PowerCompute adds $3.765 million to debt after 307-BTC collar reset

  • PowerCompute added $3.765 million to debt after resetting a collar secured by 307 BTC.
  • The replacement balance rose to $21,892,131.88, while annual interest increased from 2% to 6.5%.
  • The new collar runs Aug. 25-Sept. 24 and includes a $93,500 knock-in barrier.

PowerCompute, a Bitcoin treasury and mining company, added $3.765 million to debt after ending and resetting a Bitcoin collar involving 307 BTC. Its Aug. 28 filing shows the replacement 30-day collar balance with Arch Lending rose to $21,892,131.88 from $18,127,131.88, with the unwind cost added to principal instead of being paid in cash or USDC. The facility remains secured by 307 BTC, while the annual interest rate increased from 2% to 6.5%. PowerCompute ended the prior collar on Aug. 25, 22 days into a period that began Aug. 3 and was scheduled to reset Sept. 2. The termination used a $78,500 reference price, above the always-on $66,370 ceiling. The new collar runs from Aug. 25 to Sept. 24 and carries a $71,112 floor, a $75,000 ceiling and a $93,500 knock-in barrier. Arch Lending will test the reference price once, at 8:00 a.m. EST. If the Sept. 24 reference price reaches at least $93,500, excess appreciation can arise; at the barrier, the conditional settlement calculation is 307 × ($93,500 − $75,000), or $5,679,500, before interest. That amount is not currently owed and can be settled in retained BTC or USD/USDC. If Bitcoin falls below $58,860, the structure provides for PowerCompute to deliver 307 BTC and retire $18 million in debt. If PowerCompute rolls the loan, it can add the settlement amount to principal or include it in the next ceiling and rate quote. The replacement loan’s full Aug. 25-to-Sept. 24 interest bill is $118,582.38 under the contract’s 30/360 calculation. The annex bars ordinary margin calls and liquidations during the rolling period, limits ordinary recourse to the pledged Bitcoin subject to stated carve-outs, and tests the collar only at reset, although a voluntary mid-period exit would bring the test forward. At 2:23 a.m. UTC on Aug. 29, CryptoSlate displayed Bitcoin at $77,808.23, placing the barrier about 20.2% above that snapshot; the comparison is context rather than a Sept. 24 forecast. The filing turns the first structure’s modeled trade-off into a realized financing cost and begins a new 30-day test.

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PowerCompute adds $3.765 million to debt after 307-BTC collar reset - CoinPost Terminal