Bit Digital Lends $100M to WhiteFiber Backed by Ethereum

Bit Digital on Wednesday extended a $100 million delayed‑draw term loan facility to a subsidiary of WhiteFiber, a New York‑based AI infrastructure and high‑performance computing provider. The facility can be expanded to $150 million by mutual agreement and advances are tied to an Ethereum‑denominated secured credit line.

The loan is intended to fund WhiteFiber’s near‑term capacity additions and AI and high‑performance computing projects. Bit Digital expects advances under the facility to be funded in whole or in part through drawings against the ETH‑denominated secured credit facility, allowing the company to keep Ethereum exposure on its balance sheet while earning a financing spread on the loan asset.

Under the delayed‑draw structure, WhiteFiber may take draws at agreed future dates instead of receiving the full amount up front. The optional increase to $150 million provides additional flexibility if both parties agree to scale planned compute and network builds.

Bit Digital exited its bitcoin mining business earlier this year. In January, the company announced plans to wind down mining operations, saying the activity had “become a less efficient use of capital” compared with opportunities offering active participation and yield generation. Following that decision, Bit Digital consolidated its digital asset exposure into Ethereum and emphasized its majority ownership stake in WhiteFiber.

For the first quarter of 2026, Bit Digital reported $27.9 million in total revenue, a 13.6% decline from the fourth quarter of 2025. The company posted a net loss of $146.7 million for Q1, compared with a $185.3 million net loss in the prior quarter. Shares closed at $2.03 on Wednesday, up 2.01% for the session.

Sam Tabar, Bit Digital’s chief executive, called the transaction “a disciplined and differentiated capital allocation approach that further supports our existing AI Infrastructure investment thesis…while pursuing attractive risk‑adjusted economics for our treasury that we believe exceed traditional ETH staking yields.”

WhiteFiber provides high‑performance compute and specialized networking for customers that require large pools of compute for AI training and research. Bit Digital did not provide further operational details about specific WhiteFiber projects or timelines for draws under the facility.

The extension of credit follows Bit Digital’s strategic shift away from asset‑intensive bitcoin mining toward investments and financing arrangements tied to Ethereum and AI infrastructure.