Bit Digital is doing something clever with its Ethereum stash. The Nasdaq-listed company announced a $100 million delayed-draw term loan facility to a subsidiary of WhiteFiber, with the option to expand the commitment to $150 million. The twist: Bit Digital is funding portions of that loan through an Ethereum-denominated secured credit facility, meaning it gets to keep its ETH exposure while earning a financing spread that beats traditional staking yields.
The deal, originated on May 27, 2026, essentially turns Bit Digital into a crypto-native lending intermediary. It borrows against its Ethereum at one rate, lends to WhiteFiber at a higher rate, and pockets the difference.
How the numbers stack up
The loan to WhiteFiber carries a 9.5% annual interest rate, with a step-down to 8% once WhiteFiber hits certain Phase I completion and leasing milestones at its NC-1 data center facility in North Carolina. There’s also a 3% original issue discount and a 1.1x minimum multiple-on-invested-capital repayment baked into the terms.
On the funding side, Bit Digital pulled an initial $50 million draw from Galaxy Digital at 5.45% on a one-year renewable term, dated May 20. That’s the Ethereum-backed credit line in action. Simple math: borrow at 5.45%, lend at 9.5%, and the gross spread lands somewhere around 400 basis points before expenses.
