PowerCompute, a Nasdaq-listed bitcoin mining company trading under PWCM, has fully repaid and terminated its bitcoin-backed credit facility with Arch Lending, according to The Wall Street Journal. The facility was settled on its Sept. 24 reset date, with Arch selling about 267.3 BTC out of 307 pledged BTC to cover roughly $22.45 million in principal, interest, and fees. The remaining roughly 39.6 BTC was returned to the company. PowerCompute said the settlement was planned and was not triggered by a margin call or forced liquidation. After the repayment, the company’s secured debt fell from about $19.4 million at the end of June to about $1.25 million. As of Sept. 25, it held about 62 BTC. The company also said it will exit its leveraged bitcoin treasury strategy and instead use bitcoin as working capital for equipment purchases and expansion.
PowerCompute, a Nasdaq-listed bitcoin miner trading under PWCM, has fully repaid and terminated its bitcoin-backed credit line with Arch Lending, according to The Wall Street Journal.
Facility settled on Sept. 24 reset date
The credit facility was settled on its Sept. 24 reset date. Arch sold about 267.3 BTC out of 307 pledged BTC to repay roughly $22.45 million in principal, interest, and fees. The remaining roughly 39.6 BTC was returned to the company.
Company says settlement was planned
PowerCompute said the settlement was carried out as planned and was not the result of a margin call or a forced liquidation.
Secured debt drops to about $1.25 million
After the repayment, the company’s secured debt fell from about $19.4 million at the end of June to about $1.25 million. As of Sept. 25, PowerCompute held about 62 BTC.
Shift away from leveraged bitcoin treasury strategy
The company said it will exit its leveraged bitcoin treasury strategy. It plans to use bitcoin as working capital for equipment purchases and expansion.
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