Bit Digital announced it has originated a $100 million delayed-draw term loan facility for a subsidiary of WhiteFiber, expanding financing options for the AI infrastructure company and supporting Bit Digital’s broader capital allocation strategy.
Under the agreement, WhiteFiber will have access to up to $100 million in delayed-draw financing, with the potential to increase the facility to $150 million by mutual agreement between the parties. Bit Digital maintains a majority ownership stake in WhiteFiber, which provides AI infrastructure and high-performance computing solutions.
As part of the transaction, B. Riley Securities purchased a portion of the term loans from Bit Digital Capital, a subsidiary of Bit Digital.
Bit Digital said it expects to fund advances through drawings on an Ethereum-denominated secured credit facility. The company noted that this approach allows it to maintain exposure to Ethereum while generating a financing spread on the loan asset, aligning with its treasury management strategy centered on Ethereum-backed financing.
The transaction was approved by Bit Digital’s Board of Directors following a review by an independent committee of disinterested directors. Both Bit Digital and WhiteFiber also obtained written fairness opinions from Needham & Company and Seaport Global Securities, respectively.
Bit Digital said the financing aligns with its long-term focus on AI infrastructure investments through WhiteFiber. The company currently operates across three primary business segments: an Ethereum accumulation strategy, AI and high-performance computing infrastructure through WhiteFiber, and strategic acquisition opportunities.
Additional details regarding the transaction were disclosed in a Form 8-K filing submitted to the U.S. Securities and Exchange Commission.
KEY QUOTE:
“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.”
Sam Tabar, CEO, Bit Digital
