Bit Digital announced on Wednesday that it is extending a $100 million delayed-draw term loan facility to a subsidiary of its majority-owned WhiteFiber, a New York-based AI infrastructure and high-performance computing provider. The facility is designed to support WhiteFiber's near-term high-performance computing and AI expansion initiatives. Bit Digital said it expects advances under the facility to be funded in whole or in part through drawings against an Ethereum-denominated secured credit facility, allowing the company to retain ETH exposure while earning a financing spread on the loan asset. The arrangement reflects Bit Digital's strategic pivot from bitcoin mining to AI infrastructure investment, a shift the company formalized in January when it announced plans to completely wind down mining operations it had entered in 2020.
Facility Structure and Ethereum Backing
The $100 million facility can be expanded to $150 million upon mutual agreement between Bit Digital and WhiteFiber. According to Bit Digital's statement, advances under the facility will be funded through drawings against an Ethereum-denominated secured credit facility. This structure enables Bit Digital to maintain exposure to ETH while generating returns through the financing spread on the loan asset. Bit Digital CEO Sam Tabar stated the 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."
Business Transition from Mining to AI
Bit Digital has fully exited its bitcoin mining business. In January, the company announced plans to completely wind down mining operations, a business it entered in 2020. Tabar wrote in a letter to shareholders at the time that mining "became a less efficient use of capital" relative to opportunities offering active participation and yield generation. The company consolidated its digital asset exposure into Ethereum and prioritized its AI infrastructure stake in WhiteFiber.
Financial Performance
In the first quarter of 2026, Bit Digital reported $27.9 million in total revenue, down 13.6% from Q4 2025. The company posted a net loss of $146.7 million for Q1, compared with a $185.3 million net loss in the previous quarter. Shares of Bit Digital closed at $2.03 on Wednesday, up 2.01% for the session.
