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PowerCompute consolidates $18M debt into Bitcoin-backed credit line

The facility carries an initial rate of about 2% APR and uses 307 BTC from PowerCompute's treasury as collateral.

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Cointelegraph reports that Nasdaq-listed Bitcoin mining company PowerCompute refinanced $18 million of existing debt by consolidating three facilities into a new Bitcoin-backed credit line with Arch Lending.

PowerCompute pledged 307 Bitcoin from its treasury as collateral, after entering an initial bridge loan with Arch on July 27 and moving into the new facility on Monday, according to a Wednesday press release shared with Cointelegraph.

The new facility replaced prior loans including an $11 million credit line from Galaxy Digital and smaller borrowings tied to the purchase of a 15-megawatt Oklahoma facility and an 11-megawatt Mississippi facility.

The arrangement initially carries an interest rate of about 2% APR, versus 12% on the two Liebel loans totaling $7 million, with the rate reset at each 30-day rollover based on market conditions, and PowerCompute may need to post additional collateral if Bitcoin's price falls.

Latest closeBitcoin $64,613.90 ▲0.0%|Nasdaq Comp. 26,363.44 ▼0.8%

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