PowerCompute has refinanced and consolidated $18 million of existing debt into a Bitcoin-backed credit facility using 307 BTC as collateral, lowering its borrowing cost while keeping its Bitcoin treasury intact.
Summary
- PowerCompute has refinanced $18 million of debt through a Bitcoin backed credit facility using 307 BTC as collateral.
- The new loan replaces three existing facilities and lowers the initial interest rate to about 2% APR.
- The company said the refinancing lets it reduce borrowing costs without selling its Bitcoin holdings.
- The facility renews every 30 days with pricing reset according to market conditions.
- The refinancing comes as more companies use Bitcoin backed lending to unlock capital while retaining treasury exposure.
According to a press release issued by PowerCompute on Wednesday, 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 Aug. 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.
PowerCompute pledged 307 BTC from its treasury as collateral for the new loan. Rather than selling those holdings to reduce debt, the company is using them to secure financing while remaining exposed to any future appreciation in Bitcoin’s price.
PowerCompute has reduced borrowing costs with Bitcoin-backed refinancing
After first entering a bridge loan that temporarily consolidated its three debt facilities over a three-day period, PowerCompute said it signed a Bitcoin industry non-recourse collateral loan facility with Arch Lending on Aug. 3.
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.
PowerCompute said the facility initially carries an interest rate of about 2% APR. The company compared that with the 12% interest charged on its previous Liebel loans, saying the refinancing substantially lowers its financing costs and strengthens its capital structure.
Bruce M. Rodgers, the company’s chairman, chief executive officer and president, said the refinancing reduces interest expenses while allowing PowerCompute to keep strategic exposure to its Bitcoin treasury as it continues expanding into high-performance computing and artificial intelligence infrastructure.
Arch Lending has structured the facility around Bitcoin collateral
Arch Lending described the agreement as a Bitcoin-backed credit facility that incorporates a proprietary hedging structure intended to reduce liquidation risk while delivering lower financing costs.
Himanshu Sahay, co-founder and chief technology officer at Arch Lending, said the financing was designed around PowerCompute’s immediate funding needs while supporting its long-term Bitcoin treasury strategy. Instead of requiring the company to sell Bitcoin to repay debt, the structure allows it to refinance existing obligations while continuing to hold the asset.
PowerCompute nevertheless 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.
The company also noted in its forward-looking statements 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.
Bitcoin-backed corporate lending continues to gain traction
PowerCompute’s refinancing adds to a growing number of companies using Bitcoin as collateral instead of selling treasury holdings to raise capital.
Earlier this year, Benchmark analyst Mark Palmer said Metaplanet’s acquisition of Japanese brokerage Siiibo Securities could eventually support Bitcoin-backed corporate bonds through its newly formed Metaplanet Securities business. The proposal remains under development, but the company has outlined plans to create Bitcoin-linked debt products that could later settle onchain while using its regulated securities platform in Japan.
Institutional lending activity has also accelerated over the past two years. 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. At the time, the lender said corporate treasuries, Bitcoin miners and trading firms were increasingly borrowing against Bitcoin instead of liquidating their holdings.
Coinbase also disclosed last year that its Bitcoin-backed lending service, built on the Morpho protocol through Base, had surpassed $1 billion in originations within roughly ten months of launch, illustrating continued institutional demand for crypto-collateralized financing.
Unlike conventional bank lending, Bitcoin-backed loans rely on digital assets rather than credit history as collateral. Such facilities are commonly over-collateralized to account for Bitcoin’s price volatility while allowing borrowers to access liquidity without immediately disposing of their holdings.
PowerCompute continues expanding beyond Bitcoin mining
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. Alongside its mining operations, it also runs a technology-enabled specialty finance business that provides funding to nonprofit community associations in Florida.
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 said it expects to reduce financing expenses while continuing to hold Bitcoin on its balance sheet under the new lending arrangement.
