PowerCompute's US Digital subsidiary borrowed about $18.07 million from Arch Lending under two bridge notes that permitted payment until 5 p.m. ET on Aug. 1. That cutoff has passed with no disclosed default, extension, or completed refinancing, and the principal equaled roughly 97% of the value PowerCompute assigned to its entire Bitcoin treasury at June 30.
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 carried a listed July 31 maturity, four days after signing, and permitted payment until 5 p.m. ET on Aug. 1. The proceeds were meant to fund full repayment of Galaxy Digital and Liebel debt while PowerCompute finalized an anticipated Bitcoin-secured term facility.
The deadline passed without disclosure
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, though the disclosure did not show that rate had been triggered.
The principal tracks almost the entire treasury
The 8-K rounded the bridge to an aggregate $18 million, but the first note carries $11,005,502.75 in principal and the second carries $7,063,342.53, together totaling $18,068,845.28. 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.
Collateral figures don't add up cleanly
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, and the July filing calls the creditor "DE & AJ Liebel," an unexplained naming discrepancy. Galaxy's collateral, which it may use or rehypothecate before returning the same type and quantity after full payment, increased from 145 BTC at Dec. 31 to 174 BTC at March 31.
PowerCompute said the anticipated Arch facility would be secured by Bitcoin in its treasury, but it did not disclose the Bitcoin amount, the loan-to-value ratio, the margin-call thresholds, the cure period, the liquidation terms, or the maturity and 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. 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.
Source: CryptoSlate
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