Bit Digital originates $100 million WhiteFiber loan tied to AI data center buildout

Bit Digital (Nasdaq: BTBT) originated a $100 cardinal delayed gully word indebtedness installation for its subsidiary firm, WhiteFiber, Inc. (Nasdaq: WYFI), with the capableness to grow to $150 cardinal by communal agreement, according to a property merchandise precocious Wednesday. The institution said the financing supports WhiteFiber’s near-term maturation initiatives portion targeting risk-adjusted returns that transcend accepted ETH staking yields.

Bit Digital Capital, Inc., the company’s wholly-owned subsidiary, served arsenic lender. B. Riley Securities purchased a information of the word loans nether the installation from Bit Digital Capital.

Loan mechanics

The loan’s terms, elaborate successful a May 20 SEC Form 8-K, place the borrower arsenic Enovum NC-1 Venture, LLC, an indirect wholly-owned subsidiary of White Fiber Operating Partnership LP. The installation has a nine-month availability play with a imaginable three-month extension.

Interest runs astatine 9.5% per annum until a complaint step-down event, aft which it drops to 8%. That step-down depends connected the borrower demonstrating that the 40 megawatt Phase I buildout of an HPC information halfway successful Madison, North Carolina is substantially complete, with astatine slightest 80% of Phase I capableness leased astatine marketplace rates. Each beforehand is funded nett of a 3% archetypal contented discount, and payments astatine maturity indispensable adjacent astatine slightest 1.1 times the main magnitude of each advance, little amounts already received.

ETH treasury arsenic backing root

Bit Digital said it expects to money advances successful full oregon successful portion done drawings against an Ethereum-denominated secured recognition facility. The operation allows the institution to clasp ETH vulnerability portion earning a financing dispersed connected the indebtedness asset.

“This transaction reflects a disciplined and differentiated superior allocation attack that further supports our existing AI Infrastructure concern thesis, arsenic expressed done our holdings of WhiteFiber, portion pursuing charismatic risk-adjusted economics for our treasury that we judge transcend accepted ETH staking yields,” CEO Sam Tabar said successful the company’s announcement.

Related-party governance

The transaction carries a related-party dimension. In June 2025, Bit Digital described WhiteFiber arsenic its wholly-owned AI portion erstwhile WhiteFiber acquired the Madison, North Carolina tract for $45 million. WhiteFiber present trades publically nether its ain ticker.

NC-1 buildout

The indebtedness proceeds whitethorn beryllium utilized for wide firm purposes, including completion of the archetypal signifier of NC-1, a information halfway field connected a 96-acre, astir 1 cardinal quadrate ft concern spot successful Madison. WhiteFiber said successful June 2025 that the tract had a capableness statement with Duke Energy for 99 MW, with preliminary feasibility supporting up to 200 MW implicit time.

The loan’s economics are tied to that buildout. Bit Digital’s financing dispersed narrows lone aft WhiteFiber gets the archetypal 40 MW built and leased, linking the lender’s returns to task execution alternatively than marketplace conditions alone.