PowerCompute Refinances $18M Debt Through Bitcoin-Backed Loan At 2% Rate

Nasdaq listed Bitcoin miner PowerCompute has rolled its three separate debt facilities, totaling $18 million, into a single Bitcoin-backed credit line with Arch Lending. The company pledged 307 Bitcoin from its treasury as collateral, entering an initial bridge loan on July 27 before finalizing the new facility on Monday.

Interest Rate Drops Sharply From Prior Loans

The new facility replaces an $11 million loan from Galaxy Digital, along with two loans from SE and AJ Liebel: $5 million used for a 15-megawatt Oklahoma facility and $2 million for an 11-megawatt Mississippi site. The refinanced debt now carries an initial rate of about 2% APR, a steep drop from the 12% rate on the combined $7 million in Liebel loans. The rate resets every 30 days based on market conditions.

Company Keeps Bitcoin Exposure With Added Risk

The arrangement lets PowerCompute maintain its Bitcoin holdings rather than selling to cover debt, though the company may need to post additional collateral if Bitcoin’s price falls.