Bit Digital pledged 74% of its staked Ethereum position to a loan that can trigger a 24-hour collateral call

Bit Digital funded the majority-owned AI infrastructure company WhiteFiber without selling Ethereum or issuing new shares, but the route added a new dependency to its crypto treasury.

Galaxy Digital lent Bit Digital $50 million in a borrowing associated with 49,000 pledged LsETH, and Bit Digital separately became a lender to WhiteFiber.

The company said in its second-quarter results that it converted 73,235 ETH into 66,192 LsETH, the liquid-staking token it received in the exchange. It reported the pledged 49,000 LsETH as a $105.6 million digital-asset collateral receivable and retained 17,192 LsETH, worth $27.6 million, as a buffer against margin requirements.

Bit Digital drew the $50 million from Galaxy on May 20 at a 5.45% interest rate. The separate WhiteFiber delayed-draw facility started at $100 million and could rise to $150 million only by mutual written agreement.

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