Bit Digital said it originated and served as lender for a $100 million delayed draw term loan facility for a subsidiary of WhiteFiber, its majority-owned AI infrastructure and high-performance computing business.
The facility can be expanded to $150 million if both parties agree, giving WhiteFiber access to as much as 50% more capital than the initial commitment. Bit Digital said it expects to fund the advances in whole or in part through drawings on an ethereum-denominated secured credit facility, a structure it says lets it keep ETH exposure while earning a financing spread on the loan asset.
The transaction is aimed at WhiteFiber’s near-term growth initiatives. Bit Digital said the financing is intended to produce economics that “significantly exceed” traditional ETH staking yields while also supporting WhiteFiber’s longer-term value creation.
The deal was approved by Bit Digital’s board after review by an independent committee of disinterested directors. Bit Digital said both its board and WhiteFiber’s board received fairness opinions from Needham and Company and Seaport Global Securities, respectively.
Bit Digital CEO Sam Tabar said the transaction supports the company’s AI infrastructure investment thesis through WhiteFiber while also improving treasury economics. Following these announcements, the company's shares moved 1.26%, and are now trading at a price of $2.015. For the full picture, make sure to review Bit Digital, Inc's 8-K report.
