PowerCompute bridge covered 97% of BTC; deadline passed

PowerCompute’s US Digital unit borrowed $18,068,845.28 from Arch Lending under two bridge notes signed on July 27. The notes had a listed maturity date of July 31 and allowed payment through 5 p.m. ET on Aug. 1. Proceeds were identified as intended to repay loans from Galaxy Digital and Liebel while a Bitcoin-secured term facility was being finalized.

The two notes carry principals of $11,005,502.75 and $7,063,342.53. PowerCompute’s 8-K rounded the aggregate to $18 million. The exact principal equals about 97% of the $18.6 million value the company assigned to its entire Bitcoin treasury at June 30.

PowerCompute reported holding 318.3 BTC at June 30. That total included 174 BTC that Galaxy held under an existing loan facility as of that date. Earlier filings show two Liebel loans of $7 million were secured by roughly 112.7 BTC in restricted custody; the July filing lists the creditor as “DE & AJ Liebel,” a different naming than prior documents.

The bridge documents include a 15% annual default interest rate. Public filings do not indicate whether that rate has been applied. The company also did not disclose the Arch term facility’s documents, the amount of Bitcoin to secure it, the loan-to-value ratio, margin-call thresholds, liquidation terms, maturity or pricing.

PowerCompute’s public filing record contains no subsequent SEC submission or investor-relations release clarifying whether Galaxy and Liebel collateral were returned to PowerCompute, transferred to Arch, or restructured in another way. The contractual payment cutoff passed without a public disclosure of a completed refinancing, an extension, or an event of default.

PowerCompute described the bridge as a short-term measure to cover existing creditor obligations while it arranged a longer-term, Bitcoin-backed facility. Until the company files further disclosures specifying whether the term facility closed and which Bitcoin serve as collateral, the June 30 BTC total cannot be confirmed as unencumbered liquidity.

The bridge provided a four-day window between signing and listed maturity. Public investor-relations channels showed no updates after late July about the refinancing’s completion. Analysts and stakeholders will rely on any future filings for details on collateral allocation and the status of the anticipated Arch facility.