Bitcoin Mining Company Refinances Three Prior Facilities Into Arch Lending Structure
PowerCompute will face its first monthly decision on 307 pledged Bitcoin on September 2, when its $18.13 million collar loan from Arch Lending reaches the end of its initial 30-day period and new terms apply based on Bitcoin price relative to two strike levels.
The collar structure refinances three existing facilities: an $11 million loan from Galaxy Digital at 0% annual rate, a $5 million loan from Liebel at 12%, and a $2 million loan from Liebel also at 12%. The new facility carries a 2% annual rate on the full $18.13 million balance, reducing borrowing costs on the $7 million portion that was previously charged at 12% under Liebel terms.
Under the collar mechanics, no margin call or liquidation occurs if Bitcoin crosses either strike price before the reset. The collar is tested only at reset time. On September 2 at 8:00 a.m. EST, Arch Lending will check Bitcoin’s reference price against two thresholds: $58,860 (floor) and $66,370 (ceiling).
Three Scenarios at Reset
If the reference price falls below $58,860, Arch may retain the pledged 307 BTC in full satisfaction of the $18.13 million debt with no deficiency claim. Alternatively, PowerCompute may repay the loan in full and recover all collateral.
If Bitcoin trades between $58,860 and $66,370, PowerCompute may either repay the loan and recover collateral or accept new terms and roll the position forward.
If Bitcoin trades above $66,370, the collar caps upside: Arch retains the excess appreciation above the ceiling, and PowerCompute may roll on new terms or repay.
PowerCompute must respond to the reset quote by 5:00 p.m. EST on September 2. If the company does not respond, the loan reaches automatic maturity rather than default. Arch must provide at least one business day’s notice before selling any pledged Bitcoin.
Collateral and Loan Terms
The 307 BTC pledged represent 92.33% loan-to-value against the $18.13 million facility. The executed balance stands at $18,127,131.88.
The collar avoids forcing PowerCompute to sell Bitcoin immediately if prices decline, but imposes a recurring repricing cycle and a hard settlement decision clock on each reset date. The structure transfers upside above $66,370 to the lender and creates a potential liquidation event if Bitcoin falls below $58,860 and PowerCompute cannot repay.
Disclosure Notes
Master-form disclosure lists 307.0003 BTC and a 92.54% original LTV, but the transaction annex states that disclosure does not govern the collar loan terms. The executed loan balance appears in both the 8-K exhibit table and the underlying agreement as $18,127,131.88.
