WhiteFiber Inc. (NASDAQ:WYFI) is one of the new stocks on the rise. Earlier on December 24, B. Riley lowered its price target on WhiteFiber to $40 from $44. This sentiment was posted based on model changes while maintaining a Buy rating. B. Riley noted that the company’s December 18 announcement of a 10-year co-location agreement with UK-based Nscale at its NC-1 campus. This initial agreement for 40 MW of critical IT load is expected to generate $865 million in total revenue, or approximately $2 million ...

Core Insights - The investment landscape is shifting towards companies that support AI infrastructure, with significant investments in data centers by major cloud service providers [1][2] - Data storage companies have shown remarkable performance, with Sandisk Corp. leading the S&P 500 index in 2025, followed by Western Digital and Seagate Technology [1] - There is a growing interest in lesser-known companies that provide essential services and products for AI and data center operations, moving beyond traditional tech giants [2] Data Storage - Data storage companies like Sandisk, Western Digital, and Seagate are expected to maintain their momentum into 2026, although their peak may be nearing [3] - Analysts project an average target price of $264 for Sandisk in 2026, an increase of approximately 8% from its current price of around $244 [3] - Pure Storage Inc. is anticipated to have a larger upside potential, with a projected price increase of 38% to $94 by 2026 [3] Construction and Power - Companies involved in data center construction and power supply are expected to continue their upward trajectory, with Quanta Services Inc. being a preferred choice among analysts [4] - Other notable contractors include MYR Group Inc., Primoris Services Corp., and MasTec Inc., which are also well-positioned for growth [4] - Companies like Amphenol, which designs and manufactures high-speed fiber and copper interconnect solutions, are favored in the wiring business [4] Bitcoin Miners - Bitcoin miners are seen as a potential "revaluation story," transitioning from cryptocurrency mining to powering data centers [5] - Companies such as Bitdeer Technologies Group and IREN Ltd. are gaining attention as they pivot towards high-performance computing data centers [5] Heating and Cooling - The demand for precision heating, ventilation, and air conditioning systems for data centers is creating opportunities for companies like Vertiv Holdings Co., which saw a 46% increase in 2025 [6] - Other companies in this sector include Comfort Systems USA Inc. and Xylem Inc., which provide HVAC systems and water solutions [6] Software - Software is being recognized as a future beneficiary of AI advancements, with investors looking for undervalued companies with significant growth potential [7] - Despite a lackluster performance in 2025, software stocks are becoming more attractive, with companies like Snowflake Inc., Datadog Inc., and ServiceNow Inc. being closely monitored [7]

Core Insights - WhiteFiber Inc. has secured a significant 10-year colocation agreement valued at approximately $865 million with Nscale Global Holdings, focusing on AI infrastructure [1][3] - The agreement will be executed in two phases, each delivering 20 MW of critical IT load, with billing for the first phase starting on April 30, 2026 [2] - The NC-1 data center campus, where the agreement will be implemented, spans one million square feet and is designed to support ultra-high-density environments [3] Company Developments - WhiteFiber has invested $150 million in equity into the NC-1 project to mitigate future financing risks [3] - The company is in advanced discussions for institutional financing, expecting to formalize a credit facility in early Q1 2026 [4] - WhiteFiber specializes in designing, developing, and operating data centers, providing AI infrastructure solutions, including hosting, colocation, and cloud-based HPC GPU services [4]

Core Viewpoint - B. Riley has lowered its price target on WhiteFiber Inc. to $40 from $44 while maintaining a Buy rating, following the company's first long-term co-location agreement [1] Group 1: Company Developments - WhiteFiber announced its inaugural long-term co-location agreement at the NC-1 data center campus with Nscale Global Holdings, which took longer to finalize than expected [2] - The company reaffirmed its original deployment timeline, highlighting its execution capabilities and validating its retrofit-based development model [2] Group 2: Financial Outlook - WhiteFiber is in advanced discussions with multiple lenders regarding a construction financing facility, expected to be completed in early first-quarter 2026 [3] - Management indicated that potential credit enhancements could lower overall funding costs, with more clarity on ultimate off-takers [3] Group 3: EBITDA Forecasts - B. Riley has modestly reduced its EBITDA forecasts, lowering the second-quarter 2026 estimate to $17.9 million from $19.5 million and the full-year 2026 estimate to $92.7 million from $99.5 million [4] - The upcoming capacity is expected to come online in under two quarters, supporting WhiteFiber's speed-to-market thesis and positioning the company for expansion across multiple sites [4] Group 4: Valuation Metrics - WhiteFiber is currently trading at approximately 11x EV/EBITDA on 2026 estimates and about 8x EV/EBITDA on a fourth-quarter 2026 run-rate basis, indicating a notable discount to peer valuations in the mid- to high-teens [5]

