How PowerCompute’s $18.13M collar loan avoids margin calls

PowerCompute converted three existing facilities into an $18,127,131.88 collar loan from Arch Lending, pledging 307 BTC as collateral and paying an initial 2% annual rate. The loan’s first reset is scheduled for 8:00 a.m. EST on Sept. 2 and uses $58,860 as a floor and $66,370 as a ceiling; there are no margin calls or liquidations during the initial 30-day period.

The refinancing consolidated an $11 million loan from Galaxy Digital and two Liebel loans of $5 million and $2 million into the single secured collar facility. Company ledger entries show $18,068,845.28 of retired principal and $58,286.60 of prorated existing interest; no additional cash was disbursed as part of the transaction. A December 31, 2025 debt table listed the Galaxy loan at 0% and the two Liebel loans at 12%. The public comparison of 12% to 2% applies only to the $7 million in Liebel loans, while the 2% initial rate covers the full facility.

The operative schedule attached to the loan records 307 BTC pledged and an applicable loan-to-value of about 92.33%. A separate master-form disclosure lists 307.0003 BTC and a 92.54% “Original LTV,” but the loan annex states that master disclosure does not govern the collar loan.

Under the collar terms, Arch will check a reference price at 8:00 a.m. EST on Sept. 2 and compare it to the $58,860 floor and $66,370 ceiling. PowerCompute then has until 5:00 p.m. EST to accept a newly quoted rate and terms or to close the loan. For any subsequent rolled period, Arch will re-strike a new floor and ceiling from the reset reference price and re-quote the annual rate.

If the reference price at reset is below $58,860, Arch may take the pledged BTC in full satisfaction of the secured debt without making a deficiency claim against PowerCompute, or PowerCompute can repay to recover the coins. To roll the facility after a below-floor reset, PowerCompute must eliminate the quoted shortfall within a 24-hour Cure Period by adding BTC, paying down principal, or using a combination of both.

If the reference price falls between $58,860 and $66,370, PowerCompute can repay the secured obligations, including accrued interest, and retrieve the collateral, or it can roll the loan under newly quoted terms. If the reference price is above $66,370, excess appreciation for the ending period may be retained by Arch in BTC or USD/USDC on closeout; alternatively, a roll can reflect the appreciation in the new principal or in the revised ceiling-and-rate quote.

The documentation specifies consequences for inaction and for enforcement steps. A failure by PowerCompute to respond by the 5:00 p.m. deadline produces automatic maturity rather than a default. If the reference price is at or above the floor, Arch may sell enough Bitcoin to discharge the secured obligations and separately settle any surplus before returning any remaining balance. Arch must provide at least one business day’s notice before any sale, and PowerCompute retains the right to repay before liquidation.

The collar structure means price moves during the initial 30-day period will not trigger interim margin calls; settlement and repricing occur only at scheduled resets, and a 24-hour Cure Period applies if a reset produces a shortfall below the floor.