PowerCompute pledges 307 Bitcoin to refinance $18 million debt at 2%

Nasdaq-listed miner PowerCompute refinanced $18 million of debt through a Bitcoin-backed facility from Arch Lending, pledging 307 BTC as collateral at an initial rate near 2 percent.

The arrangement, announced in a press release shared with Cointelegraph, consolidates three existing loans into a single credit line that lets the company keep its Bitcoin exposure while cutting its interest bill.

The facility replaced an $11 million loan from Galaxy Digital, a $5 million loan from SE and AJ Liebel used to buy a 15-megawatt Oklahoma facility, and a $2 million Liebel loan for an 11-megawatt Mississippi site. The two Liebel loans carried 12 percent interest, versus the roughly 2 percent initial rate on the new facility, which resets at each 30-day rollover based on prevailing market conditions.

The low rate lasts one period. On September 2, 2026, PowerCompute must repay the loan, surrender collateral, or accept repriced terms, and it may be required to post additional Bitcoin if the price declines. At roughly $58,860 per coin, the 307 BTC collateral approaches the value of the debt, leaving the miner exposed to a liquidation event if prices slide before the deadline.

A 30-Day Rollover With a September Cliff

The structure embeds an option on margin calls: no forced liquidation until September, but a hard decision point at the end of the promotional period. PowerCompute entered an initial bridge loan with Arch on July 27 before signing the new facility this week, according to the release.

The repricing mechanism means the effective cost of the loan could rise sharply if Bitcoin's price falls and the lender demands more collateral, or if market rates climb at the next rollover. The miner's ability to retain its 307 BTC depends on keeping the loan-to-value ratio within the lender's tolerance through the summer.

The deal highlights the growth of structured crypto lending products that embed options on margin calls, shifting liquidation risk from daily price moves to a single future date. As more miners and treasury holders use Bitcoin as collateral, the concentration of such facilities could amplify price swings around their repricing deadlines, with Galaxy Digital and Arch Lending among the lenders competing for the business.

This article is for informational purposes only and does not constitute investment advice.