Bit Digital Inc. has secured a $100 million delayed draw term loan facility to accelerate the growth of its artificial intelligence infrastructure operations through WhiteFiber, its majority-owned subsidiary.
Bit Digital secures delayed draw term loan
Bit Digital has arranged a $100 million delayed draw term loan facility to fund expansion at WhiteFiber, its majority-owned artificial intelligence infrastructure subsidiary based in New York.
The facility can be increased to $150 million if both parties agree. Proceeds are earmarked for high-performance computing build-out and broader AI development initiatives at WhiteFiber, including data center expansion.
Ethereum-backed credit line underpins funding
Bit Digital said the loan will be financed in part through an Ethereum-backed secured credit line. That structure allows the company to borrow against its Ether holdings, maintain exposure to the asset, and earn yield on the loan rather than liquidating its digital assets.
The company highlighted the arrangement as a way to add flexibility in capital allocation and secure additional liquidity directly tied to the value of its Ethereum-based holdings.
Strategic shift away from bitcoin mining
The financing comes after Bit Digital’s full exit from the bitcoin mining business earlier this year. The company confirmed in January that it had completed its withdrawal from mining, an activity it began in 2020.
The move capped a multi-year pivot toward Ethereum exposure and AI infrastructure, primarily through WhiteFiber. Management has framed the strategy as a transition from mining economics to infrastructure-driven revenue.
Quarterly results show revenue decline, narrower loss
For the first quarter of 2026, Bit Digital reported revenue of $27.9 million, down 13.6% from the prior quarter.
The company logged a net loss of $146.7 million, an improvement from the $185.3 million loss in the fourth quarter of 2025. The earlier loss was largely driven by non-cash mark-to-market adjustments on digital asset holdings.
Stock edges higher on continued AI and digital asset focus
Bit Digital shares closed Wednesday at $2.03, up 2.01% on the day.
The company said it remains focused on a dual strategy: expanding AI-driven infrastructure operations while maintaining significant digital asset exposure. Management is effectively leveraging one major asset class to fund another, using its Ether holdings—reported at roughly 155,000 ETH—to back credit rather than selling into the market.
Execution at WhiteFiber now in focus
Market attention is likely to center on how efficiently WhiteFiber deploys the new capital. The subsidiary is expanding a high-performance computing data center in North Carolina and recently signed a five-year agreement worth more than $160 million to supply AI compute infrastructure in the Paris region, underscoring growing global demand for its services.
Going forward, Bit Digital’s share performance is expected to be increasingly sensitive to two factors: the execution of its AI infrastructure projects and the price of Ether. The company aims for AI-related operations to provide a more predictable revenue base, while retained digital assets could offer additional upside through balance sheet appreciation.
Want to understand Ethereum’s growing role in institutional strategies like this? Explore our guide on Ethereum and how it works.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
