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Bit Digital reported second-quarter revenue of $32.1 million, a 15% increase from the previous quarter, while reducing its net loss to $107.2 million from $146.7 million.
To finance the construction of its WhiteFiber data center, the company borrowed $50 million against a portion of its Ethereum holdings, avoiding the sale of digital assets or the issuance of new equity.
The financing structure used the borrowed funds to establish a credit facility of up to $150 million for WhiteFiber, Bit Digital's subsidiary for AI infrastructure and high-performance computing.
Guaranteed by the parent company and reviewed by independent committees at both entities, this arrangement allowed Bit Digital to preserve its Ethereum holdings and ownership stake while securing capital for the NC-1 data center campus, which is expected to begin generating revenue in the third quarter.
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