TL;DR:
- Bit Digital granted a $100 million credit score line to a WhiteFiber subsidiary to finance its growth in AI infrastructure.
- The funds shall be channeled via an Ethereum-denominated credit score line, permitting the corporate to keep up its publicity to the asset.
- The credit score will be expanded as much as $150 million and generates a yield that, based on the corporate, exceeds conventional ETH staking.
Bit Digital introduced the supply of a delayed-draw time period mortgage facility of $100 million directed to a subsidiary of WhiteFiber, Inc., an synthetic intelligence and high-performance computing infrastructure firm through which Bit Digital holds a majority stake. B. Riley Securities acquired a portion of the loans inside the facility.
The construction contemplates the opportunity of increasing the quantity as much as $150 million by mutual settlement between the events. In keeping with the official assertion, disbursements shall be funded fully or partially via attracts in opposition to a secured Ethereum-denominated credit score line, a mechanism that permits the corporate to retain publicity to the asset whereas producing a financing unfold over the mortgage.
Bit Digital CEO Sam Tabar said that the transaction is the results of “a disciplined and differentiated capital allocation strategy” that helps the corporate’s AI infrastructure funding thesis, pursuing risk-adjusted returns that, as he affirmed, exceed conventional ETH staking yields.
Bit Digital: Transitioning From Bitcoin Mining to AI Infrastructure
The initiative is a part of the strategic reorientation that Bit Digital has been executing since early 2026, when it introduced the full cessation of its bitcoin mining operations, an exercise it had begun in 2020. Tabar defined in a letter to shareholders that mining “grew to become a much less environment friendly use of capital” in comparison with different options with energetic participation and yield era. The corporate strengthened its Ethereum publicity and deepened its dedication to WhiteFiber as a central strategic asset.
Within the first quarter of 2026, Bit Digital reported whole revenues of $27.9 million, a 13.6% decline in comparison with the fourth quarter of 2025. The web loss was $146.7 million, decrease than the $185.3 million recorded within the earlier quarter. The corporate’s shares closed on Wednesday, Could 28, at $2.03, with a acquire of 2.01% on the day.
The transaction obtained approval from Bit Digital’s board of administrators following a governance course of that included the overview by an impartial committee of administrators and equity opinions from Needham and Firm LLC and Seaport World Securities, LLC.
