Key facts
- PowerCompute secured an $18 million Bitcoin-backed credit facility with Arch Lending.
- The company pledged 307 Bitcoin as collateral.
- The new facility has an initial interest rate of approximately 2% APR.
- This refinances previous loans totaling $18 million, including a $11 million loan from Galaxy Digital.
Nasdaq-listed Bitcoin mining firm PowerCompute has consolidated its existing debt into a new Bitcoin-backed credit facility valued at $18 million, provided by Arch Lending. The company has pledged 307 Bitcoin from its treasury as collateral for this arrangement. This move replaces three prior debt facilities, including an $11 million loan from Galaxy Digital and two loans totaling $7 million from SE and AJ Liebel, which were used to acquire mining facilities. The new facility carries an initial interest rate of approximately 2% per annum, a significant reduction from the 12% rate on the previous Liebel loans. The interest rate is subject to reset every 30 days based on market conditions. While PowerCompute retains its Bitcoin exposure, the agreement includes a provision requiring additional collateral if the price of Bitcoin declines.