WhiteFiber Short Interest Soars to 38.0%
Welcome to this week's installment of "The Short Interest Report" - The Fly's weekly recap of short interest trends among some of the most widely followed high-short-float stocks. Using the data from our partner, which utilizes the latest information from stock lenders to estimate short interest changes for thousands of publicly traded companies, this report will screen for some of biggest changes in short interest as a percentage of free float and days-to-cover ratios while also considering the short interest data on some of the more volatile and heavier-traded names of the week. Based on the availability of data from Ortex, the report tracks the trading period that covers prior Friday through Thursday of this week, excluding holidays. As a basis of comparison for stocks discussed below, the S&P 500 index was down 0.8%, the Nasdaq Composite was down 1.3%, the Russell 2000 index was down 0.7%, the Russell 2000 Growth ETFwas down 1.1% and the Russell 2000 Value ETFwas down 0.1% in the five-day trading session range through May 21.SHORT INTEREST GAINERSOrtex-reported reported short interest on WhiteFibertroughed around 15% on April 9 - shortly after the stock price hit its lowest level for the year on March 27 following the company's much lower than expected Q4 earnings. Dip-buying in April and then more explosive gains in the stock price in May have driven shares up nearly three times from those March lows, though with the sharp bounce, bearish positions have also resurfaced in droves. This week, short interest as a percentage of free float on WhiteFiber spiked from 24.7% to 38.0% - the largest on record. Days to cover fell from 2.6 to 2.5 amid a bump in trading volume. In the five-day period covered shares were down just 1.5%, however the stock is now up 90% year to date.Ortex-reported short interest on T1 Energyhas been climbing steadily since mid-January, though this week, the rise in bearish positioning has become more pronounced. Short interest as a percentage of free float on T1 rose five percentage points to 31% even as days-to-cover on the name collapsed from 3.0 to 2.4 amid a sharp increase in trading volume. The debate on the company's fundamentals escalated as short seller Fuzzy Panda, calling the company a failed battery SPAC, is alleging that investors have "mistakenly begun confusing T1 as an AI infrastructure play." Afterward, the stock was defended at Roth Capital, where analysts referred to the recent 50% correction in shares through the first week of April as a buying opportunity. The stock was up 52% in the five-day period covered, though Friday's trading saw a 10% downward move on profit taking heading into the weekend.Ortex-reported short interest on PureCycle Technologieshas surged since the company reported its Q1 results on May 6 along with the share price as bears see the spike of over 70% in the stock price as an opportunity rather than a warning. Short interest as a percentage of free float on PureCycle was at 36% pre-earnings but hit a record high of 48% late last week before settling at 46%. The stock has come in about 9% in the five-day period covered, though year-to-date, PureCycle shares are now up 32%.SHORT INTEREST DECLINERSOrtex-reported short interest on Courseraascended from mid-single digits at the start of 2026 to its all-time high of 22.7% on May 12, though in spite of the stock price struggling to find a springboard from its post-earnings 2026 lows on April 24, the bears are bailing. This week, short positioning as a percentage of free float on the name collapsed from 21.2% to 9.6% - the lowest since mid-January. Days to cover also fell from 5.6 to 4.4 as trading activity remained elevated with relatively higher volumes over the course of May. Coursera was up 3% in the five-day period covered through Thursday, but the stock is down 27% year-to-date and down by over 60% from its July 2025 highs.
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- Ethereum Acquisition: On May 11, 2026, Bit Digital acquired 8,568 Ethereum at an average cost of $2,334.25 each for a total investment of $20 million, further solidifying its position among the largest public holders of Ethereum globally.
- Asset Allocation Strategy: This acquisition increases Bit Digital's Ethereum reserves to approximately 158,461.75 ETH, reflecting the company's confidence in Ethereum as a foundational infrastructure for the future digital economy and supporting its commitment to NAV per share growth.
- Market Outlook: CEO Sam Tabar noted that the current Ethereum market appears more like a reset than an ending, indicating the company's intent to continue executing its capital deployment strategy when market conditions align, focusing on Ethereum ecosystem strategies, AI infrastructure, and strategic acquisitions.
- Company Positioning: As a publicly-listed Strategic Asset Company, Bit Digital emphasizes a disciplined Ethereum accumulation program and AI/HPC infrastructure business, aiming to achieve sustained shareholder value growth through strategic investments.
