PowerCompute Refinances $18M Debt with 307 BTC, Seeks Lower Borrowing Costs
PowerCompute, a Bitcoin treasury and mining company listed on Nasdaq, has refinanced $18 million of existing debt using 307 BTC as collateral in a Bitcoin-backed credit facility from Arch Lending. This move allows the company to lower its borrowing costs without selling its Bitcoin holdings.
The new loan replaces three previous facilities, including an $11 million loan from Galaxy Digital and two loans totaling $7 million from SE and AJ Liebel, which were used to acquire mining sites in Oklahoma and Mississippi. The facility's initial interest rate is approximately 2% APR, significantly lower than the 12% interest charged on the previous Liebel loans.
PowerCompute Chairman Bruce M. Rodgers stated that the refinancing reduces interest expenses while allowing the company to maintain strategic exposure to its Bitcoin treasury as it continues expanding into high-performance computing and artificial intelligence infrastructure.