Crypto
PowerCompute Lowers Debt Burden with New BTC-Backed Loan
Nasdaq-listed Bitcoin mining company PowerCompute has taken a significant step in managing its debt. The company consolidated three existing debt facilities totaling $18 million under a new Bitcoin-backed credit facility with Arch Lending.
The new facility replaced previous loans from Galaxy Digital, SE and AJ Liebel, and another loan used to purchase an 11-megawatt Mississippi facility. PowerCompute pledged 307 BTC from its treasury as collateral for the new loan.
The initial interest rate on the new facility is about 2% APR, significantly lower than the 12% APR on two of Liebel's loans, which totaled $7 million. The rate will reset at each 30-day rollover based on prevailing market conditions.