PowerCompute Takes on More Debt After BTC Collar Reset

PowerCompute, a Bitcoin treasury and mining company, has taken on more debt after its early reset of a 30-day collar involving 307 BTC. The firm added $3.765 million to its debt following the move.

The original loan filing carried an $18.13 million balance and 2% rate. However, the replacement loan's annual interest rate rose to 6.5%, and its interest bill for the period is estimated at $118,582.38 under a 30/360 calculation.

PowerCompute elected to add the unwind cost to the balance rather than paying it in cash or USDC. The new collar sets a $71,112 floor and a $75,000 ceiling with a knock-in barrier of $93,500. If the Sept. 24 reference price reaches at least this barrier, excess appreciation will arise.

At this barrier exactly, the formula for calculating excess appreciation is: 307 × ($93,500 − $75,000) = $5,679,500. This amount can be settled through retained BTC or USD/USDC, and if PowerCompute rolls the loan, it can add the amount to principal or incorporate it into the next ceiling and rate quote.