Bit Digital C$60M credit facility with RBC validates AI business model, analysts say
Published: 13:12 24 Jun 2025 EDT
Bit Digital Inc (NASDAQ:BTBT) has earned a repeat ‘Buy’ rating from Noble Capital Research analysts after it announced its subsidiary WhiteFiber has secured a C$60 million credit facility with the Royal Bank of Canada (RBC).
The credit facility, which includes a real estate term loan, equipment financing and a revolving facility, supports the continued development of WhiteFiber’s Tier-3 AI data centers.
“We view this step favorably, as the facility not only provides funds to support the continued buildout of WhiteFiber's Tier-3 AI data center portfolio but also is a confirmation of Bit Digital's AI business model, in our view,” the analysts wrote.
“While we expect an 8-K to be filed with a full accounting of the terms, the credit agreement is among RBC and ENOVUM Data Centers and its Montreal II project as borrowers and guarantors, and is non-recourse to WhiteFiber or Bit Digital.”
The company acquired Montreal II at the end of 2024 for C$33.5 million and expects to spend about C$27.6 million to develop it to Tier-3 standards.
This includes retrofitting the site with advanced cooling technology, including direct-to-chip liquid cooling, which enhances energy efficiency and supports AI and other high-performance workloads with 150kW rack density. It is expected that the facility will be operational in the second half of this year.
Further, the company’s $500 million shelf filing became effective at the end of last week, which the analysts see providing the company with additional flexibility to raise capital through an array of equity and debt securities as needed.
Noble analysts continue to see significant upside for Bit Digital, maintaining its $5.50 price target. Shares traded hands at $2.32 at the time of writing.
“We believe the company continues to be valued as a basic BTC miner rather than the digital infrastructure provider into which it has morphed,” they wrote. “The addition of the HPC business gives the company a stable, recurring revenue stream that diversifies risk from cryptocurrency in our view.”
