PowerCompute cuts debt rate to 2% with BTC-backed loan

PowerCompute refinanced $18M in debt with a Bitcoin-backed facility, using 307 BTC as collateral, cutting its interest rate from 12% to 2%, consolidating three loans, and retaining its Bitcoin holdings.

PowerCompute has consolidated $18 million of existing debt into a new Bitcoin-backed credit facility with Arch Lending, using 307 BTC from its treasury as collateral. This move replaces three previous loans: $11 million from Galaxy Digital, $5 million from SE and AJ Liebel for a 15-megawatt Oklahoma facility, and $2 million from Liebel for an 11-megawatt Mississippi facility. The refinancing reduces the interest rate from approximately 12% to 2% APR, significantly lowering borrowing costs without requiring PowerCompute to sell its Bitcoin holdings. The facility renews every 30 days, with pricing adjusted according to market conditions, and includes hedging strategies to minimize liquidation risk. PowerCompute stated that this restructuring supports its expansion into high-performance computing and artificial intelligence infrastructure, while maintaining exposure to potential Bitcoin appreciation. This transaction highlights a growing trend of companies leveraging Bitcoin as collateral to access liquidity while preserving their digital asset reserves.