Bitcoin-backed loan refinances PowerCompute’s $18M debt at 2%
Summary
PowerCompute, a Nasdaq-listed Bitcoin mining company, consolidated $18 million in existing debt into a new Bitcoin-backed credit facility with Arch Lending. It pledged 307 BTC from its treasury as collateral and first entered a bridge loan with Arch on July 27 before moving to the new facility. The new agreement replaces an $11 million Galaxy Digital loan plus $7 million in loans from SE and AJ Liebel used to buy mining facilities in Oklahoma and Mississippi. The facility starts at about 2% APR, far below the 12% rate on the Liebel loans, and resets every 30 days based on market conditions. PowerCompute keeps its Bitcoin exposure, but may need to add collateral if BTC prices fall.
