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 Viewpoint - WhiteFiber, Inc. has secured a long-term colocation agreement with Nscale Global Holdings, marking a significant step in its strategy to support AI and high-performance computing infrastructure [1][2]. Group 1: Agreement Details - The agreement includes a delivery of 40 megawatts (MW) of critical IT load at WhiteFiber's NC-1 data center in Madison, North Carolina, representing approximately $865 million in contracted revenue over a 10-year term [2][7]. - The contract features annual rate escalators of 3% on recurring service fees and includes non-recurring installation services, while electricity and certain costs are passed through to the customer [2][7]. - The first 20 MW is expected to be ready for service by April 30, 2026, with the second 20 MW by May 30, 2026 [7]. Group 2: Financial and Operational Outlook - WhiteFiber is in advanced discussions with lenders for institutional financing options to support NC-1 construction and broader growth objectives, with an expected credit facility formalization in early Q1 2026 [3]. - The company has invested approximately $150 million in equity into the NC-1 site, which has de-risked the debt financing process [3]. - The facility is designed to support up to 150 kW per cabinet with a targeted average Power Usage Effectiveness (PUE) of 1.3 or better, backed by a 99 MW capacity agreement with Duke Energy [7]. Group 3: Strategic Positioning - The partnership with Nscale validates WhiteFiber's strategy to engineer NC-1 for hyperscaler specifications, aiming to potentially double the deployment size by the end of 2027 [4]. - WhiteFiber's customer-first approach is emphasized, ensuring partners can deploy at scale with speed and confidence, which positions the company to unlock additional development sites [4]. - The NC-1 facility anchors WhiteFiber's U.S. colocation platform, with commercial demand from this agreement shaping future site developments for 2026 and 2027 [7].