Bit Digital Inc (NASDAQ: BTBT) subsidiary, WhiteFiber Inc, filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission on Wednesday.
The proposed company would trade under the ticker NASDAQ: WYFI and operate in the artificial intelligence (AI) infrastructure space. Its typical customer would include high-performance computing (HPC) services working in generative AI and machine learning.
As such, it runs vertically integrated data centers equipped with specialized GPU hardware designed to support computer intensive applications.
Additionally, WhiteFiber provides cloud hosting, colocation, and GPU-accelerated computing solutions. Its customers range from AI researchers to enterprise clients in need of scalable computing resources.
WhiteFiber has also made approximately USD$56 million in revenue this year. That figure represents a significant increase compared to earlier reporting periods and reflects growing demand for AI infrastructure.
The company’s IPO will be managed by B. Riley Securities and Needham & Company, which will act as joint book-running managers. However, WhiteFiber has not yet disclosed the number of shares it intends to offer or the expected price range. Therefore, the company’s final valuation and listing timeline remain subject to regulatory review and market conditions.
WhiteFiber previously submitted a confidential filing in February 2025 before publicly filing in July. The typical SEC review process can take two to three months, depending on the scope of comments and responses. A listing could take place as early as the third quarter of 2025, assuming the process moves forward without significant delays.
Read more: Bit Digital escapes Bitcoin and doubles down on Ethereum mining
Read more: Bitmine Immersion shares jump 45% on Ethereum purchases
The proposed spinout will produce complications
The proposed IPO represents a strategic carve-out by Bit Digital.
Bit Digital’s decision to spin out WhiteFiber as a publicly listed company reflects a push to highlight the subsidiary’s value on its own terms. The move is also expected to offer clearer insight into WhiteFiber’s financial results and business operations. With more autonomy, WhiteFiber would be in a better position to fund capital-heavy efforts like building data centers or securing high-performance hardware.
However, stepping out from under its parent brings complications.
Market conditions in 2025 have been anything but steady, especially for tech stocks. IPOs have seen unpredictable results, with some AI firms soaring and others struggling to gain traction. WhiteFiber’s success as a public company will depend on more than its recent revenue growth—it will also hinge on how the market views its business model, margins, and potential to scale.
Further, the IPO isn’t without risk.
Launching a new public entity requires establishing separate corporate governance, regulatory compliance mechanisms, and investor relations strategies. These elements must all align for the transition to succeed. Furthermore, WhiteFiber will face increased scrutiny from analysts and the broader financial press once it begins trading.
The broader AI infrastructure market continues to show strong momentum. Analysts expect the sector to grow at a compound annual rate exceeding 20 per cent through the end of the decade. WhiteFiber is positioning itself as a key player within this evolving landscape by expanding its data center footprint and securing long-term supply agreements for high-performance GPU hardware.
Read more: Israel based hacker group steals millions from Iran’s largest cryptocurrency exchange
Read more: Hive Digital levels up Bitcoin mining by passing the 10 exahash per second mark
Rising bitcoin mining overhead spurs diversification
Bit Digital shares rose following the announcement of WhiteFiber’s public filing.
Also, the parent company now markets itself as a dual-play opportunity in both cryptocurrency and AI infrastructure. This branding shift suggests an evolving business model focused on future-facing technologies and recurring infrastructure revenue.
Former Bitcoin mining companies are diversifying as rising energy costs and lower mining rewards squeeze profits. Additionally, the 2024 Bitcoin halving cut block rewards in half, intensifying pressure. Many firms are shifting toward high-performance computing (HPC), AI infrastructure, or alternative cryptocurrencies to remain viable.
Hut 8 Corp (NASDAQ: HUT) (TSE: HUT) once focused solely on Bitcoin, now leases infrastructure to enterprise AI clients. The company merged with US Bitcoin Corp to expand its data center capacity beyond crypto. HIVE Digital Technologies Ltd. (CVE: HIVE) (NASDAQ: HIVE) (FSE: YO0) also rebranded, pivoting from Bitcoin mining to AI-focused data center services. It recently announced plans to support GPU-based compute workloads.
Therefore, these firms are retooling their operations to tap more stable, growing markets. AI and cloud computing offer stronger margins and steadier demand than volatile crypto. However, some companies, like Bitfarms Ltd (TSE: BITF) (NASDAQ: BITF), continue mining but have added Ethereum and other altcoins to hedge risk.
Also, regulators and investors now expect crypto firms to show flexibility and long-term resilience. Diversifying away from pure Bitcoin mining helps meet those expectations while unlocking new revenue streams.
