PowerCompute's $18M Bridge Loan Matures Amid Pending Refinancing and Unresolved Bitcoin Collateral

PowerCompute, a Bitcoin miner expanding into high-performance computing, disclosed that its US Digital subsidiary borrowed about $18.07 million from Arch Lending under two bridge notes signed July 27.

The notes had a listed July 31 maturity, four days after signing, and permitted payment until 5 p.m. ET on Aug. 1. The proceeds were intended to fund repayment in full of Galaxy Digital and Liebel debt while PowerCompute finalized an anticipated Bitcoin-secured term facility.

The disclosure landed on the listed maturity date with the term facility's documents still being finalized. As of press time, PowerCompute's live SEC submissions feed showed no filing after the July 31 8-K, while its investor-relations release feed showed no press release after July 29.

The contractual payment cutoff had passed, but the public record still did not establish a default, an extension, or a completed refinancing. The notes specify a 15% annual default interest rate, but the disclosure did not show that rate had been triggered.

The 8-K rounded the bridge to an aggregate $18 million. The first note carries $11,005,502.75 in principal and the second carries $7,063,342.53. Together they total $18,068,845.28, or $68,845.28 more than the rounded figure.

That exact principal was about 97% of the $18.6 million value PowerCompute assigned to its entire Bitcoin treasury at June 30. The company's June update and mining page reported 318.3 BTC at that date, including 174 BTC held by Galaxy for its loan facility.

The Liebel collateral figure comes from PowerCompute's first-quarter filing, which reported about 112.7 BTC in restricted custody for two SE & AJ Liebel loans totaling $7 million. The June update did not refresh that amount. The July filing calls the creditor “DE & AJ Liebel,” an unexplained naming discrepancy.

The first-quarter filing also said Galaxy could use or rehypothecate the pledged Bitcoin and had to return the same type and quantity after full payment. Galaxy collateral had increased from 145 BTC at Dec. 31, according to the company's annual report, to 174 BTC at March 31.

PowerCompute said the anticipated Arch facility would be secured by Bitcoin in its treasury. It did not disclose the Bitcoin amount, loan-to-value ratio, margin-call thresholds, cure period, liquidation terms, maturity or pricing. It also did not say whether the Bitcoin previously held for Galaxy and Liebel was returned to PowerCompute, transferred to Arch, or supplemented.

The collateral stack remains unresolved. The 15% default clause does not show whether the refinancing closed or the rate was triggered. Until PowerCompute discloses the refinancing outcome and the Bitcoin securing the Arch facility, its June 30 total of 318.3 BTC cannot be treated as a current measure of unencumbered liquidity.