Bit Digital extends $100M loan facility to WhiteFiber backed by Ethereum credit line
Bit Digital is doing something clever with its Ethereum stash. The Nasdaq-listed company announced a $100 million delayed-draw term loan facility to a subsidiary of WhiteFiber, with the option to expand the commitment to $150 million. The twist: Bit Digital is funding portions of that loan through an Ethereum-denominated secured credit facility, meaning it gets to keep its $ETH exposure while earning a financing spread that beats traditional staking yields.
The deal, originated on May 27, 2026, essentially turns Bit Digital into a crypto-native lending intermediary. It borrows against its Ethereum at one rate, lends to WhiteFiber at a higher rate, and pockets the difference.
How the numbers stack up
The loan to WhiteFiber carries a 9.5% annual interest rate, with a step-down to 8% once WhiteFiber hits certain Phase I completion and leasing milestones at its NC-1 data center facility in North Carolina. There’s also a 3% original issue discount and a 1.1x minimum multiple-on-invested-capital repayment baked into the terms.
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On the funding side, Bit Digital pulled an initial $50 million draw from Galaxy Digital at 5.45% on a one-year renewable term, dated May 20. That’s the Ethereum-backed credit line in action. Simple math: borrow at 5.45%, lend at 9.5%, and the gross spread lands somewhere around 400 basis points before expenses.
B. Riley Securities also purchased a $20 million slice of the WhiteFiber loans on matching terms, adding an institutional co-investor to the deal. The transaction received board approval along with fairness opinions from independent advisors Needham & Company and Seaport Global Securities.
From Bitcoin miner to $ETH-powered lender
Bit Digital’s evolution has been striking. The company started life as a Bitcoin mining operation. Now it’s managing an $ETH treasury strategy and holding a roughly 70% equity stake in WhiteFiber through approximately 27 million shares.
WhiteFiber, which trades on Nasdaq under the ticker WYFI, went public in August 2025. The company operates in the data center and cloud services space, targeting the infrastructure buildout that AI workloads demand. WhiteFiber previously secured C$60 million from the Royal Bank of Canada in June 2025 for a tier-3 AI data center buildout, so the company has been assembling capital from multiple sources to fuel its expansion.
What this means for investors
For Bit Digital shareholders, the calculus is layered. They get continued $ETH price exposure through the company’s holdings, a financing spread on the WhiteFiber loan that management expects to exceed staking yields, and indirect exposure to AI infrastructure growth through the WhiteFiber equity stake.
The risks are equally layered. $ETH price declines could trigger margin calls or collateral requirements on the Galaxy Digital credit facility. WhiteFiber’s data center buildout could face delays, cost overruns, or weaker-than-expected leasing demand. And the one-year renewable term on the Galaxy borrowing means Bit Digital faces refinancing risk if credit conditions tighten or $ETH volatility spikes at the wrong moment.
There’s also a concentration question worth watching. Bit Digital holds around 70% of WhiteFiber’s equity while simultaneously serving as its largest creditor through this facility. If WhiteFiber stumbles, Bit Digital takes the hit on both the debt and equity sides.