PowerCompute has refinanced $18 million of debt through a Bitcoin-backed credit facility, reducing borrowing costs while keeping its Bitcoin treasury intact.
PowerCompute Refinances $18M Debt with 2% Bitcoin Loan
PowerCompute has refinanced $18 million in existing debt through a new Bitcoin-backed loan facility, marking a significant step in the company’s financial strategy. The Nasdaq-listed Bitcoin mining and infrastructure company is using 307 Bitcoin (BTC) as collateral to secure the new financing while lowering borrowing costs and maintaining ownership of its digital assets.
The refinancing was completed through a new credit facility provided by Arch Lending. The agreement replaces three separate debt facilities, including an $11 million loan from Galaxy Digital and two additional loans totaling $7 million that were previously used to finance the company’s mining operations in Oklahoma and Mississippi.
One of the biggest advantages of the new facility is its significantly lower borrowing cost. The Bitcoin-backed loan carries an initial annual percentage rate (APR) of approximately 2%, compared with the 12% interest rate on the previous Liebel loans. The lower financing cost is expected to reduce interest expenses and improve PowerCompute’s overall financial position.
Instead of selling Bitcoin to raise cash, PowerCompute has pledged 307 BTC as collateral for the loan. This approach enables the company to access liquidity while retaining exposure to any future appreciation in Bitcoin’s price. The strategy reflects a growing trend among Bitcoin-focused companies that use digital assets as collateral rather than liquidating their holdings.
The facility is structured as a non-recourse, 30-day revolving loan that automatically renews unless either party decides not to continue. At each renewal, the interest rate and collateral price thresholds will be adjusted according to prevailing market conditions. This structure provides flexibility while allowing the company to adapt to changes in the cryptocurrency market.
PowerCompute said the refinancing supports its long-term strategy of expanding beyond Bitcoin mining into high-performance computing (HPC) and artificial intelligence (AI) infrastructure. By lowering financing costs and preserving its Bitcoin treasury, the company aims to strengthen its balance sheet while continuing to invest in next-generation computing technologies.
The transaction also highlights the growing adoption of Bitcoin-backed lending within the corporate sector. As institutional interest in digital assets continues to rise, more companies are leveraging cryptocurrency holdings to secure financing without sacrificing long-term investment exposure. Analysts believe this financing model could become increasingly common among firms holding large Bitcoin reserves.
