CK Capital
Defense/Space/Tech/Photonics Investor, Co-Owner of CV Research
WhiteFiber's latest raise is even more brutal for holders. Its convertible notes offering grew from $250 million to $310 million with the full option exercised, about a third of its market cap after the upsize. It is the second raise this year, at a higher coupon than January's, and roughly $118 million goes straight to repaying the January notes. x.com x.comÂ
WhiteFiber's ability to fund its ramp without dilution was the key test for the stock, and a convertible announcement worth about a quarter of its market cap, flagged by @OG_PViews, cuts against it. Signed contracts help, including a ten-year, $865M NC-1 deal and a $160M Paris deployment, and retrofit builds cost up to 40% less than greenfield. But access to capital is the main hurdle, with a $100M term loan from majority owner Bit Digital, and AI managements tend to dilute given heavy capex. … Show more
WhiteFiber's Q2 growth leaned on a termination fee from a departing customer; stripped out, the operating business shrank year over year and sequentially. The near-costless fee inflated growth, gross margin and adjusted EBITDA, while cash halved and interest expense appeared. Colocation, meant to be the growth engine, slipped versus Q1 as NC-1 contributed almost nothing. Backlog looks real and full billing on NC-1's 40 MW would be the inflection, but next quarter has to stand on its own. x.comÂ
WhiteFiber is a live short-squeeze candidate, with 57.1% of its float sold short and 3.0 days to cover, and the move has not happened yet. Short interest data settles about a month behind, with new figures due September 1. x.comÂ
Cipher Mining's convertible notes cap intermediate-term upside at around $22. Raising $775M through an ATM while shares were in the $20s would have caused less dilution and avoided forward share-price risk; doing this deal at $11 instead was terribly timed. The stock is not worth touching here. x.com x.comÂ
WFF's $612.4 million valuation looks vulnerable after its 559% surge: recent F-3 and 424B5 filings pose dilution risk. x.comÂ
WhiteFiber is tied to AI infrastructure growth through strong demand for high-density data-center capacity. It has a major long-term colocation deal worth about $865 million, and rising institutional ownership shows more institutions building positions. The stock still has room to be discovered. x.comÂ
WhiteFiber is not worth buying at current levels because it will dilute shareholders; it already looked like a short at $30. x.comÂ
Bit Digital's Q2 was strong financing but weak operations, so its revenue should stand on its own before paying up. Headline growth came from WhiteFiber, partly from a departing customer, while mining and Ethereum staking have shrunk. Bit Digital borrowed $50 million against its ETH and committed up to $150 million to fund WhiteFiber's NC-1 build. Shifting ETH into liquid staked tokens lets it be written down but not back up. NC-1 billing at full load from Q3 is the test. x.comÂ
WhiteFiber just received an upgrade to a $50 price target. It is also a Leopold Aschenbrenner holding, a whale worth following. x.comÂ
CoreWeave is back to funding itself with debt: its shares sank on a $3 billion convertible note offering. x.comÂ
