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.
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