Bit Digital Originates Strategic Financing Facility Supporting WhiteFiber Growth Initiatives

Bit Digital (Nasdaq: BTBT) originated and is lending under a $100 million delayed draw term loan facility to a WhiteFiber (Nasdaq: WYFI) subsidiary, with potential expansion to $150 million.

Rhea-AI Summary

Bit Digital (Nasdaq: BTBT) originated and is lending under a $100 million delayed draw term loan facility to a WhiteFiber (Nasdaq: WYFI) subsidiary, with potential expansion to $150 million. The financing, backed by an Ethereum-denominated secured credit facility, is intended to support WhiteFiber's AI/HPC growth and enhance Bit Digital's treasury returns beyond traditional ETH staking, subject to comprehensive board and independent committee review.

Positive

• Originated $100 million delayed draw term loan facility, expandable to $150 million
• Financing strategy aims to retain ETH exposure while earning a spread on loan assets
• Loan expected to provide economics above traditional ETH staking yields, per company
• Facility supports growth of majority-owned AI/HPC platform asset WhiteFiber
• Transaction approved after independent committee review and fairness opinions for both boards

Negative

• Term loan facility is concentrated in majority-owned subsidiary WhiteFiber as sole borrower
• Funding advances may rely on drawings from an Ethereum-denominated secured credit facility

Market Context

This announcement details a $100 million delayed draw term loan facility for a WhiteFiber subsidiary...

Analysis

This announcement details a $100 million delayed draw term loan facility for a WhiteFiber subsidiary, expandable to $150 million, funded via Ethereum-backed credit. It reinforces Bit Digital’s strategy of using its ETH balance sheet to seek returns above staking yields while supporting WhiteFiber’s AI/HPC growth. Investors may watch future disclosures for funding draws, loan performance, and how this structure affects Bit Digital’s Ethereum exposure and overall capital allocation.

Key Figures

Term loan facility: $100 million Expandable capacity: $150 million

Term loan facility

$100 million

Delayed draw term loan for WhiteFiber subsidiary

Expandable capacity

$150 million

Maximum size of delayed draw facility upon mutual agreement

Previous Crypto Reports

5 past events · Latest: Apr 07

Same Type 5 events

1. Apr 07

   ETH treasury update

   24h Move

   -3.7%

   Reported March 2026 ETH holdings, staking levels, and WYFI share position.

2. Mar 05

   ETH metrics update

   24h Move

   -7.5%

   Released February 2026 ETH treasury, staking rewards, and WYFI valuation data.

3. Feb 06

   ETH metrics update

   24h Move

   +19.6%

   Outlined January 2026 ETH holdings, strong staking activity, and WYFI valuation.

4. Jan 29

   Strategic letter

   24h Move

   -2.3%

   Annual shareholder letter on Ethereum focus, WhiteFiber priority, and note offering.

5. Jan 28

   WhiteFiber commitment

   24h Move

   -2.3%

   Reaffirmed long-term WhiteFiber investment and intention not to sell WYFI in 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

delayed draw term loan facility, secured credit facility, treasury strategy, fairness opinion, +1 more

5 terms

delayed draw term loan facility financial

"originated and served as a lender for a $100 million delayed draw term loan facility"

A delayed draw term loan facility is a committed loan that a borrower can tap in one or more installments at specified future times after meeting agreed conditions, rather than receiving the full amount upfront. For investors it matters because it provides a ready source of cash that can change a company’s financial strength, leverage and interest costs when drawn—similar to having a reserved credit line you can use later, which affects liquidity and the risk profile of the business.

secured credit facility financial

"through drawings against an Ethereum-denominated secured credit facility"

A secured credit facility is a loan arrangement where a lender provides money to a company in exchange for a legal claim on specific assets (collateral) that can be seized if the borrower fails to repay. It matters to investors because secured debt is cheaper and safer for lenders, which can lower a company’s borrowing cost, but it also puts pledged assets off-limits to shareholders and can affect recovery outcomes and financial flexibility if the company faces trouble—think of it as a mortgage on parts of the business.

treasury strategy financial

"represents a differentiated treasury strategy utilizing Ethereum-backed financing"

A treasury strategy is a plan that organizations use to manage their money, investments, and financial risks to ensure they have enough funds when needed. It helps them make smart decisions about saving, spending, and borrowing, much like a household planning a budget to meet both everyday expenses and future goals. For investors, a well-crafted treasury strategy indicates financial stability and effective management of resources.

fairness opinion financial

"has received the written fairness opinion of Needham and Company LLC"

A fairness opinion is a professional assessment that evaluates whether the terms of a financial deal, such as a merger or acquisition, are fair from a financial point of view. It helps investors and stakeholders understand if the deal is reasonable and balanced, much like an independent expert giving an unbiased judgment on whether a price or agreement is fair. This assurance can increase confidence that the transaction is fair for all parties involved.

form 8-k regulatory

"available in the Company's Current Report on Form 8-K filed"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, May 27, 2026 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a publicly-listed Strategic Asset Company focused on Ethereum strategies, AI/HPC Infrastructure, and strategic acquisitions, today announced that it has originated and served as a lender for a $100 million delayed draw term loan facility for a subsidiary of WhiteFiber, Inc. (Nasdaq: WYFI) ("WhiteFiber" or "WYFI") as borrower. B. Riley Securities, Inc. purchased a portion of the term loans under the facility from Bit Digital Capital, Inc. The facility is designed to support WYFI's near-term growth initiatives. WYFI is a leading provider of AI infrastructure and high-performance computing solutions in which Bit Digital holds a majority ownership interest.

