PowerCompute Refinances $18M Debt at 2% Using Bitcoin
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- PowerCompute consolidated three existing debt facilities totaling $18 million into a new Bitcoin-backed credit facility with Arch Lending, pledging 307 BTC from its treasury as collateral.
- The new facility carries an initial interest rate of approximately 2% APR, compared with 12% on the two Liebel loans that totaled $7 million for Oklahoma and Mississippi mining sites.
- The refinancing replaced a prior $11 million loan from Galaxy Digital, a $5 million loan from SE and AJ Liebel for a 15-megawatt Oklahoma facility, and a $2 million Liebel loan for an 11-megawatt Mississippi facility.
- The Arch Lending deal originated with an initial bridge loan on July 27 before expanding into the full facility, announced via press release Wednesday.
- The interest rate resets at each 30-day rollover based on prevailing market conditions, and PowerCompute may be required to post additional collateral if Bitcoin's price declines.
Why it matters: PowerCompute slashed the effective interest rate on $7 million of its debt from 12% to roughly 2%, cutting annual interest expense by over $700,000 on that tranche alone. By pledging its 307 BTC treasury holdings rather than selling them, the miner preserves upside exposure to Bitcoin while consolidating three lenders into one, trading counterparty complexity for the embedded risk of a margin call if BTC drops.
