WhiteFiber, Inc. (WYFI) experienced a significant 24-hour plunge of 6.44% during the night session, as investor sentiment turned negative following the release of its majority owner's financial results.

The sharp decline came after Bit Digital, Inc. (BTBT), which holds a majority stake in WhiteFiber, announced its first quarter 2026 financial results. Bit Digital reported a 13.6% decrease in total revenue compared to the previous quarter, driven by lower cloud services, ETH staking, and digital asset mining revenue. The company also reported a net loss attributable to shareholders of $146.7 million and a decrease in cash and cash equivalents from $118.4 million to $79.5 million.

Notably, Bit Digital's convertible notes increased to $334.2 million, driven by the issuance of notes by WhiteFiber, which are consolidated within the financial statements. This increase in debt, combined with the broader negative financial performance of the parent company, likely contributed to the sell-off in WhiteFiber shares, overshadowing an earlier analyst action where BTIG raised its price target on WhiteFiber from $20 to $35.