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Bitcoin treasury firm adds $3.77M to debt after collar unwind
PowerCompute disclosed a replacement 30 day collar balance of $21.89 million with Arch Lending, with its interest rate rising to 6.5% from 2%.
PowerCompute, a Bitcoin treasury and mining company, disclosed that it added $3.765 million to its debt after an early unwind of a 30 day Bitcoin collar tied to 307 BTC, according to a filing covered by CryptoSlate.
The company said the Aug. 25 unwind cost was capitalized into principal rather than paid in cash or USDC, and it set a $21,892,131.88 replacement 30 day collar balance with Arch Lending, up from $18,127,131.88.
CryptoSlate reports that the facility remains secured by 307 BTC, but the annual interest rate increased to 6.5% from 2%, and the replacement loan’s Aug. 25 to Sept. 24 interest bill totals $118,582.38 under the contract’s 30/360 calculation.
The new collar shifts the next test to Sept. 24, with a $71,112 floor, a $75,000 ceiling, and a $93,500 knock in barrier, where the ceiling only becomes relevant at or above the barrier level during the period.
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