Bit Digital plans to use proceeds from offering to buy Ethereum.

Bit Digital plans to use proceeds from offering to buy Ethereum.

Bit Digital, Inc. (NASDAQ: BTBT), a prominent cryptocurrency mining company, has secured a $43.9 million financing facility from the Royal Bank of Canada to support the buildout of its Tier-3 AI data center in Pointe-Claire, Quebec, known as MTL-2. The company, which reported a significant earnings miss in Q1 2025, has been focusing on strategic initiatives to bolster its operations. The financing agreement includes a $5.8 million revolving term facility and a three-year, $18.5 million non-revolving lease facility for equipment and related costs. Additionally, Enovum Data Center Corp., a subsidiary of WhiteFiber Inc., secured a three-year, $19.6 million non-revolving real estate term loan facility to refinance the purchase of the MTL-2 property. The company expects the MTL-2 data center buildout to be completed and operational by the end of 2025, with further expansion projects planned.

Bit Digital's stock experienced a rise following the earnings miss, reflecting investor optimism about the company's strategic initiatives. The company also reported a successful annual meeting with strong support for all resolutions. Moreover, Moody's downgrade of the U.S. credit rating has led to a broader trend of risk aversion, impacting Bit Digital and other cryptocurrency-related stocks.

In other recent news, Bit Digital's subsidiary, WhiteFiber Inc., announced plans to develop a new AI data center campus in North Carolina, with the first phase expected to be operational by the end of 2025. The data center, recognized as a qualifying facility by the State of North Carolina, will benefit from certain tax exemptions and aims to expand capacity to 200 MW. Additionally, Bit Digital shareholders approved several key proposals, including the election of directors and the adoption of the 2025 Omnibus Equity Incentive Plan.

The company's latest financial covenants include maintaining a fixed charge coverage ratio of at least 1.20:1 and a net funded debt to EBITDA ratio not greater than 4.25:1, decreasing to 3.50:1 from December 31, 2027. The financing arrangement is non-recourse to both WhiteFiber and Bit Digital, positioning the company well for future growth and expansion.

The $5.8 million revolving facility will be available for 36 months, subject to issuance of a performance security guaranty from Export and Development Canada and other supporting documents. The interest rate for the three-year lease term and the real estate term loan facility will be fixed or a floating rate ranging from RBP plus 0.75% to CORRA plus 250 basis points, respectively.

The company expects the MTL-2 data center buildout to be completed and operational in the fourth quarter of 2025, with further expansion projects planned. All information is based on a press release statement and details from Bit Digital’s SEC filing.

References:
[1] https://www.investing.com/news/sec-filings/bit-digital-secures-439-million-rbc-facility-for-canadian-data-centers-93CH-4110031
[2] https://www.stocktitan.net/news/BTCS/btcs-inc-acquires-1-000-eth-expanding-ethereum-holdings-to-14-600-ss1oibn6kzta.html
[3] https://www.globenewswire.com/news-release/2025/06/25/3105269/0/en/Ethereum-ETH-Based-Meme-Coin-Little-Pepe-Raises-Over-2-Million-in-Presale-Gaining-Huge-Support-from-Early-Investors.html