Snapshot
- Ticker: WYFI (Nasdaq, IPO August 2025)
- Bucket: Data-Center Operators (HPC Pivots)
- Q4 2025 fund position: $27.8 M (1.76 M sh) — 0.50 % of 13F
- Heritage: Spun out of Bit Digital (BTBT); BTBT retains ~71.5 % post-IPO
- HQ: New York, NY
Business Overview
WhiteFiber is the AI/HPC infrastructure spin-off from Bit Digital, Inc. — Bit Digital separated its growing HPC business from its legacy Bitcoin mining operations to allow each to be valued cleanly. The IPO in August 2025 raised ~17/share.
WhiteFiber operates two product lines:
- Cloud Services (the larger and more mature segment) — owned NVIDIA H100/H200/B200 GPU capacity rented under multi-year contracts and on-demand to foundation-model and AI startup customers.
- Colocation (the growth bet) — purpose-built HPC data centers in the US (North Carolina) and Canada (Montreal) hosting customer-owned GPU deployments.
Geographic footprint includes Iceland (legacy Bit Digital site, cheap geothermal/hydro power, EU data residency) and an expanding US/Canada presence.
Financial Trajectory
| Metric (USD M) | FY24 (precursor, in BTBT) | Q2 2025 | Q3 2025 |
|---|---|---|---|
| Total revenue | 45.7 | 18.7 (+48 % YoY) | ~20.18 |
| — Cloud services | — | 16.6 (61 % GM) | — |
| — Colocation | — | 1.7 (60 % GM) | — |
| Adjusted EBITDA | — | 3.3 | — |
| Net loss | — | −8.8 | — |
Q2 2025 Adjusted EBITDA was depressed by IPO-related G&A jumping from 15.5 M; ex-IPO costs the underlying business is profitable on an EBITDA basis. The 60 %+ gross margins on both cloud and colocation segments point to genuine operating leverage at scale.
Balance Sheet & Capital
- Cash post-IPO: ~$183 M gross proceeds before fees
- CAD 43.8 M USD) undrawn debt facility with RBC for additional growth capital
Operational KPIs
- GPUs under contract (June 2025): ~4,000
- NC-1 (North Carolina): 1 M sq ft, 24 MW initial phase, target online Q1 2026
- MTL-3 (Montreal): 5 MW IT load Cerebras wafer-scale deployment; revenue Q4 2025
- Iceland sites: legacy capacity for cloud workloads with EU data residency
Why It Fits the Thesis
WhiteFiber is the only pure-play AI infrastructure name in the bucket — no residual Bitcoin mining, no legacy infrastructure to convert. The fund’s small position reflects that it is a smaller, newer, more speculative version of the CoreWeave thesis at much lower scale. Holding it provides exposure to “second-tier” GPU clouds that could consolidate, be acquired, or scale via future contract wins.
The Iceland location is strategically interesting: cheap geothermal/hydro power, naturally cold ambient (free cooling), and EU-jurisdiction data residency for European AI customers — a niche that pure-US operators cannot easily fill.
Position History in the Fund
| Quarter | Position |
|---|---|
| Q4 2025 | New, 1.76 M sh |
Risks
- Sub-scale. Too small to compete for hyperscaler-class contracts; restricted to mid-market AI startups.
- NVIDIA allocation risk. Smaller buyers get later access to scarce GPU generations.
- Iceland power competitive intensity — multiple AI infrastructure buildouts compete for the same Icelandic generation pool.
- Bit Digital control overhang — 71.5 % parent ownership creates conflicts and float constraints.
- No marquee anchor contract as of Q4 2025; thesis depends on landing one in 2026.