times the available shares, Bloomberg News has reported.

The unit is being carved out of Bit Digital, a publicly traded Ethereum staking and treasury company that holds approximately 120,306 ETH as of July 18, according to a statement. Its platform offers exposure to secure, scalable and compliant access to on-chain yield, the statement shows.

Bit Digital is one of many former Bitcoin miners that shifted its focus to data centers after Bitcoin mining rewards were reduced. As part of winding down its mining operations, the company sold around $30 million of Bitcoin tokens to purchase Ether.

WhiteFiber had net income of $1.4 million on revenue of $16.8 million for the three months ended March 31, compared with net income of $826,510 on revenue of $8.2 million in the same period a year earlier, according to the filing.

After the IPO, Bit Digital is expected to hold about 77.6% of the outstanding shares.