Overview
- PowerCompute consolidated three loans into a single Arch Lending facility that used 307 BTC as collateral to cover roughly $18.13 million in outstanding debt.
- The revolving facility carries an initial interest rate of about 2% APR and automatically rolls over every 30 days with interest, floor and ceiling prices reset at each rollover.
- Filed terms show an initial loan balance of $18,127,131.88, an effective loan-to-value near 92%, and floor and ceiling reference strikes set at $58,860 and $66,370 for the first period.
- PowerCompute can avoid selling its bitcoin and lower near-term cash interest outlays, but it faces the prospect of posting more collateral or surrendering pledged coins if the monthly reset shows a shortfall.
- The transaction follows a broader shift toward bitcoin-backed corporate lending and is presented by management as a way to strengthen liquidity and fund expansion into high-performance computing and AI infrastructure.