Bit Digital bankrolls WhiteFiber with $100M ETH-collateralized loan for AI expansion, stock falls

Bit Digital extended a $100 million delayed-draw loan facility to WhiteFiber, using an Ethereum-backed credit line as the primary security for the funding ^{[1] [2]}.

The financing is intended to support WhiteFiber's AI infrastructure expansion; under the arrangement Bit Digital retains exposure to Ethereum and stands to earn the spread on the credit line ^{[1] [3]}.

Market reaction was negative: Bit Digital (BTBT) shares dipped after the announcement as investors assessed the implications for the company’s Ethereum strategy ^{[2] [4]}.

Observers say the deal illustrates how crypto assets can be used to diversify corporate revenue streams, while also underscoring risks tied to crypto market volatility and investor scrutiny ^[3].

The transaction highlights a growing use of crypto-backed financing in corporate deals and has prompted close market attention as BTBT navigates the tradeoff between ETH exposure and lending returns ^{[1] [2] [3]}.