PowerCompute Refinances $18M Debt at 2% with Bitcoin

PowerCompute has successfully refinanced its $18 million debt at an interest rate of approximately 2% APR. The company used 307 Bitcoin as collateral for a new Arch Lending facility, replacing existing loans with higher interest rates.

The previous loans had an interest rate of around 12%, whereas the new facility offers a significantly lower rate. This refinancing is expected to reduce PowerCompute's interest expense and allow it to preserve its exposure to potential Bitcoin appreciation.

The company initially entered into a short-term bridge loan, followed by a non-recourse Bitcoin-backed facility with a revolving 30-day term. The agreement automatically renews for successive 30-day periods unless either party opts out, with the rate and price thresholds reset at each rollover.