B. Riley Securities maintained its Buy rating and $38 price target on WhiteFiber (NASDAQ: WYFI) , citing two pending North Carolina transactions that could unlock more than 100 MW of additional capacity in 2027. The target implies about 94% upside from the $19.54 closing price used in the note.
Analyst Nick Giles identified WhiteFiber's proposed NC-1 project financing as the more consequential event because it would recycle capital from the delivered campus into future development. B. Riley said WhiteFiber had moved from lender exclusivity into definitive documentation and expects the financing to close within weeks.
The firm lowered its third-quarter adjusted EBITDA estimate to $8 million from $10.3 million, reflecting a transition between AI cloud contracts and the NC-1 ramp. B. Riley still forecasts $43.3 million of adjusted EBITDA for 2026, rising to $149.4 million in 2027 and $218 million in 2028.
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WhiteFiber closed a $310 million offering of 5% convertible senior notes due 2032 on August 21. The notes converted initially at $33.84 per share, while net proceeds totaled about $298.5 million.
WhiteFiber used approximately $118.5 million of those proceeds to exchange $198.15 million of its 4.5% convertible notes due 2031 for cash and roughly 6.3 million shares. That left $31.85 million of the 2031 notes outstanding and about $180 million of proceeds primarily available for data-center expansion.
The capital covers WhiteFiber's planned $60 million acquisition of two Yadkin County industrial properties, according to B. Riley. The 228-acre portfolio is expected to provide at least 60 MW of gross utility capacity at the outset, equivalent to about $1 million per disclosed gross MW, with potential expansion toward 200 MW.
WhiteFiber expects the acquisitions to close in the fourth quarter and targets capacity initially ready for service in the third quarter of 2027. The company has not disclosed critical IT load, conversion spending, rack density or the capacity allocation between NC-2 and NC-3.
WhiteFiber has received non-binding letters of intent from prospective customers carrying investment-grade credit support, although definitive contracts remain a gating item. WhiteFiber plans to start site work and procure long-lead equipment before targeting long-term lease execution during the fourth quarter.
A 10-year Nscale colocation agreement covers NC-1's 40 MW of critical IT load and about $865 million of contracted revenue. Nscale subsequently secured up to $1.2 billion of investment-grade, non-recourse financing for its Madison deployment, although that loan is separate from WhiteFiber's proposed NC-1 financing.
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B. Riley values NC-1 at $1.56 billion using a 20 times multiple on $78 million of annual NOI. Its sum-of-the-parts model produces $1.52 billion of equity value after estimated net debt and other adjustments. B. Riley disclosed that WhiteFiber has been an investment-banking client within the past 12 months.
