Key Takeaways:
WhiteFiber is stacking capital — a $100M delayed draw loan from its parent Bit Digital, a $160M AI compute deal in Paris, and permanent financing for its North Carolina campus — as the AI infrastructure arms race shifts from GPU procurement to balance-sheet engineering.
WhiteFiber Inc. secured a $100 million delayed draw term loan facility from Bit Digital Capital, a unit of Bit Digital Inc. (Nasdaq: BTBT), with an option to expand to $150 million, the company said Wednesday. The Nasdaq-listed AI infrastructure provider plans to use the proceeds for general corporate purposes, including the first-phase buildout of a high-performance computing data center in Madison, North Carolina.
"This facility gives WhiteFiber added flexibility to pursue near-term growth initiatives by bridging timing gaps between the start of a project and closing its associated permanent financing," Sam Tabar, chief executive officer of WhiteFiber, said in a statement. The company continues to advance non-dilutive financing solutions, including an expanded credit facility with Royal Bank of Canada and permanent financing for its NC-1 project, which Tabar said is expected to close in the near term.
B. Riley Securities purchased a portion of the term loans from Bit Digital Capital, adding a third-party financial institution to the capital structure. The delayed draw structure allows WhiteFiber to access funds in installments as projects advance, rather than taking the full amount upfront — a design that reduces immediate interest costs while preserving optionality for the company's pipeline of data center and cloud service projects.
The financing comes as WhiteFiber simultaneously expands its customer base and geographic footprint. The company recently signed a five-year, $160 million deal to provide Nvidia GPU-powered AI compute infrastructure for an unnamed investment-grade technology customer, with capacity located in the Paris region. The deployment is expected to start in July 2026, supported by customer prepayments including 12 months of advance service fees and project-level financing expected to close in June.
Capital Stack Strategy
WhiteFiber's approach reflects a broader trend among AI infrastructure providers: layering multiple financing instruments to fund capital-intensive data center construction without diluting equity. The delayed draw facility bridges the gap between project initiation and permanent financing close, while the RBC credit line provides working capital flexibility. The France deal's customer prepayment structure further reduces reliance on WhiteFiber's corporate balance sheet.
The company, spun out of Bitcoin miner Bit Digital in 2024, operates a vertically integrated model combining colocation, hosting and cloud services for generative AI workloads. Its existing infrastructure spans facilities in Canada through Bit Digital's Enovum subsidiary, a third-party site in Blönduós, Iceland, and leased capacity in Atlanta. Known customers include AI chipmaker Cerebras Systems, cloud provider Nscale — which agreed to an $865 million deal for 40 MW of space at WhiteFiber's North Carolina facility — and Modal Labs through Hyperbolic.
What It Means for Investors
WhiteFiber's ability to secure $100 million in debt financing from its parent, alongside a $160 million customer commitment and third-party bank participation, signals growing institutional confidence in the AI infrastructure asset class. For Bit Digital shareholders, the loan represents capital deployed into a subsidiary that is winning long-duration, investment-grade contracts — but also exposes BTBT to construction and execution risk at WhiteFiber's North Carolina and Paris projects. WhiteFiber trades on Nasdaq under WYFI; Bit Digital trades under BTBT.
This article is for informational purposes only and does not constitute investment advice.
