PowerCompute refinanced three facilities into an $18,127,131.88 collar loan secured by 307 BTC at an initial 2% annual rate with a Sept. 2 monthly reset and an LTV of about 92.33%, using a reference-price collar with a $58,860 floor and $66,370 ceiling and no margin calls during the initial period. The deal cuts interest versus prior 12% tranches and avoids immediate sales, but the high LTV and single monthly reset concentrate collateral and liquidation risk—Arch can keep the BTC if price is below the floor at reset—creating funding risk for the Bitcoin treasury and lenders in this crypto lending structure.

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PowerCompute will face its first monthly decision on 307 pledged BTC on Sept. 2, when its $18.13 million loan from Arch Lending reaches the end of its initial 30-day period. The Bitcoin treasury and mining company refinanced three existing facilities into the collar loan at an initial 2% annual rate, avoiding an immediate sale of the coins but accepting a recurring repricing and settlement clock.

The filed Reset Confirmation sets an 8:00 a.m. EST reference-price check against a $58,860 floor and $66,370 ceiling. PowerCompute then has until 5:00 p.m. EST to accept a new quote or close out. For any new period, the floor and ceiling will be re-struck from the reset reference price, while the annual rate will be re-quoted.

The timing is the structure’s central protection and risk. Price and LTV moves during the initial period trigger no margin call or liquidation, even if Bitcoin crosses either strike before Sept. 2. The collar is tested only at the reset time, shifting the pressure from daily price moves to a monthly financing choice.

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If the reference price is below $58,860, PowerCompute may let Arch keep the pledged BTC in full satisfaction of the debt, with no deficiency claim. It can instead repay and recover all the Bitcoin. To roll, it must elect by 5:00 p.m. and eliminate the quoted shortfall during the following 24-hour Cure Period by adding Bitcoin, paying down principal or combining both.

A price between $58,860 and $66,370 lets PowerCompute repay the secured obligations, including accrued interest, and recover the collateral, or roll on newly quoted terms. Above $66,370, its upside for the ending period is capped. Arch receives the excess appreciation through retained Bitcoin or USD/USDC on closeout; a roll can instead add it to principal or reflect it in the new ceiling-and-rate quote.

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No response produces automatic maturity rather than a default. Below the floor, Arch keeps the BTC. At or above the floor, Arch may sell enough Bitcoin to discharge the secured obligations and separately settle any excess appreciation before returning the balance or surplus. Arch must give at least one business day’s notice before a sale, and PowerCompute may repay first.

The operative schedule records 307 BTC and an applicable LTV of 92.33%. A master-form disclosure separately lists an estimated 307.0003 BTC and a 92.54% “Original LTV,” but the annex says that disclosure does not govern the collar loan.

The executed balance is $18,127,131.88. Although the 8-K narrative shows an apparent truncation at $18,127.88, its exhibit table and the agreement carry the larger figure. The ledger records $18,068,845.28 of retired principal plus $58,286.60 of prorated existing interest, with no additional cash disbursed to PowerCompute.

The refinancing replaced an $11 million Galaxy Digital loan and two Liebel loans of $5 million and $2 million, according to PowerCompute’s filed release. A Dec. 31, 2025 debt table listed Galaxy at 0% and both Liebel loans at 12%. The new 2% initial rate applies to the full facility, but the release’s 12%-to-2% comparison covers only the $7 million Liebel portion.