Nasdaq-listed Bitcoin mining company PowerCompute has consolidated its three existing debt facilities totaling $18 million under a new Bitcoin-backed credit facility with Arch Lending.
PowerCompute pledged 307 Bitcoin (BTC) from its treasury as collateral. The company entered an initial bridge loan with Arch on July 27 before entering into the new facility on Monday, according to a Wednesday press release shared with Cointelegraph.
The new facility replaced PowerCompute’s previous $11 million loan from Galaxy Digital, a $5 million loan from SE and AJ Liebel used to purchase a 15-megawatt Oklahoma facility and another $2 million loan from Liebel used to purchase an 11-megawatt Mississippi facility.
The new facility initially carries an interest rate of about 2% APR, compared with 12% on the two Liebel loans, which totaled $7 million. The rate is reset at each 30-day rollover based on prevailing market conditions.
The arrangement allows PowerCompute to retain its Bitcoin exposure, but the company may be required to post additional collateral if Bitcoin’s price declines.