PowerCompute swaps $18M in mining debt for 2% Bitcoin-backed loan, keeps its $BTC

Nasdaq-listed Bitcoin miner PowerCompute has folded three existing debt facilities totaling $18 million into a single new Bitcoin-backed credit line with Arch Lending, according to a Wednesday press release shared with Cointelegraph.

The new facility is backed by 307 Bitcoin ($BTC) pledged from the company's treasury. PowerCompute first drew on an initial bridge loan from Arch on July 27 before converting into the long-term structure on Monday. The deal consolidates PowerCompute's previous $11 million loan from Galaxy Digital, a $5 million loan from SE and AJ Liebel that funded the acquisition of a 15-megawatt Oklahoma site, and a separate $2 million Liebel loan that financed an 11-megawatt Mississippi facility.

The Arch facility carries an initial interest rate of approximately 2% APR, compared with the 12% rate PowerCompute was paying on the two Liebel loans, which together totaled $7 million. The rate is reset every 30 days based on prevailing market conditions. Under the agreement, PowerCompute retains exposure to its Bitcoin holdings, though it may be required to post additional collateral if the price of $BTC declines.