PowerCompute Ditches Bitcoin-Backed Loan Agreement, Sells Off Collateral
PowerCompute, a company involved in Bitcoin mining and high-performance computing, has terminated its Bitcoin-backed loan agreement. As part of this decision, approximately 267.3 BTC out of the 307 BTC provided as collateral were sold to repay the loan. The funds raised from this sale went towards repaying a $21.89 million loan principal, along with interest and transaction fees amounting to $118,582 and $440,122 respectively.
The remaining approximately 39.6 BTC held as collateral was returned to PowerCompute. The company stated that the sale did not result from a margin call or an unscheduled forced liquidation but rather from a mutual agreement between the parties during the September 24th renewal period predetermined in the loan agreement.
This move has significantly reduced PowerCompute's secured debt, bringing it down from $19.4 million on June 30 to approximately $1.25 million. The company now holds around 62 BTC, valued at around $5.2 million based on a price of $84,500 per unit.