PowerCompute said that it refinanced and consolidated three existing debt facilities totaling $18 million through a new Arch Lending facility backed by 307 Bitcoin. The agreement replaces loans used for facilities in Oklahoma and Mississippi, making Bitcoin collateral the centerpiece of a lower-cost balance-sheet reset.
The company first entered a short-term bridge loan, then on August 3 moved into a non-recourse Bitcoin-backed facility with a revolving 30-day term. Its interest rate is approximately 2% APR, compared with 12% on the prior Liebel loans, while the structure avoids an outright sale of treasury Bitcoin and uses hedging intended to reduce liquidation risk.
The facility automatically renews for successive 30-day periods unless either party opts out, with the rate and price thresholds reset at each rollover. PowerCompute said the refinancing lowers interest expense while preserving exposure to potential Bitcoin appreciation, leaving collateral management and rollover terms as the key financing risks if Bitcoin declines.
Source: PowerCompute.
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