WhiteFiber, Inc. Announces C$60 Million Credit Facility with Royal Bank of Canada for Data Centers
Rhea-AI Summary
WhiteFiber Inc., a wholly-owned HPC subsidiary of Bit Digital (NASDAQ: BTBT), has secured a landmark C$60 million credit facility from the Royal Bank of Canada for its data centers business. The financing agreement includes a real estate term loan, equipment financing, and a revolving facility, carrying interest rates of CORRA plus 250 bps with a 3-year term.
The non-recourse credit agreement involves ENOVUM Data Centers Corp. and its Montreal II project as borrowers and guarantors. The proceeds will support the expansion of WhiteFiber's Tier-3 AI data center portfolio. CEO Sam Tabar highlighted this as a breakthrough achievement, noting it as the first financing of its kind in the HPC Cloud and data centers sector.
Positive
- Secured substantial C$60 million credit facility from Canada's largest bank
- Non-dilutive financing structure preserving shareholder value
- First company in HPC Cloud and data centers sector to secure this type of financing
- Demonstrates strong business model validation from major financial institution
- Enables expansion of Tier-3 AI data center portfolio to meet growing demand
Negative
- Additional debt burden with interest rate of CORRA plus 250 bps
- Limited to 3-year term requiring potential refinancing in 2028
- Execution risks associated with data center buildout and expansion
News Market Reaction – BTBT
In the trading session that priced this news, BTBT gained 5.17%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The credit agreement, among RBC and ENOVUM Data Centers Corp. and its Montreal II project as borrowers and guarantors, is non-recourse to WhiteFiber or Bit Digital. It encompasses a real estate term loan, equipment financing, and a revolving facility. The facilities carry interest rates of CORRA plus 250 bps and a 3-year term.
"This financing is a breakthrough for WhiteFiber and our sector," said CEO Sam Tabar. "No other company operating at the intersection of HPC Cloud and data centers has secured financing of this nature, to our knowledge. We believe that this is a strong endorsement of our business model, the quality of our assets, balance sheet, and ability to execute."
"It also reflects our ongoing efforts to unlock non-dilutive capital and scale data center infrastructure to meet growing demand for AI compute. We're grateful to RBC for their support and partnership as we continue advancing our strategic priorities."
The credit agreement includes customary terms and conditions. Additional details will be available in a Current Report on Form 8-K to be filed with the
Investor Notice
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider 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, 2024 (Annual Report) and any subsequently filed quarterly reports on Form 10-Q and any Current Reports on Form 8-K. If any material risk was to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. 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.