PowerCompute adds $3.765M to loan after 307 BTC collar reset

PowerCompute’s borrowing unit, US Digital Mining and Hosting Co., added $3.765 million to principal when it ended and reset a 30-day collar around 307 BTC on Aug. 25. The replacement facility with Arch Lending records a new balance of $21,892,131.88 and an annual interest rate of 6.5%, up from 2% under the prior arrangement.

The prior collar began Aug. 3 and was scheduled to reset Sept. 2 but was terminated early on Aug. 25 at a reference price of $78,500. The prior loan balance was $18,127,131.88; the unwind cost was capitalized into principal rather than paid in cash or stablecoin.

The new 30-day collar sets a floor of $71,112, a ceiling of $75,000 and a knock-in barrier of $93,500. Arch Lending will test the reference price once at 8:00 a.m. Eastern on Sept. 24. If the Sept. 24 price is below $93,500, the $75,000 ceiling will not apply and PowerCompute retains any Bitcoin appreciation for the period.

If the Sept. 24 reference price is at or above $93,500, the ceiling applies to the entire period and a conditional settlement is calculated on all 307 BTC. The settlement at the knock-in level equals 307 × ($93,500 − $75,000) = $5,679,500 before interest. That amount is conditional and not currently owed.

Under the contract, PowerCompute may satisfy any excess-appreciation settlement by surrendering retained BTC, by paying in USD or USDC, or by adding the amount to principal if it rolls the loan. The replacement agreement uses a 30/360 interest calculation; the full interest charge for Aug. 25–Sept. 24 is $118,582.38.

The annex that governs the collar limits ordinary margin calls and liquidations during the rolling period and restricts recourse to the pledged Bitcoin except for specified carve-outs. The knock-in barrier is not an intraday liquidation threshold; a voluntary mid-period exit would advance the reference-price test.

A late-August price snapshot near $77,800 placed the $93,500 barrier about 20% above prevailing prices at that time. The replacement loan terms were filed on Aug. 28.