Core Insights - WhiteFiber, Inc. has secured a significant 10-year colocation agreement with Nscale Global Holdings, valued at $865 million, emphasizing its commitment to AI and high-performance computing [1][6] - The partnership is expected to double in size by the end of 2027, aligning with WhiteFiber's expansion strategy [2][6] - Analysts have initiated coverage on WhiteFiber with a "Buy" rating and a price target of $32, indicating optimism despite current financial challenges [4][6] Financial Performance - WhiteFiber reported a gross profit of $55,803 and revenue of $165,138, with a cost of revenue at $109,335, leading to a current loss due to operating expenses of $174,495 [5] - The company has a negative operating profit margin of -38.96%, which has raised concerns but also attracted analyst attention [4][6] - The asset turnover ratio stands at 0.13, reflecting the company's efficiency in utilizing its assets to generate revenue [5] Growth and Financing Strategy - WhiteFiber is exploring institutional financing options to support the growth of its NC-1 campus, having already invested $150 million in equity [3] - Plans are underway to formalize a credit facility by early Q1 2026, focusing on securing favorable terms and considering investment-grade credit enhancement structures [3]
WhiteFiber, Inc. Secures Major Colocation Agreement with Nscale Global Holdings
Financial Modeling Prep·2025-12-21 00:00