PowerCompute amends 8-K to disclose $18 million debt refinancing backed by 307 bitcoin
PWCM•Debt refinancing backed by Bitcoin collateral
PowerCompute filed an amended Form 8-K to update disclosure on its refinancing of $18 million of debt into a new Arch Lending facility.
The new Bitcoin-backed, non-recourse revolving facility uses 307 BTC as collateral with a 30-day term that auto-rolls unless non-renewed.
Interest cost drops to about 2% APR from 12% on the prior Liebel loans, cutting expense while avoiding an outright sale of Bitcoin holdings.
The structure resets the interest rate and hedge parameters at each rollover based on market conditions, aiming to reduce liquidation risk.
