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

Aug. 14, 2026 at 12:30 am GMT • 2 min read 01 Bit Digital pledged 49,000 LsETH to back a $50 million Galaxy loan and booked a $46 million impairment. 02 The financing funded WhiteFiber without selling ETH or issuing shares, but tied part of the treasury to loan collateral. 03 Public filings do not show how close Bit Digital is to a margin call, while Galaxy can liquidate collateral if thresholds are missed.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 facil...