Falls as $100M WhiteFiber Loan Tests ETH Treasury Strategy

TLDR

• Bit Digital stock falls as WhiteFiber loan tests its ETH treasury strategy.

• BTBT slips pre-market after Bit Digital backs WhiteFiber with $100M loan.

• Bit Digital uses ETH-backed financing to support WhiteFiber’s AI growth.

• WhiteFiber loan deal puts Bit Digital’s strategic asset model under focus.

• BTBT reacts lower as Bit Digital expands its ETH treasury beyond staking.

Bit Digital stock moved lower before the opening bell after the company announced a major WhiteFiber financing deal. BTBT closed at $2.03, up 2.01%, but later fell to $1.9631 in pre-market trading, down 3.30%. The move came as the company linked a $100 million lending facility to its Ethereum-backed treasury strategy.

Bit Digital Uses Loan Deal to Extend WhiteFiber Growth

Bit Digital said it originated and served as lender for a $100 million delayed draw term loan facility. The borrower is a subsidiary of WhiteFiber, an AI infrastructure and high-performance computing provider. WhiteFiber trades on Nasdaq under WYFI, and Bit Digital holds a majority ownership interest.

The facility gives WhiteFiber access to up to $100 million in delayed draw financing. Moreover, the parties may expand the facility to $150 million through mutual agreement. The structure gives WhiteFiber fresh capital for near-term growth plans across AI and HPC infrastructure.

B. Riley Securities bought part of the term loans from Bit Digital Capital. As a result, the facility includes external participation while keeping Bit Digital central to the financing. The company said the deal supports strategic assets already inside its wider platform.

ETH Treasury Strategy Moves Beyond Staking

Bit Digital expects to fund advances partly through an Ethereum-denominated secured credit facility. Therefore, the company aims to keep ETH exposure while earning income from the loan asset. The approach links treasury management with credit activity rather than only staking.

The company framed the deal as part of its Strategic Asset Company model. It said the loan economics can exceed traditional ETH staking yields. Besides that, the structure supports WhiteFiber’s growth while preserving Bit Digital’s exposure to Ethereum.

This strategy adds a new test for Bit Digital’s balance sheet approach. The company now uses ETH-backed financing to pursue returns from an affiliated infrastructure asset. However, the market reaction showed pressure on BTBT shares before regular trading opened.

Governance Review Backs the WhiteFiber Transaction

Bit Digital said its board approved the transaction after a governance review. An independent committee of disinterested directors also reviewed the deal’s economics, structure, risk profile, and shareholder alignment. The process focused on the relationship between Bit Digital and WhiteFiber.

Needham and Company gave Bit Digital’s board a written fairness opinion. Meanwhile, Seaport Global Securities gave WhiteFiber’s board a separate written fairness opinion. These opinions formed part of the review before both boards moved ahead.

The deal places Bit Digital at the center of three linked themes. It combines Ethereum treasury use, AI infrastructure exposure, and strategic lending within one transaction. BTBT’s pre-market decline shows the market immediately priced the financing plan into the stock.