Bitcoin-backed loan refinances PowerCompute’s $18M debt at 2%
Nasdaq-listed PowerCompute refinanced $18 million of debt through a Bitcoin-backed facility carrying an initial interest rate of about 2%.
PowerCompute, a Nasdaq-listed Bitcoin mining company, has refinanced $18 million of debt through a new Bitcoin-backed credit facility with Arch Lending. The company pledged 307 Bitcoin from its treasury as collateral for the initial interest rate of approximately 2% APR. This new facility replaced PowerCompute's previous loans from Galaxy Digital, SE and AJ Liebel, and Liebel for a total of $18 million.
The new facility initially carries a lower interest rate compared to the 12% APR on the Liebel loans, totaling $7 million. The interest rate on the new facility is reset at each 30-day rollover based on prevailing market conditions. PowerCompute may need to post additional collateral if Bitcoin's price declines.
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