Bit Digital extends a loan of $100 million to WhiteFiber, as part of its strategy for integrating its AI Infrastructure business with Ethereum Treasury.
You can read more about it here:
- Bit Digital created a 100 million dollar loan facility in support of WhiteFiber’s AI Infrastructure growth plans.
- The amount could rise up to $150,000,000 if Bit Digital, WhiteFiber and other parties reach a mutually agreed agreement.
- Bit Digital can retain its ETH exposure and still seek returns that go beyond the traditional stake yields.
WhiteFiber said that the term loan with delayed draw will help WhiteFiber to achieve its near-term goals in AI and high-performance computing infrastructure. Bit Digital can also use Ethereum-backed funding while retaining ETH exposure.
Bit Digital invests in WhiteFiber’s AI development
Bit Digital announced It has announced that it originated a term loan of $100 million with a delayed draw facility for WhiteFiber. WhiteFiber is the major AI infrastructure business and high-performance computer division of the company.
If both parties are in agreement, the loan could be increased to $150,000,000. B. Riley Securities acquired a part of Bit Digital Capital’s term loan portfolio, Bit Digital Capital being a 100% owned Bit Digital unit.
WhiteFiber will be able to use the new facility in order to achieve its growth goals. WhiteFiber says the money will help it fund short-term projects as well as continue to develop their AI and high performance computing platform.
The funding plan is shaped by the Ethereum credit line
Bit Digital stated that advances made under the facility could be funded entirely or partially through an Ethereum secured credit facility. This structure allows Bit Digital to maintain ETH exposure and earn a spread financing on loan assets.
Bit Digital has taken another step to move away from Bitcoin and towards treasury-linked Ethereum activity. It has built its strategy on ETH holdings and staking. The AI infrastructure is also a key part of the company’s plan.
“This transaction reflects a disciplined and differentiated capital allocation approach that further supports our existing AI Infrastructure investment thesis,” Sam Tabar is the Chief Executive of Sam Tabar.
Bit Digital’s CEO said that the company was looking for economics, which it believed would be better than traditional ETH staking.
It also stated that the deal had passed through a review by its board. The company added that fairness opinions and independent committees were included in the evaluation of deal structure, economics, as well as shareholder alignment.
A mining deal with context
Bit Digital has closed its Bitcoin-mining business. The company claimed earlier this year mining was no longer a good use of money compared to areas like infrastructure development and Ethereum yield.
As before reported By crypto.news Bit Digital reported a loss of 146.7 million dollars in the 1st quarter 2026. It also continued to reduce its Bitcoin-mining exposure. At the end of march, Bit Digital held 154 444 ETH and stated that future capital investments would be focused on Ethereum infrastructure and operations.
Bit Digital was also covered in separate coverage. expanded It will increase its Ethereum holdings by 2025, after purchasing 31,057 Ethereum with proceeds of a convertible note offering worth $150 million. This brought the total number of ETH held by its company to 150,244 at that time.
WhiteFiber is now the link between these two businesses. This allows Bit Digital to use Ethereum-backed credit in its Treasury Plan while supporting its AI Infrastructure stake.
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Source: crypto.news
