Bit Digital extended a $100 million ETH-backed loan to WhiteFiber to expand AI infrastructure operations.
Bit Digital announced on May 27 that it is extending a $100 million delayed-draw term loan facility to a subsidiary of WhiteFiber, its majority-owned New York-based AI infrastructure and high-performance computing company. The facility can be expanded to $150 million by mutual agreement and is designed to fund WhiteFiber's near-term expansion across high-performance computing and AI infrastructure.
Bit Digital said it expects loan advances to be funded in whole or in part through drawdowns against an Ethereum (ETH)-denominated secured credit facility. The arrangement allows the company to maintain its ETH exposure while earning a financing spread on the loan asset, rather than liquidating holdings into cash.
"This transaction reflects a disciplined and differentiated capital allocation approach that further supports our existing AI infrastructure investment thesis," said Bit Digital CEO Sam Tabar. He added that the structure is expected to generate returns exceeding traditional ETH staking yields on a risk-adjusted basis.
The deal marks a continuation of Bit Digital's pivot away from Bitcoin mining. In January, the company announced a full wind-down of its mining operations, a business it had entered in 2020. Tabar wrote to shareholders at the time that mining had become "a less efficient use of capital" relative to opportunities offering active yield generation.
Following that exit, Bit Digital consolidated its digital asset exposure into Ethereum and deepened its commitment to WhiteFiber as its primary AI infrastructure investment. The company reported $27.9 million in total revenue for the first quarter of 2026, a 13.6% decline from Q4 2025, alongside a net loss of $146.7 million, an improvement from the $185.3 million net loss posted in the prior quarter.
Shares of Bit Digital closed at $2.03 on Wednesday, up 2.01% on the session. The company's shift from proof-of-work mining to an ETH-backed lending and infrastructure model represents a broad repositioning of its treasury and revenue strategy since late 2025.
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