PowerCompute Cancels Loan Agreement, Sells Over 267 BTC

PowerCompute, a company involved in Bitcoin mining and high-performance computing, has canceled its Bitcoin-backed loan agreement with Arch Lending. The move involves selling 267.3 Bitcoins out of the 307 provided as collateral to repay a $21.89 million loan principal.

The funds raised also covered approximately $118,582 in interest and $440,122 in transaction fees. After settling the debt, PowerCompute received back around 39.6 Bitcoin that was held as collateral.

According to the company's statement, this sale was a mutual agreement between the parties during the September 24th renewal period of the loan agreement. This means it wasn't a forced liquidation or margin call, but rather a deliberate decision made with Arch Lending.

This move has significantly reduced PowerCompute's secured debt from $19.4 million on June 30 to approximately $1.25 million. The company also announced its new strategy of treating Bitcoin as working capital for equipment purchases, operations, and growth, rather than leveraging it through debt.