BTBT Bit Digital, Inc
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Executive Summary
Bit Digital's wholly-owned subsidiary Bit Digital Capital, Inc. entered into a $100M delayed draw term loan facility (expandable to $150M) with Enovum NC-1 Venture, LLC, an indirect subsidiary of WhiteFiber, Inc. (WYFI), to fund HPC data center buildout. Bit Digital funded the initial $50M advance via a new Galaxy Digital ETH-backed credit facility at 5.45%, earning a 9.5% spread on the intercompany loan. B. Riley purchased a $20M portion of the loan. The structure creates a leveraged carry trade: Bit Digital borrows against ETH at 5.45% and lends at 9.5%, retaining ETH upside while earning net ~4% spread on $50M, with $20M of risk transferred to B. Riley.
Key Financial Metrics
Actionable Insight
The carry trade structure (borrow at 5.45% against ETH, lend at 9.5%) is net positive for BTBT shareholders — it monetizes ETH holdings without selling, earns a spread, and retains ETH upside. Watch for: (1) Galaxy margin calls if ETH drops sharply (24-hour margin call window), (2) NC-1 Phase I completion and leasing milestones triggering Rate Step Down, (3) permanent financing closing (Collateral Step Down Event) which releases liens and guarantees. The B. Riley $20M assignment validates third-party appetite for the credit. Key risk: Galaxy facility termination triggers if BTBT NAV drops 25% month-over-month.
Key Facts
- Term loan facility of up to $100M (expandable to $150M) from Bit Digital Capital, Inc. to Enovum NC-1 Venture, LLC, effective May 20, 2026
- Initial $50M draw on May 20, 2026, funded via Galaxy Digital LLC credit facility at 5.45% interest rate
- Bit Digital earns 9.5% interest on the intercompany loan (8% after Rate Step Down Event), creating a ~4% net spread
- B. Riley Securities purchased a $20M portion of the loan on May 26, 2026, with same economic terms and 90-day term
- Loan secured by stock in Enovum NC-1 Topco, Inc.; guaranteed by White Fiber Operating Partnership LP
- 3% original issue discount on each advance; minimum 1.1x MOIC on repayment
- Facility availability period is 9 months (extendable to 12 months); interest is payment-in-kind eligible
- Transaction approved by independent committees of both Bit Digital and WhiteFiber boards; fairness opinions from Needham & Co. and Seaport Global
Financial Impact
Bit Digital deploys $50M at 9.5% (funded at 5.45%), earning ~$2M/year net spread on $50M, plus potential for $100M-$150M total deployment. B. Riley absorbing $20M reduces Bit Digital's risk. ETH collateral retains upside exposure.
Risk Factors
- ETH price decline could trigger margin calls on the Galaxy facility, requiring additional collateral within 24 hours
- Galaxy facility termination events: BTBT NAV decline of 25%+ month-over-month or Net Worth below 50% of highest month-end level
- NC-1 buildout delays or leasing shortfalls could delay Rate Step Down and permanent financing
- WhiteFiber subsidiary credit risk — if Enovum NC-1 Venture defaults, Bit Digital's $50M+ exposure is secured by stock in a development-stage entity
- Related-party transaction governance risk despite independent committee and fairness opinions
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-061574 |
| Document: ea029203101ex10-1.htm | 0001213900-26-061574 |
| Document: ea0292031-8k_bitdigital.htm | 0001213900-26-061574 |
| Document: ea029203101ex99-1.htm | 0001213900-26-061574 |
| Document: 0001213900-26-061574-index-headers.html | 0001213900-26-061574 |
| Document: 0001213900-26-061574-index.html | 0001213900-26-061574 |
| Document: 0001213900-26-061574.txt | 0001213900-26-061574 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
May 27, 2026
16d ago
|
8-K
| $2.03 $1.85 | ▼ −8.87% | ▼ −9.18% | $1.74 (−14.29%) |
|
Mar 31, 2026
10w ago
|
8-K
| $1.38 $1.34 | ▲ +2.90% | ▲ +6.66% | $1.74 (−26.09%) |
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Feb 25, 2026
15w ago
|
8-K
| $1.78 $1.72 | ▲ +3.37% | ▲ +2.24% | $1.74 (+2.25%) |
US Market Status
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