TL;DR:
- Bit Digital granted a $100 million credit line to a WhiteFiber subsidiary to finance its expansion in AI infrastructure.
- The funds will be channeled through an Ethereum-denominated credit line, allowing the company to maintain its exposure to the asset.
- The credit can be expanded up to $150 million and generates a yield that, according to the company, exceeds traditional ETH staking.
Bit Digital announced the delivery of a delayed-draw term loan facility of $100 million directed to a subsidiary of WhiteFiber, Inc., an artificial intelligence and high-performance computing infrastructure company in which Bit Digital holds a majority stake. B. Riley Securities acquired a portion of the loans within the facility.
The structure contemplates the possibility of expanding the amount up to $150 million by mutual agreement between the parties. According to the official statement, disbursements will be funded entirely or partially through draws against a secured Ethereum-denominated credit line, a mechanism that allows the company to retain exposure to the asset while generating a financing spread over the loan.
Bit Digital CEO Sam Tabar stated that the transaction is the result of “a disciplined and differentiated capital allocation approach” that supports the company’s AI infrastructure investment thesis, pursuing risk-adjusted returns that, as he affirmed, exceed traditional ETH staking yields.
Bit Digital: Transitioning From Bitcoin Mining to AI Infrastructure
The initiative is part of the strategic reorientation that Bit Digital has been executing since early 2026, when it announced the complete cessation of its bitcoin mining operations, an activity it had begun in 2020. Tabar explained in a letter to shareholders that mining “became a less efficient use of capital” compared to other alternatives with active participation and yield generation. The company strengthened its Ethereum exposure and deepened its commitment to WhiteFiber as a central strategic asset.
In the first quarter of 2026, Bit Digital reported total revenues of $27.9 million, a 13.6% decline compared to the fourth quarter of 2025. The net loss was $146.7 million, lower than the $185.3 million recorded in the previous quarter. The company’s shares closed on Wednesday, May 28, at $2.03, with a gain of 2.01% on the day.
The transaction received approval from Bit Digital’s board of directors following a governance process that included the review by an independent committee of directors and fairness opinions from Needham and Company LLC and Seaport Global Securities, LLC.
