Bit Digital issues $100 million Ethereum‑backed loan to WhiteFiber for AI infrastructure

Bit Digital announced a delayed‑draw term loan facility of $100 million, expandable to $150 million, to a subsidiary of WhiteFiber. The loan is collateralised with Ethereum (ETH) and carries an initial annual interest rate of 9.5%, which can fall to 8% if the borrower achieves at least 80% lease‑up of its new data‑center capacity.

The financing is intended to support WhiteFiber’s expansion of high‑performance computing and artificial‑intelligence infrastructure, including the construction of enterprise‑grade data centres across the United States. The structure allows Bit Digital to retain its ETH holdings while earning a spread on the loan, reflecting the company’s strategic shift away from Bitcoin‑mining toward leveraging its Ethereum treasury. Investment bank B. Riley Securities participated in the credit round, acquiring a portion of the facility.

The deal exemplifies a growing use of crypto‑backed credit to fund traditional technology projects and aims to enhance Bit Digital’s treasury returns without disposing of its digital assets.