- Strategic Asset Acquisition: Bit Digital has acquired 8,568 Ethereum (ETH) for $20 million at an average cost of $2,334.25, increasing its total holdings to approximately 158,461.75 ETH, which reinforces its position among the largest public holders of Ethereum globally and reflects the company's confidence in Ethereum as foundational infrastructure for the future digital economy.
- Capital Deployment Strategy: CEO Sam Tabar stated that this acquisition not only lowers the average acquisition cost but also supports the commitment to net asset value (NAV) growth per share, indicating the company's decisive execution of its capital deployment strategy when market conditions align, thereby enhancing shareholder value.
- Diversified Business Focus: Bit Digital is focused on Ethereum ecosystem strategies, AI infrastructure, and strategic acquisitions, demonstrating its investment decisions across multiple core areas aimed at achieving long-term growth through a diversified business model.
- Market Outlook: With the Ethereum market appearing to reset, Bit Digital's acquisition actions reflect its optimism about future market potential, which is expected to further enhance the company's competitiveness and market share in the digital asset space.
- Enhanced Financial Flexibility: WhiteFiber has entered into a $100 million delayed draw term loan facility with Bit Digital Capital, with the potential to increase to $150 million upon mutual agreement, significantly boosting the company's financial flexibility to support near-term growth initiatives.
- Clear Use of Proceeds: The loan proceeds are earmarked for general corporate purposes, including the completion of the first phase of an HPC data center in Madison, North Carolina, indicating a strategic focus on expanding its data center and cloud services business.
- Positive Market Reaction: B. Riley Securities has purchased a portion of the loans from Bit Digital Capital, reflecting market confidence in WhiteFiber's financing capabilities, which may further enhance investor sentiment.
- Future Growth Potential: This financing enables WhiteFiber to accelerate its expansion in data centers and cloud services, which is expected to drive long-term revenue growth and enhance the company's competitive position in the market.
- Increased Financial Flexibility: WhiteFiber has entered into a $100 million delayed draw term loan facility with Bit Digital Capital, which can be increased to $150 million, aimed at providing financial flexibility to support the company's growth initiatives in data centers and cloud services.
- Project Advancement Assurance: This loan will help WhiteFiber bridge timing gaps between project initiation and permanent financing, with CEO Sam Tabar stating that the company will continue to pursue non-dilutive permanent financing solutions to ensure timely funding for ongoing business development.
- Infrastructure Development Acceleration: WhiteFiber intends to use the loan proceeds to complete the first phase of its high-performance computing data center in Madison, North Carolina, which is expected to significantly enhance the company's computing capacity and market competitiveness.
- Strategic Focus on AI Infrastructure: The company is committed to building a scalable infrastructure platform to support the demand for next-generation AI workloads, ensuring a strong position in the rapidly evolving AI market.
- Loan for Growth: Bit Digital has originated a delayed draw term loan facility of up to $100 million for WhiteFiber, aimed at supporting its near-term growth initiatives, which will enhance WhiteFiber's market position in AI infrastructure.
- Innovative Financing Structure: The facility allows for an expansion to $150 million upon mutual agreement, with Bit Digital funding through an Ethereum-backed credit facility, expected to yield returns exceeding traditional Ethereum staking, thereby optimizing capital allocation.
- Strategic Asset Company Platform: This transaction aligns with Bit Digital's capital allocation strategy, aiming to enhance overall economic benefits within its portfolio by supporting WhiteFiber's long-term value creation, further solidifying its investment thesis in AI infrastructure.
- Governance and Compliance: The transaction was approved by the company's board through a comprehensive governance process, including independent committee review, ensuring economic rationality and risk management, reflecting Bit Digital's rigorous approach to execution and shareholder alignment.
- Long-Term Agreement: WhiteFiber has signed a five-year agreement to provide AI compute infrastructure for an investment-grade technology customer, with a total contract value exceeding $160 million, expected to commence in July 2026, significantly enhancing the company's position in the high-end technology market.
- Project Financing Arrangement: The company has also entered into a binding term sheet for project-level financing expected to close in June 2026, which will provide necessary funding support for the project, thereby ensuring smooth implementation and reducing financial risk.
- Positive Market Reaction: WhiteFiber's stock jumped after BTIG initiated coverage with a Buy rating, reflecting market confidence in its future growth potential, especially against the backdrop of increasing demand for AI computing.
- Financial Performance Review: Although WhiteFiber reported a GAAP EPS of -$0.31 in Q4 2025, missing expectations by $0.02, its revenue of $21.92 million beat estimates by $0.67 million, indicating strong potential for revenue growth.










