Loan & DebtAug 5, 2026, 08:38 AM
PowerCompute Refinances $18M Debt at 2% APR, Secured by Bitcoin
AI Summary
PowerCompute, Inc., through its subsidiary US Digital Mining and Hosting Co, LLC, entered into a new $18.1 million non-recourse, Bitcoin-backed loan facility with Arch Lending. This new facility, secured by 307 Bitcoin, carries an interest rate of 2.0% per annum, significantly reducing the company's interest expense compared to previous loans at 12%. The refinancing replaces three existing debt facilities totaling $18 million, strengthening the balance sheet and allowing the company to retain its Bitcoin holdings.
Key Highlights
- Secured a new $18.1 million loan facility with Arch Lending.
- New loan bears interest at 2.0% per annum.
- Refinances previous loans with 12% interest rates.
- Loan is secured by 307 Bitcoin from the company's treasury.
- Replaces $11 million loan from Galaxy Digital and $7 million from SE and AJ Liebel.
- Loan is non-recourse, collared, and rolls over every 30 days.
- Significantly lowers interest expense and strengthens the balance sheet.
Price Impact
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