WhiteFiber Inc. Secures a Landmark $865 Million Colocation Agreement
WhiteFiber Inc. (NASDAQ: WYFI) announced on December 18, 2025, that its subsidiary, Enovum Data Centers Corp., has entered into a ten‑year colocation contract with Nscale Global Holdings. The agreement will deliver 40 megawatts of critical IT load across two 20‑megawatt phases at WhiteFiber’s NC‑1 AI data‑center campus in Madison, North Carolina. The total contract value is approximately $865 million.
Market Reaction
The disclosure of the deal prompted a significant rally in WhiteFiber’s shares. In pre‑market trading on December 19, the stock surged 15.45 %, reaching $16.51. This jump, the largest intra‑day movement in recent weeks, reflects investor enthusiasm for the company’s expanded footprint in artificial‑intelligence (AI) and high‑performance computing (HPC) infrastructure.
Strategic Significance
WhiteFiber’s portfolio—hosting, colocation, cloud‑based HPC GPU services, and ancillary storage, networking, observability, and security offerings—positions it at the forefront of AI‑driven workloads. The Nscale agreement reinforces the firm’s commitment to scaling its AI‑optimized data‑center capabilities, providing a steady revenue stream over a decade while expanding its geographic reach.
Citizens Securities has maintained a “Market Outperform” rating on WhiteFiber, citing the company’s robust growth trajectory and the strategic value of the new Nscale partnership. The rating underscores confidence that WhiteFiber’s pricing power and operational expertise will translate into above‑average returns for investors.
Financial Snapshot (as of 2025‑12‑17)
| Item | Value |
|---|---|
| Close Price | $14.30 |
| 52‑Week High | $40.75 |
| 52‑Week Low | $13.91 |
| Market Capitalization | $547 million |
| P/E Ratio | –27.49 |
The negative price‑earnings ratio reflects the company’s heavy investment in infrastructure and R&D, typical for a growth‑stage data‑center operator. Nevertheless, the recent capital infusion from the Nscale deal is expected to improve profitability metrics in subsequent reporting periods.
Outlook
With the new contract in place, WhiteFiber is poised to capture a larger share of the AI and HPC market. The company’s alignment with Bit Digital, Inc. and its recent rebranding from Celer, Inc. in October 2024 signal a strategic shift toward a unified, AI‑centric identity. Market participants will likely monitor how the firm leverages this partnership to sustain revenue growth, enhance operational efficiencies, and navigate the competitive landscape of high‑density data‑center services.
In summary, the $865 million, ten‑year colocation agreement with Nscale represents a pivotal milestone for WhiteFiber Inc., strengthening its financial foundation, validating its AI‑centric business model, and reinforcing investor confidence as reflected in the market’s robust trading response.
