Bit Digital announced on Wednesday that it is originating a $100 million delayed-draw term loan facility for a subsidiary of WhiteFiber, its majority-owned AI infrastructure and high-performance computing provider. The facility may be increased to $150 million by mutual agreement.
The funding is intended to support WhiteFiber's near-term growth in HPC and AI. Crucially, drawing on the loan will be funded through an Ethereum-denominated secured credit facility, allowing Bit Digital to maintain ETH exposure while earning a financing spread. CEO Sam Tabar described the move as a “disciplined and differentiated capital allocation approach” that seeks risk-adjusted returns exceeding traditional ETH staking yields.
The deal follows Bit Digital’s complete exit from Bitcoin mining earlier this year, after deeming it less efficient than Ethereum-focused treasury management and AI infrastructure. The company held approximately 154,444 ETH at the end of March 2026. In Q1 2026, Bit Digital reported $27.9 million in total revenue and a net loss of $146.7 million. The transaction underwent an independent board review and fairness opinions. B. Riley Securities purchased part of the term loans from Bit Digital Capital. Shares closed at $2.03, up 2% on Wednesday.