The facility provides WhiteFiber with access to up to $100 million in delayed draw financing with the ability to expand to $150 million upon mutual agreement of the parties.

Bit Digital expects to fund advances in whole or in part through drawings against an Ethereum-denominated secured credit facility, allowing the Company to retain ETH exposure, while earning an attractive financing spread on the term loan asset. The Company believes the structure represents a differentiated treasury strategy utilizing Ethereum-backed financing to pursue enhanced risk-adjusted returns beyond traditional staking activities.

The facility is intended to advance Bit Digital's capital allocation strategy as a Strategic Asset Company platform by pursuing attractive risk-adjusted returns while supporting the growth of strategic assets within its platform. In this case, the facility is expected to provide Bit Digital with economics that significantly exceed traditional ETH staking yields, while also supporting WhiteFiber's long-term value creation that benefit Bit Digital shareholders through its equity investment in WYFI.

The transaction was approved by the Company's Board pursuant to a comprehensive governance process, including review by an independent committee of disinterested directors considering the economics, structure, strategic rationale, shareholder alignment, and overall risk profile. Each of the Board of Directors of Bit Digital and WhiteFiber has received the written fairness opinion of Needham and Company LLC and Seaport Global Securities, LLC, respectively.

"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," said Bit Digital CEO Sam Tabar. "We believe the structure appropriately balances execution, governance considerations, shareholder alignment, and long-term strategic value creation, reflecting our unique and complementary business strategy mix."

Additional information regarding the transaction is available in the Company's Current Report on  Form 8-K filed with the Securities and Exchange Commission.

About Bit Digital

Bit Digital, Inc. (Nasdaq: BTBT) is a publicly-listed Strategic Asset Company. The Company operates across three core verticals: a disciplined ETH accumulation program focused on long-term NAV per share growth, an AI/HPC infrastructure business through its subsidiary WhiteFiber, Inc. (Nasdaq: WYFI), and strategic acquisitions. Bit Digital is headquartered in New York, New York. For additional information, please contact ir@bit-digital.com or follow us on LinkedIn or X.

Investor Notice

Investing in our securities involves risks worth considering before making an investment decision. All current and potential investors are advised to regularly review the risks, uncertainties and forward-looking statements described under "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 (Annual Report) and any subsequently filed quarterly reports on Form 10-Q and any Current Reports on Form 8-K.  If any material risks were to occur – including those not presently known to us or currently deemed immaterial – our business operations may be impaired, and our financial condition or operating results would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Safe Harbor Statement" below.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

 

 

 

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SOURCE Bit Digital, Inc.

FAQ

What financing facility did Bit Digital (BTBT) announce for WhiteFiber (WYFI) on May 27, 2026?

Bit Digital announced originating a $100 million delayed draw term loan facility for a WhiteFiber subsidiary. According to Bit Digital, the facility supports WhiteFiber's near-term growth initiatives in AI infrastructure and high-performance computing and can expand to $150 million upon mutual agreement.

How does Bit Digital plan to fund the new $100 million WhiteFiber loan facility?

Bit Digital expects to fund advances through drawings against an Ethereum-denominated secured credit facility. According to Bit Digital, this approach retains ETH exposure while generating a financing spread on the term loan asset as part of its broader treasury strategy.

What strategic benefits does the WhiteFiber loan facility provide to Bit Digital (BTBT) shareholders?

The facility is intended to deliver risk-adjusted returns above traditional ETH staking yields, according to Bit Digital. It also aims to support WhiteFiber's long-term value creation, which may benefit Bit Digital shareholders through its majority equity ownership in WYFI.

Can the Bit Digital–WhiteFiber term loan facility increase beyond $100 million?

Yes. The delayed draw term loan facility provides up to $100 million initially, with potential expansion to $150 million. According to Bit Digital, any increase would occur upon mutual agreement of the relevant parties under the financing arrangement.

How was governance and fairness addressed in Bit Digital's loan transaction with WhiteFiber?

The transaction was approved following review by an independent committee of disinterested directors. According to Bit Digital, both Bit Digital and WhiteFiber boards received written fairness opinions from Needham and Company and Seaport Global Securities, respectively.

How does the WhiteFiber financing align with Bit Digital's Ethereum and AI/HPC strategy?

Bit Digital describes the facility as part of a differentiated treasury strategy using Ethereum-backed financing. It is intended to support its AI infrastructure thesis via WhiteFiber while pursuing attractive risk-adjusted economics that the company believes exceed traditional ETH staking activities.