Bit Digital is extending a $100 million delayed-draw term loan facility to a subsidiary of WhiteFiber, its majority-owned AI infrastructure and high-performance computing company. The facility is designed to support WhiteFiber's near-term expansion in high-performance computing and AI infrastructure, and can be increased to $150 million if both sides agree. The transaction reflects Bit Digital's strategic pivot after fully exiting bitcoin mining operations it had run since 2020, now focusing on Ethereum exposure and AI infrastructure through WhiteFiber. Advances under the facility may be funded in whole or in part through drawings against an Ethereum-denominated secured credit facility, allowing Bit Digital to retain exposure to ETH while earning a financing spread on the loan asset.
Loan Structure and Ethereum Integration
Bit Digital said advances under the WhiteFiber facility may be funded in whole or in part through drawings against an Ethereum-denominated secured credit facility. The structure allows Bit Digital to retain exposure to ETH while earning a financing spread on the loan asset. Bit Digital CEO Sam Tabar stated: "This transaction reflects a disciplined and differentiated capital allocation approach that further supports our existing AI Infrastructure investment thesis, as expressed through our holdings of WhiteFiber, while pursuing attractive risk-adjusted economics for our treasury that we believe exceed traditional ETH staking yields." The company framed the arrangement as a capital allocation decision rather than a simple funding transfer, comparing the secured loan asset returns with traditional Ethereum staking yields.
Post-Mining Strategic Shift
The WhiteFiber facility follows Bit Digital's decision to wind down bitcoin mining, a business it had operated since 2020. In a shareholder letter in January, Tabar said mining "became a less efficient use of capital" compared with opportunities offering active participation and yield generation. Bit Digital entered mining in 2020 but has since fully exited the segment, shifting its focus toward Ethereum exposure and AI infrastructure through WhiteFiber. The company has consolidated its digital asset exposure into Ethereum and prioritized its AI infrastructure stake, making the WhiteFiber loan both a financing decision and a test of its new business direction. Delayed-draw structures give borrowers flexibility to access funds as needed.
Financial Performance and Market Response
Bit Digital reported $27.9 million in total revenue for Q1 2026, down 13.6% from Q4 2025. The company posted a net loss of $146.7 million in the quarter, compared with a $185.3 million net loss in the prior quarter. Shares of Bit Digital closed at $2.03 on Wednesday, up 2.01% for the session. The company's new model combines Ethereum exposure, secured lending, and majority ownership of a high-performance computing platform.
