Bit Digital has extended a $100 million loan facility to WhiteFiber, secured by an Ethereum credit line. The deal, disclosed this week, marks one of the larger single-loan moves tied directly to a crypto asset as collateral. It shows how institutional lenders are increasingly comfortable using digital assets to back real-world credit.
How the ETH-backed loan works
WhiteFiber tapped an Ethereum credit line to guarantee the facility. That means the lender — Bit Digital — holds a claim on a pool of ETH if WhiteFiber defaults. The exact interest rate and repayment terms weren't disclosed, but the structure resembles a collateralized loan agreement common in traditional finance, only with a volatile asset on one side.
Bit Digital is a bitcoin mining firm that has been pivoting toward lending and yield strategies. WhiteFiber appears to be a borrower in the crypto infrastructure space, though its specific business wasn't detailed in the announcement.
The timing is notable. Institutional crypto lending has been cautious since the 2022 credit crises, but 2026 has seen a slow thaw. A $100 million facility backed by an Ethereum credit line suggests both parties have confidence in the asset's liquidity and valuation. It's not the first such deal, but it's a sizable one for a single counterparty.
Ethereum's price has been relatively stable this quarter, which likely made the terms easier to negotiate. Still, the loan is only as solid as the collateral — if ETH drops sharply, Bit Digital may need to call for more margin.
The loan facility is active now. Neither company has said whether this will be a one-off or the first of a series. Watch for any public updates on the Ethereum credit line's utilization rate — that'll tell you if WhiteFiber draws the full amount or trickles it out. For now, it's a bet that crypto-backed lending can work at scale without a meltdown.
