Bit Digital Funds $100M Loan for WhiteFiber with $150M Expansion Option via ETH Facility
BTBT•Bit Digital originated a $100 million delayed-draw term loan facility for WhiteFiber, with a $100M capacity expandable to $150M, funding advances via an Ethereum-secured credit facility to retain ETH exposure and earn a financing spread. The transaction targets yields above traditional ETH staking and supports AI/HPC growth.
1. $100M Loan Facility Origination
Bit Digital originated a $100 million delayed-draw term loan facility for its AI/HPC subsidiary WhiteFiber with an initial draw capacity of $100M and an option to expand to $150M, positioning the company as lender while B. Riley Securities acquired a portion of the loans.
2. Ethereum-backed Funding Structure
Advances under the facility will be financed through drawings against an Ethereum-denominated secured credit line, allowing Bit Digital to retain ETH exposure and earn a significant financing spread that the company expects to exceed traditional ETH staking yields.
3. Strategic Rationale and Growth Support
The Board approved the transaction following a comprehensive governance process, including independent fairness opinions, as part of Bit Digital’s capital allocation strategy to achieve enhanced risk-adjusted returns and support long-term growth at its majority-owned AI infrastructure business.
