PowerCompute Refinances $18M Debt With Bitcoin-Backed Loan at 2% Interest Rate

Aug 6, 2026

PowerCompute, Inc. has consolidated $18 million of existing debt into a single Bitcoin-backed credit facility with Arch Lending. Pledging 307 Bitcoin from its treasury as collateral, the company secured an initial interest rate of approximately 2% APR, significantly lower than the 12% APR on its prior loans. The transaction replaces an $11 million loan from Galaxy Digital and two loans totaling $7 million from SE and AJ Liebel, allowing PowerCompute to maintain its Bitcoin exposure while lowering interest expenses.

PowerCompute Arch Lending refinancing

▪PowerCompute, Inc. entered into an initial bridge loan with Arch Lending on July 27, 2026 before transitioning into the new non-recourse collateral loan facility on August 3, 2026.
▪PowerCompute, Inc. signed an agreement on July 27, 2026 to refinance and consolidate three existing debt facilities totaling $18 million through a new debt facility with Arch Lending.

Bitcoin-backed loan structure

▪The Arch Lending facility incorporates a proprietary hedging structure designed by Arch Lending to reduce liquidation risk and provide an accretive financing cost.
▪The Arch Lending facility is a Bitcoin-backed credit facility with a revolving 30-day term that automatically rolls over unless either party provides notice of non-renewal.

Interest rate reduction

▪The new Arch Lending facility carries an initial interest rate of approximately 2% APR, which is reset at each 30-day rollover based on prevailing market conditions.
▪The initial 2% APR interest rate on the Arch Lending facility is substantially lower than the 12% APR carried by the two prior loans from SE and AJ Liebel.

307 BTC collateral pledge

▪Under the Arch Lending agreement, PowerCompute, Inc. may be required to post additional collateral if the market price of Bitcoin declines.
▪PowerCompute, Inc. pledged 307 Bitcoin from its treasury as collateral for the new Arch Lending credit facility.

Debt consolidation from lenders

▪The replaced loans from SE and AJ Liebel included a $5 million loan for a 15-megawatt Oklahoma facility and a $2 million loan for an 11-megawatt Mississippi facility.
▪The new Arch Lending facility replaces an $11 million loan from Galaxy Digital and two loans from SE and AJ Liebel totaling $7 million.