Crypto
PowerCompute Cuts Debt Costs with $18M Bitcoin-Backed Facility
PowerCompute Inc., a digital mining and hosting company, has secured an $18.1 million Bitcoin-backed loan facility from ChainFi Inc. d/b/a Arch Lending through its subsidiary US Digital Mining and Hosting Co, LLC.
The non-recourse loan will have an interest rate of 2% per annum and is collateralized by 307 Bitcoins. The initial 30-day term will roll over every 30 days unless either party gives non-renewal notice.
PowerCompute used the proceeds to repay previously disclosed bridge loans totaling about $18 million, which had a higher interest rate of 12% per annum.