Modal raised $750 million at a $15.75 billion valuation; its GPU landlord WhiteFiber closed at $13.01
Modal, a serverless AI cloud that owns no data centers, raised $750 million this week at 3.4 times its May valuation. WhiteFiber, the listed landlord that supplies its GPUs, carries about $1.0 billion of contracted work and closed at $13.01.
Vincent Jiang · 3 min read
The tenant that owns nothing
Modal$87M — Modal, private, latest valuation $87M, founded by Erik Bernhardsson and Akshat Bubna, runs a serverless platform: customers upload code and rent graphics processors without managing any machines 13. This week it raised a $750 million Series D led by the venture firm Accel at a $15.75 billion post-money valuation 12. That is 3.4 times the $4.65 billion of its May Series C and more than 14 times its $1.1 billion Series B of September 2025 12.
Usage has tripled since May and growth is above 15 times year over year, both chief-executive figures 13. Annualized run-rate revenue, current revenue projected forward a year rather than audited sales, has passed $1 billion 13. Modal owns no data centers. It is the orchestration layer, software that splits computing work across other people's machines, pooling capacity from 13 cloud partners including WhiteFiber−9.15% — WhiteFiber, down 9.15 percent today 1.
Modal's private mark climbed from $1.1 billion to $15.75 billion in 13 months
Data
| Value | |
|---|---|
| Series B, Sep 2025 | $1.1bn |
| Series C, May 2026 | $4.65bn |
| Series D, Oct 2026 | $15.75bn |
The landlord that carries the debt
WhiteFiber, the GPU cloud and colocation operator founded in 2024 by bitcoin miner Bit Digital−9.28% — Bit Digital, down 9.28 percent today, sits at the other end of that trade 1. Colocation is renting powered, cooled space for customers' own machines, and WhiteFiber sells that alongside time on its own GPUs 4. Its trailing net sales were $79.2 million 5, against a tenant reporting $1 billion of run-rate revenue 1. On October 16 its Nasdaq shares closed at $13.01; its thinly traded secondary Frankfurt listing fell 17.86 percent on the week and 28.57 percent this month 5. Its $310 million of convertible notes due 2032 convert at $33.84, 2.6 times the current price 6.
WhiteFiber trades at a third of its June close, far below its convert price
Data
| Value | |
|---|---|
| 30 Jun Nasdaq close | $38.85 |
| 2032 notes conversion price | $33.84 |
| 16 Oct Nasdaq close | $13.01 |
A billion-dollar backlog that lands slowly
Remaining performance obligations, contracted revenue not yet recognized, stood near $1.0 billion on June 30 4. Of that, $57.7 million is expected in the rest of 2026, $136.7 million in 2027 and $105.1 million in 2028, the remainder thereafter 4. Bit Digital, which consolidates WhiteFiber's results, posted second-quarter revenue of $32.1 million, up 15 percent from the prior quarter 4. Since its previous call WhiteFiber signed more than $540 million of new multi-year cloud agreements, pointing to more than $200 million of annualized cloud revenue once fully deployed 4.
Seven-tenths of WhiteFiber's $1.0 billion backlog lands after 2028
Data
| Expected recognition, $m | |
|---|---|
| Rest of 2026 | $57.7m |
| 2027 | $136.7m |
| 2028 | $105.1m |
| After 2028 | $700.5m |
The holder took the haircut
Bit Digital's 27,043,750 WhiteFiber shares were worth about $1.05 billion at the $38.85 Nasdaq close on June 30; at $13.01 they are worth about $352 million, barely above the parent's own $336.2 million of convertible notes 4. "Our operating results improved through the quarter," chief executive Sam Tabar said. "Our valuation did not." The board is evaluating its options 4. H.C. Wainwright and Jones opened coverage at Buy in September, both third-party opinions 8. Three tests are dated. The third-quarter reports, whose dates are unconfirmed, must show the backlog turning into revenue 7. NC-1, WhiteFiber's new data-center campus, was expected to reach full billing across its 40 megawatts of contracted load in August 4. Long-term leases covering more than 100 megawatts of 2027 capacity are targeted before the year ends 6. The revenue line in those reports is the only figure that can reprice the stock and the stake at once.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
