Bit Digital secures $43.9 million RBC facility for Canadian data centers

Bit Digital, Inc. (NASDAQ:BTBT), a cryptocurrency mining company with a market capitalization of $508.5 million and strong revenue growth of 52.4% in the last twelve months, announced Wednesday that its wholly owned Canadian subsidiaries, under WhiteFiber Inc., entered into a definitive credit agreement with the Royal Bank of Canada. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, which positions it well for this financing arrangement. According to a press release statement based on a recent SEC filing, the agreement provides up to approximately $43.9 million in financing, calculated using the CAD/USD exchange rate reported by Bloomberg on June 18.

The financing will primarily be used to refinance the buildout of WhiteFiber’s Tier-3 AI data center at 7300 Trans Canada Highway in Pointe-Claire, Quebec, known as MTL-2, and includes a $5.8 million revolving term facility. The arrangement is non-recourse to both WhiteFiber and Bit Digital.

Enovum Data Center Corp., a subsidiary of WhiteFiber, entered into a three-year, $18.5 million non-revolving lease facility to finance equipment and related costs. This lease will be amortized over six years, with a six-month capital moratorium following disbursement. Royal Bank of Canada may cancel any unused portion of the facility after March 31, 2026. The interest rate will be fixed for the three-year lease term, as determined by the bank.

Additionally, Enovum secured a three-year, $19.6 million non-revolving real estate term loan facility to refinance the purchase of the MTL-2 property. The interest rate for this loan will be set at the time of borrowing, or may be a floating rate ranging from RBP plus 0.75% to CORRA plus 250 basis points, with the principal and interest due 30 days after drawdown and repayable in full at the end of the term.

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.

Enovum agreed to certain financial covenants, including 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 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.

In other recent news, Bit Digital, Inc. reported its Q1 2025 earnings, revealing a significant earnings miss with an EPS of -$0.32 compared to the forecasted -$0.03. The company’s revenue fell 17% year-over-year to $25.1 million, driven by a 64% decline in Bitcoin mining revenue, though cloud services revenue surged by 84%. Despite the earnings miss, Bit Digital’s stock experienced a rise, reflecting investor optimism about its strategic initiatives. In another development, 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 also reported a successful annual meeting with strong support for all resolutions. Furthermore, 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.

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