Core Insights - The AI sector is facing increased scrutiny, with concerns about a potential bubble as evidenced by a nearly 14% decline in NVIDIA's shares since late October 2025, prompting mixed reactions from investors [3] - Despite the volatility, there is a growing interest in smaller AI firms, which, while riskier, present opportunities for risk-tolerant investors [4][7] Company Summaries - **NVIDIA Corp.**: As a leading player in the AI industry, NVIDIA's recent share decline may signal a broader market concern, yet it remains a key indicator for the sector [3] - **WhiteFiber Inc.**: The company is expanding its data center operations, with a projected revenue run rate of approximately $1 million per month from its Montreal facility. However, it reported a widening operating loss of $14.5 million due to increased general and administrative expenses, despite a 63% gross margin and third-quarter revenue of over $20 million, marking a year-over-year increase of nearly two-thirds [5][6] - **AudioEye and Red Violet**: These companies, alongside WhiteFiber, are highlighted for their growth potential in the AI space, despite the inherent risks associated with smaller firms [7]

Core Viewpoint - Bit Digital, Inc. is shifting its business model from Bitcoin mining to Ethereum staking, resulting in increased revenue and a growing ETH treasury [1][3]. Financial Performance - Bit Digital reported third-quarter revenue of $30.5 million, with ETH staking rewards rising to $2.9 million from $0.4 million in the previous quarter, driven by ETH holdings increasing to approximately 122,127 ETH [3][4]. - By October 30, Bit Digital's ETH treasury reached around 153,547 ETH, valued at approximately $486 million, while the company's market cap is about $775 million, suggesting undervaluation of its assets [4]. Analyst Insights - Analyst Kevin Dede maintains a Buy rating with a price target of $7, citing strong third-quarter results as support for a positive long-term outlook [2]. - Dede conservatively models staking revenue, assuming rewards are reinvested into validator nodes, and notes that Bit Digital has not yet committed to running its own validators, which could enhance returns [5]. - Dede has raised revenue estimates for WhiteFiber, projecting fiscal 2026 revenue at $252.1 million and fiscal 2025 at $112.6 million, which will positively impact Bit Digital's consolidated outlook [6]. Strategic Focus - The company's strategy centers on expanding its ETH treasury, leveraging WhiteFiber's positioning in HPC-AI, and maintaining financial flexibility with approximately $135 million in unsecured convertible debt [7].

Core Insights - Bit Digital, Inc. reported significant financial growth in Q3 2025, with total revenue reaching $30.5 million, a 33% increase from $22.8 million in Q3 2024, driven by growth in its WhiteFiber business and ETH staking revenue [5][4] - The company is transitioning to a pure-play Ethereum treasury and staking strategy, having acquired approximately 31,057 ETH in October 2025, funded by a $150 million convertible notes offering [3][4] - Net income for Q3 2025 was $146.7 million, or $0.47 per diluted share, a substantial recovery from a net loss of $38.8 million in the same quarter of the previous year [5][4] Financial Performance - Total revenue for Q3 2025 was $30.5 million, a 33% increase year-over-year [5] - Revenue from digital asset mining decreased by 27% to $7.4 million due to increased network difficulty [5] - Revenue from cloud services increased by 48% to $18.0 million [5] - Revenue from ETH staking surged by 542% to $2.9 million, attributed to higher staking rewards and ETH price [5] Ethereum Strategy - Bit Digital's ETH position grew significantly, with 132,480 ETH actively staked as of October 31, 2025, generating an annualized effective yield of approximately 3.05% [4][3] - The company aims to build one of the largest Ethereum treasuries in public markets while maintaining exposure to AI infrastructure through its majority stake in WhiteFiber [7][3] Operational Updates - The company mined 64.9 BTC in Q3 2025, down from 165.4 BTC in the prior year, as it continues to wind down its bitcoin mining operations [6][5] - As of September 30, 2025, Bit Digital's total digital assets were valued at $423.7 million, up from $161.4 million at the end of 2024 [5][4] Management Commentary - The CEO emphasized the company's focus on Ethereum and AI as key growth drivers, highlighting the importance of disciplined capital deployment and maintaining balance sheet strength [7][3] - The management expressed confidence in Ethereum's future, citing expanding utility and institutional adoption [7][3]

Core Viewpoint - Bit Digital, Inc. has announced the public filing of a registration statement for the proposed initial public offering (IPO) of its wholly-owned subsidiary, WhiteFiber Inc. [1] Group 1: IPO Details - The number of shares and price range for the proposed offering have not yet been determined [2] - The IPO is subject to market conditions and the SEC's review process, with plans to list on The Nasdaq Capital Market under the symbol "WYFI" [2] - B. Riley Securities and Needham & Company are acting as joint-bookrunning managers for the offering [2] Group 2: Registration Statement - A registration statement has been filed with the SEC but is not yet effective, meaning securities cannot be sold or offers accepted until it becomes effective [4] Group 3: Company Overview - Bit Digital is a publicly traded digital asset platform focused on Ethereum-native treasury and staking strategies, operating one of the largest institutional Ethereum staking infrastructures globally [6] - The company began accumulating and staking ETH in 2022 and aims to provide secure, scalable, and compliant access to on-chain yield through strategic partnerships [6]

NEW YORK, June 25, 2025 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), today announced that its wholly-owned HPC subsidiary, WhiteFiber Inc. ("WhiteFiber"), has confidentially submitted a draft registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the "SEC") relating to the proposed initial public offering of WhiteFiber's ordinary shares. The number of shares to be offered and the price range for the proposed offering have not yet been deter ...