PowerCompute Closes Bitcoin-Backed Loan Agreement, Reduces Secured Debt
PowerCompute, a company involved in Bitcoin mining and high-performance computing, has ended its Bitcoin-backed loan agreement. As part of this move, approximately 267.3 BTC out of the 307 BTC provided as collateral were sold to repay the loan.
The sale raised funds used to settle a $21.89 million loan principal, around $118,582 in interest, and $440,122 in transaction fees. Following the debt settlement, the remaining approximately 39.6 BTC held as collateral was returned to PowerCompute.
This development comes after PowerCompute announced its intention to treat Bitcoin not as a leveraged treasury asset but as working capital for equipment purchases, operations, and company growth. By doing so, the company aims to reduce risks associated with publicly traded companies' Bitcoin strategies.