WhiteFiber Brings NC-1's Full 40 MW Online Under Nscale Contract

WhiteFiber has activated all 40 megawatts at its NC-1 site under a 10-year agreement with Nscale, a contract worth approximately $865 million in contracted revenue. Billing for the first 20 MW began on Aug. 15, 2026, according to the company's disclosure.

Enovum NC-1 Bidco, LLC, a wholly owned WhiteFiber subsidiary, signed the agreement with Nscale in November 2025. The initial service order spans a decade and includes rate escalators and installation services in its total contract value.

The remaining 20 MW reached operational status by the report date. The $865 million figure covers the full service order, while the billing milestone reported applies only to the first half of the capacity.

How does the new capacity affect revenue?

During the third quarter, NC-1's first 20 MW began contributing to colocation revenue, which totaled $5.6 million. Bit Digital, WhiteFiber's parent, separately recorded $18.1 million in Cloud Services revenue in the same period.

The gap between the $5.6 million colocation figure and the contract's headline value reflects timing: billing started mid-August, so the quarter captured only a partial period of the first tranche. The second 20 MW will begin adding to colocation revenue once billing commences on that capacity.

The company's third-quarter results also included figures from its other operations, though the disclosure centered on the NC-1 ramp and the two revenue lines tied to it.

What comes next for capital allocation?

Bit Digital is weighing share repurchases as one option for deploying capital. A repurchase program requires shareholder approval, and the company said it needs a funding plan in place before it seeks that approval.

That sequencing matters for timing. Management cannot approach shareholders until it has settled how it would finance buybacks, which leaves the timeline dependent on internal planning rather than a fixed calendar date.

The Nscale deal anchors WhiteFiber's colocation business for the next decade. With the full 40 MW now online, revenue recognition shifts from a construction and commissioning phase to a steady billing phase, assuming the second tranche follows the first into service without delay. Investor attention now turns to when billing starts on the remaining 20 MW and whether shareholders greenlight a repurchase program once a funding plan exists.