PowerCompute has 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. The 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.
According to a filed Reset Confirmation, the first monthly decision on the 307 pledged BTC comes on Sept. 2, with a reference-price check at 8:00 a.m. EST against a $58,860 floor and $66,370 ceiling. PowerCompute then has until 5:00 p.m. EST to accept a new quote or close out. Crucially, price and loan-to-value (LTV) moves during the initial period trigger no margin call or liquidation, even if Bitcoin crosses either strike before Sept. 2. The collar is tested only at the reset time, shifting pressure from daily price moves to a monthly financing choice.
If the reference price is below $58,860, PowerCompute may let Arch keep the pledged BTC in full satisfaction of the debt, with no deficiency claim. It can instead repay and recover all Bitcoin. Between the floor and ceiling, it can repay and retrieve collateral or roll on newly quoted terms. Above $66,370, the upside is capped; Arch receives the excess appreciation. No response produces automatic maturity rather than default.
The refinancing replaced an $11 million Galaxy Digital loan and two Liebel loans of $5 million and $2 million. The new 2% initial rate applies to the full facility, though the 12%-to-2% comparison covers only the $7 million Liebel portion. PowerCompute said the move lowers interest expense while preserving exposure to potential Bitcoin appreciation, leaving collateral management and rollover terms as the key financing risks if Bitcoin declines.
