WhiteFiber Inc. (WYFI) shares jumped 15.45% to $16.51 in pre-market trading Friday after announcing a substantial colocation agreement that could generate hundreds of millions in revenue over the next decade.

The Deal Breakdown

According to a Monday filing with the Securities and Exchange Commission, WhiteFiber's subsidiary, Enovum Data Centers Corp., inked a 10-year agreement with Nscale Global Holdings covering the first 40 megawatts of critical IT load at its NC-1 campus in Madison, North Carolina.

Here's where it gets interesting: the contract represents roughly $865 million in revenue over its term, excluding passthrough expenses like electricity. That figure includes 3% annual escalators and installation services, giving WhiteFiber a nice predictable revenue stream with built-in inflation protection.

What You're Actually Getting

The company disclosed Thursday that the facility is Tier 3-equivalent, which means serious reliability. We're talking about capacity for up to 150 kilowatts per cabinet, fully redundant power distribution, N+1 cooling redundancy, and a targeted Power Usage Effectiveness of 1.3 or better. Translation: this setup can handle dense, power-hungry equipment without breaking a sweat.

The revenue timing is split into two phases. Billing for the first 20 MW kicks off April 30, with the second 20 MW phase beginning May 30, 2026.

Management Weighs In

Sam Tabar, CEO of WhiteFiber, emphasized the company's selective approach to partnerships. "We have taken a prudent and cautious approach to client selection," Tabar said. "We took our time, reviewing multiple offers before selecting Nscale, a partner with a proven track record of hyperscaler deployments."

The Stock's Rocky Road

Despite Friday's pre-market pop, WhiteFiber has had a rough month. The New York-based AI infrastructure company's stock has tumbled 17.86% over the past 30 days and currently shows a Relative Strength Index of 31.25, which typically suggests oversold conditions.

On Tuesday, Compass Point initiated coverage of WhiteFiber, which went public back in August, with a "Buy" rating and a $32 price target. That's more than double where the stock closed regular trading Thursday.

The company currently carries a market capitalization of $547.12 million. Its stock has bounced around between a 52-week high of $40.75 and a low of $13.91. At its current level, the stock sits at roughly 1.45% of its 52-week range, meaning it's hovering close to those lows. That positioning could represent either a bargain or a value trap, depending on whether the Nscale deal signals a turnaround or is just a bright spot in an otherwise challenging story.

Price Action: According to market data, WYFI stock closed regular trading hours Thursday up 0.92% at $14.30.