PowerCompute has refinanced $18m (£13.7m) of existing debt through a new Bitcoin-backed credit facility, pledging 307 BTC as collateral while retaining its cryptocurrency treasury.
The Nasdaq-listed Bitcoin treasury and mining company completed the deal with Arch Lending after agreeing the arrangement on 27 July. It initially used a short-term bridge loan to bring together three separate borrowing facilities before moving to the final structure on 3 August.
The refinancing replaces an $11m loan from Galaxy Digital, a $5m loan from SE and AJ Liebel used to fund the purchase of PowerCompute’s 15-megawatt mining site in Oklahoma, and a further $2m Liebel loan that financed the acquisition of its 11-megawatt facility in Mississippi.
Rather than sell Bitcoin to repay those obligations, PowerCompute is using part of its holdings as security for the new facility. That means the company continues to have exposure to any future rise in Bitcoin’s value, although it also remains exposed to the risks associated with a fall in the cryptocurrency’s price.
The new arrangement is a non-recourse collateral loan facility aimed at the Bitcoin industry. It is revolving and renews every 30 days unless PowerCompute or Arch Lending gives notice that it does not wish to continue.
At every renewal, the interest rate, floor price and ceiling price will be reset to reflect market conditions. PowerCompute said the facility currently carries an annual percentage rate of about 2%, compared with the 12% interest charged on its former Liebel loans.
The company said the lower rate would substantially reduce its financing costs and improve the strength of its capital structure.
Bruce M. Rodgers, PowerCompute’s chairman, chief executive officer and president, said the refinancing would cut interest expenses while allowing the business to maintain strategic exposure to its Bitcoin treasury. The company is also continuing its expansion into high-performance computing and artificial intelligence infrastructure.
Arch Lending said its credit facility includes a proprietary hedging structure designed to reduce the risk of liquidation while providing the borrower with lower-cost finance.
Himanshu Sahay, co-founder and chief technology officer at Arch Lending, said the deal had been structured around PowerCompute’s short-term funding requirements while supporting its longer-term Bitcoin treasury strategy. The arrangement allows the company to refinance its existing debt without selling Bitcoin to meet its obligations.
PowerCompute warned, however, that a decline in the value of the pledged collateral could require it to provide additional Bitcoin under the terms of the loan.
The company also said its forward-looking plans remain subject to compliance with the facility’s conditions and to risks linked to cryptocurrency mining, its expansion into HPC and AI infrastructure, the availability of equipment, financing conditions and regulatory changes.
The transaction is the latest example of a company using Bitcoin holdings as collateral to raise capital rather than liquidating its treasury.
Earlier this year, Benchmark analyst Mark Palmer said Metaplanet’s purchase of Japanese brokerage Siiibo Securities could eventually help support Bitcoin-backed corporate bonds through the newly created Metaplanet Securities business. That proposal is still being developed, but Metaplanet has outlined plans to create Bitcoin-linked debt products that could later settle onchain through its regulated securities platform in Japan.
Institutional demand for Bitcoin-backed lending has also increased over the past two years. In October 2025, Two Prime Lending said it had issued $827m in Bitcoin-backed loans during the third quarter, taking its total lending volume above $2.55bn since the company launched in March 2024.
At the time, Two Prime said corporate treasuries, Bitcoin miners and trading firms were increasingly borrowing against Bitcoin instead of selling their holdings.
Coinbase disclosed last year that its Bitcoin-backed lending service, built on the Morpho protocol through Base, had generated more than $1bn in loans in roughly 10 months. The figure highlighted continued institutional demand for financing secured against digital assets.
Unlike traditional bank loans, Bitcoin-backed facilities use cryptocurrency rather than a borrower’s credit history as collateral. They are commonly over-collateralised because of Bitcoin’s price volatility, allowing companies to access liquidity without immediately disposing of their holdings.
Founded in 2008 and headquartered in Tampa, Florida, PowerCompute describes itself as a Bitcoin treasury, mining and specialty finance company. It currently operates 26 megawatts of wholly owned power infrastructure across its Oklahoma and Mississippi sites.
In addition to its mining operations, the company runs a technology-enabled specialty finance business that provides funding to nonprofit community associations in Florida.
The refinancing follows a period in which PowerCompute has been reshaping its balance sheet while developing computing infrastructure beyond cryptocurrency mining. It said replacing higher-cost borrowing with the Bitcoin-backed facility should reduce financing expenses while allowing it to continue holding Bitcoin on its balance sheet.
