Bit Digital has provided a $100 million delayed-draw term loan to a subsidiary of WhiteFiber, its majority-owned AI infrastructure and high-performance computing business. The facility can be expanded to $150 million by mutual agreement. B. Riley Securities purchased part of the loan from Bit Digital Capital, a wholly owned unit of Bit Digital.
Ethereum-Backed Structure Preserves ETH Exposure
Advances under the facility may be funded partly or fully through an Ethereum-denominated secured credit line. This lets Bit Digital retain its ETH holdings while earning a financing spread on the loan asset — a return the company believes exceeds traditional ETH staking yields. The structure underwent board review, with independent committees and fairness opinions assessing the deal’s economics and shareholder alignment.
CEO on Capital Allocation Strategy
CEO Sam Tabar called the transaction “a disciplined and differentiated capital allocation approach” that supports the existing AI infrastructure investment thesis. He added that Bit Digital is seeking risk-adjusted returns beyond what staking alone provides.
Pivot from Bitcoin Mining to Ethereum and AI
The loan comes after Bit Digital wound down its Bitcoin mining business, citing lower capital efficiency compared to Ethereum yield and infrastructure growth. In Q1 2026, Bit Digital posted a $146.7 million net loss while reducing mining exposure. As of end-March, the company held approximately 154,444 ETH. In 2025, it used proceeds from a $150 million convertible note offering to buy 31,057 ETH, bringing total holdings to 150,244 ETH at the time.
The WhiteFiber loan ties together two strategic lines: Ethereum treasury management and AI infrastructure. It provides a model for using ETH-backed credit to fund physical infrastructure while maintaining upside from token appreciation.