USBC draws additional $3 million loan backed by Bitcoin collateral

USBC, Inc. has secured an additional $3.0 million fixed-rate loan, raising its total principal outstanding to $21.0 million under its Master Loan Agreement with Payward Interactive, Inc. This "Fifth Draw" was completed on September 11, 2023, following the original agreement dated March 18, 2026. The loan, subject to specific conditions, carries an annual interest rate of 8.5% and is set to mature on September 11, 2027.

The collateral backing this loan is exclusively Bitcoin, with 479 Bitcoin securely held by Payward Financial, Inc. These assets are managed through an account control agreement among USBC, Payward Interactive, and the custodian, with specific liquidation provisions in place should the collateral's value fall below certain thresholds.

If the Bitcoin value depreciates by around 27.4%, the collateral coverage ratio could reach the 130% margin call level. As of September 14, no collateral calls, mandatory repayments, or liquidation events have taken place under the agreement. USBC's debt level is assessed as moderate, although short-term obligations surpass liquid assets.

The company is currently rated as overvalued, with 8 additional ProTips provided for further analysis. The full agreement details are available in the company's transition report and SEC filing.