I've always liked acronymize, just for the ludicrosity of it.
and it's in the Online OED, which has this disfortunate citation:

Byte is a fairly far-fetched way of acronymizing binary digit eight.

the usual story is that 'byte' was a purposeful misspell of 'bite' made to avoid accidental mutation to bit (or to differentiate from that other bite).

Last edited by tsuwm; 12/13/2010 8:34 PM.