Bit Digital Inc (NASDAQ:BTBT) said it has originated a $100 million delayed draw term loan facility for a subsidiary of WhiteFiber, Inc. (Nasdaq: WYFI), an AI infrastructure firm in which Bit Digital holds a majority ownership interest.
The facility, which can be expanded to $150 million by mutual agreement, is designed to support WhiteFiber’s near-term growth initiatives
B Riley Securities purchased a portion of the term loans from Bit Digital Capital. Bit Digital said it expects to fund advances through drawings against an Ethereum-denominated secured credit facility, a structure the company described as a differentiated treasury strategy that allows it to retain ETH exposure while earning a financing spread on the loan asset. The company said the arrangement is expected to generate returns that significantly exceed traditional Ethereum staking yields, while also supporting WhiteFiber’s long-term value creation for Bit Digital shareholders through its equity stake in the company.
The transaction was approved by Bit Digital’s board following review by an independent committee of disinterested directors. Both Bit Digital and WhiteFiber received written fairness opinions from Needham and Company and Seaport Global Securities. “This transaction reflects a disciplined and differentiated capital allocation approach that further supports our existing AI Infrastructure investment thesis,” CEO Sam Tabar said. Separately, Bit Digital disclosed the purchase of approximately 8,568 Ethereum for $20 million, acquired on May 11 at an average cost of approximately $2,334 per token.