Digital asset firm Bit Digital has originated a $100 million delayed-draw term loan facility to accelerate growth initiatives at WhiteFiber, a high-performance computing (HPC) and artificial intelligence infrastructure provider in which Bit Digital holds a majority stake. The financing agreement contains an option to expand the total pool to $150 million upon mutual agreement.
To preserve its balance sheet strategy, Bit Digital plans to fund capital advances under the facility by drawing against an Ethereum-denominated secured credit line. This structured setup allows the public firm to retain full long-term investment exposure to its underlying ETH treasury assets while capturing a profitable financing spread on the newly created loan asset.
According to Bit Digital CEO Sam Tabar, the inter-company transaction delivers risk-adjusted financial returns for the corporate treasury that comfortably outpace standard Ethereum staking yields. The operational pivot comes in the wake of Bit Digital completely winding down its legacy Bitcoin mining operations in January to prioritize high-margin enterprise AI data centers and active proof-of-stake node validation.
WhiteFiber will deploy the fresh liquidity to bridge project capital needs and finalize the initial buildout phase of its high-performance computing data center hub in Madison, North Carolina. Part of the term loan advance has been syndicated to B. Riley Securities, helping optimize Bit Digital’s ongoing capital allocation strategy.
