According to a press release from PowerCompute, the Nasdaq-listed Bitcoin treasury and mining company completed the refinancing through a new facility from Arch Lending after first signing an agreement on July 27 and using a short-term bridge loan to combine its three outstanding loans before moving into the final structure on August 3. The transaction replaces an $11 million loan from Galaxy Digital, a $5 million loan from SE and AJ Liebel that financed the purchase of the company's 15-megawatt Oklahoma mining site, and another $2 million loan from SE and AJ Liebel used to acquire its 11-megawatt Mississippi facility. The refinancing consolidates loans that had been tied to specific mining-asset purchases into a single credit line under one agreement, as reported by Globenewswire.
The new Bitcoin-backed credit facility carries an initial interest rate of approximately 2% APR, significantly lower than the 12% interest charged on the company's previous Liebel loans. As reported by PowerCompute, the revolving facility renews every 30 days unless either party provides notice that it will not continue. At each renewal, the interest rate, floor price and ceiling price are reset according to prevailing market conditions. The company pledged 307 BTC from its treasury as collateral for the new loan, allowing it to retain those coins rather than selling them to service the debt. The loan structure ties repayment terms to the value of the digital asset, with lenders gaining security linked to Bitcoin while borrowers assume price risk through collateral requirements and potential margin calls.
According to PowerCompute, the refinancing reduces interest expenses while allowing the company to retain strategic exposure to its Bitcoin treasury as it continues expanding into high-performance computing and artificial intelligence infrastructure. However, the company disclosed that the facility carries risks tied to Bitcoin's market price. If the value of the collateral declines, the company may be required to post additional Bitcoin under the loan terms or face lender remedies. The company also noted that the facility remains subject to ongoing compliance with its conditions alongside risks associated with cryptocurrency mining, expansion into HPC and AI infrastructure, equipment availability, financing conditions and changing regulations.
The refinancing adds to a growing number of companies using Bitcoin as collateral instead of selling treasury holdings to raise capital. According to Benchmark analyst Mark Palmer, earlier this year, Metaplanet's acquisition of Japanese brokerage Siiibo Securities could eventually support Bitcoin-backed corporate bonds. In October 2025, Two Prime Lending said it issued $827 million in Bitcoin-backed loans during the third quarter, lifting its cumulative lending volume above $2.55 billion since launching in March 2024. Coinbase also disclosed that its Bitcoin-backed lending service had surpassed $1 billion in originations within roughly ten months of launch. The trend reflects increasing miner activity in diversified technology sectors, as reported by KuCoin.
Founded in 2008 and headquartered in Tampa, Florida, PowerCompute describes itself as a Bitcoin treasury, mining and specialty finance company that is expanding into HPC and AI infrastructure. The company currently operates 26 megawatts of wholly owned power infrastructure across its Oklahoma and Mississippi facilities. According to the company, the refinancing follows a period during which PowerCompute has been repositioning its balance sheet while developing computing infrastructure beyond cryptocurrency mining. By replacing higher-cost debt with a Bitcoin-backed facility, the company expects to reduce financing expenses while continuing to hold Bitcoin on its balance sheet under the new lending arrangement, with the refinancing specifically supporting its transition into high-performance computing and AI infrastructure. As of August 6, 2026, PowerCompute trades on NASDAQ under the ticker PWCM with a stock price of $1.5194.
