PowerCompute Pledges 307 BTC to Refinance $18M at 2%
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- PowerCompute consolidated three existing debt facilities totaling $18 million into one Bitcoin-backed credit facility with Arch Lending, replacing prior loans from Galaxy Digital ($11M), SE and AJ Liebel ($5M), and Liebel ($2M).
- PowerCompute pledged 307 BTC from its treasury as collateral, entering an initial bridge loan with Arch on July 27 before formalizing the new arrangement per a Wednesday press release.
- The new facility carries an initial interest rate of roughly 2% APR, down from the 12% rate on the two Liebel loans totaling $7 million.
- The Liebel loans funded specific mining infrastructure — $5M for a 15-megawatt Oklahoma facility and $2M for an 11-megawatt Mississippi site — both now folded into the Arch facility.
- The arrangement resets its rate at each 30-day rollover based on market conditions, letting PowerCompute retain Bitcoin exposure but potentially requiring additional collateral if BTC declines.
Why it matters: PowerCompute slashed borrowing costs on its Liebel loans from 12% to 2% APR by pledging 307 BTC as collateral, but the 30-day rate reset and margin-call provision tie those savings to Bitcoin's near-term price — if BTC weakens, the company may need to post more collateral or face liquidation on its treasury holdings.
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