Crypto
Bit Digital Pledges 74% of Staked Ethereum Position to Galaxy Digital
Bit Digital has pledged 74% of its staked Ethereum position to Galaxy Digital in exchange for $50 million, which can trigger a 24-hour collateral call if not met.
The company funded AI infrastructure company WhiteFiber without selling Ethereum or issuing new shares, but the route added a new dependency to its crypto treasury.
Bit Digital converted 73,235 ETH into LsETH and reported it as a $105.6 million digital-asset collateral receivable, retaining 17,192 LsETH worth $27.6 million as a buffer against margin requirements.
The loan from Galaxy has a 5.45% interest rate, and WhiteFiber's facility is backed by a pledge of Enovum NC-1 Topco stock and a parent guaranty from White Fiber Operating Partnership.