PowerCompute, a Bitcoin mining and treasury firm, increased its debt by $3.765 million following an early Bitcoin collar reset involving 307 BTC. The executed schedule documents this unwind cost as an addition to the principal instead of a cash or USDC payment.
An Aug. 28 filing from the company revealed a replacement 30-day collar balance with Arch Lending totaling $21,892,131.88, which is up from the previous $18,127,131.88. The facility continues to be backed by 307 BTC, though its annual interest rate climbed from 2% to 6.5%.
How the Bitcoin collar reset raised principal
US Digital Mining and Hosting Co., the borrowing subsidiary of PowerCompute, opted to roll the unwind expense into the overall balance. According to the annex, this cost was agreed upon instead of requiring a separate excess-appreciation settlement for the concluded term.
The previous collar kicked off on Aug. 3 and was originally scheduled to reset on Sept. 2. PowerCompute terminated it early on Aug. 25—22 days into the cycle—at a reference price of $78,500. As noted in the prior reset confirmation, that figure exceeded the continuous $66,370 ceiling. The initial loan documentation held a balance of $18.13 million alongside a 2% rate.
Based on the contract’s 30/360 formula, the total interest expense for the new loan spanning Aug. 25 to Sept. 24 amounts to $118,582.38. While the master agreement contains longer-form text, the annex dictates the 30-day mechanics of the collar while its reset schedule provides the commercial figures.
The updated collar shifts the next evaluation date to Sept. 24, establishing a $71,112 floor, a $75,000 ceiling, and a $93,500 knock-in barrier. Arch will evaluate the reference price on a single occasion at 8:00 a.m. EST.
The ceiling has no impact if prices stay below $93,500. Under that threshold, PowerCompute retains all Bitcoin appreciation, even if the reference price climbs past $75,000. However, if the price hits or exceeds $93,500, the ceiling governs the entire period.
Excess appreciation only triggers if the Sept. 24 reference price hits at least $93,500. At that exact barrier, the calculation is:
307 × ($93,500 − $75,000) = $5,679,500
This equation represents conditional settlement arithmetic prior to interest rather than an immediate debt obligation. PowerCompute has the option to settle it via kept BTC, USD, or USDC. Alternatively, if it rolls the loan over, it can add the sum to the principal or fold it into the upcoming ceiling and rate quote.
This barrier functions independently of an intraday liquidation line. The annex prohibits standard margin calls and liquidations throughout the rolling term, restricts regular recourse to the pledged Bitcoin subject to specific carve-outs, and evaluates the collar solely during resets. Opting for a mid-term exit voluntarily would bring forward the evaluation.
CryptoSlate’s live Bitcoin tracker recorded a price of $77,808.23 at 2:23 a.m. UTC on Aug. 29, placing the barrier roughly 20.2% above that point in time. This comparison serves as background context rather than a price prediction for Sept. 24.
CryptoSlate previously reported on the original collar following its tracking of PowerCompute’s preceding chain of bridge loans. The filing from Aug. 28 turns the initial structure’s projected trade-off into a concrete financing expense while initiating a fresh 30-day evaluation.
