PowerCompute Refinances $18M Debt at 2% APR via Bitcoin-Backed Loan
Nasdaq-listed Bitcoin mining company PowerCompute has secured an $18 million debt refinancing through a new Bitcoin-backed credit facility with Arch Lending. The company pledged 307 BTC from its treasury as collateral in exchange for lower interest rates.
The new facility replaces three existing debt facilities, including two loans from SE and AJ Liebel totaling $7 million, which carried an eye-watering 12% APR. In contrast, the new facility comes with a relatively low 2% APR, although this rate is reset at each 30-day rollover based on prevailing market conditions.
The refinancing deal allows PowerCompute to retain its Bitcoin exposure while taking advantage of lower interest rates. However, if Bitcoin's price declines significantly, the company may be required to post additional collateral under the new facility.