Shares of WhiteFiber slid after the company disclosed plans to sell $250 million of debt to buy back existing securities and pay for its data center buildout.

The stock lost 21% of its value, falling to $21.37 a share in after-hours market trading Tuesday. That extended an 11% decline during the market session that led to the shares closing at $27.07. Despite its declines, the stock is still up 71% this year.

WhiteFiber said it will sell $250 million of convertible senior notes due in 2032 in a private placement. The provider of artificial intelligence infrastructure and high-performance computing solutions will give buyers the option to purchase up to an additional $37.5 million of notes as well.

At the same time as the sale, WhiteFiber expects to enter into negotiations with the holders of the company's notes due in 2031 with the goal of exchanging them for cash and ordinary shares, the company said.

Proceeds from the sale will also be used for data center expansion, including to partially fund the lease or purchase of additional property, construct facilities, and purchase related equipment, the company said.