PowerCompute, a Bitcoin treasury and mining company, has added $3.765 million to its debt following an early Bitcoin collar reset involving 307 $BTC. The executed reset schedule records the unwind cost as additional principal rather than as a cash or $USDC payment.
In a filing dated Aug. 28, the company disclosed a replacement 30-day collar balance of $21,892,131.88 with Arch Lending, up from $18,127,131.88. The facility remains secured by 307 $BTC, while its annual interest rate has increased from 2% to 6.5%.
How PowerCompute’s Bitcoin collar reset increased principal
PowerCompute’s borrowing subsidiary, US Digital Mining and Hosting Co., elected to add the unwind cost to the loan balance. The annex states that the cost was agreed in place of a separate excess-appreciation settlement for the terminated period.
The previous collar began on Aug. 3 and was scheduled to reset on Sept. 2. PowerCompute terminated it on Aug. 25, 22 days into the period, when the reference price was $78,500. That price was above the company’s always-on $66,370 ceiling, according to the previous reset confirmation. The original loan filing reported an $18.13 million balance and a 2% interest rate.
Under the contract’s 30/360 calculation, the replacement loan’s full interest charge for the period from Aug. 25 to Sept. 24 is $118,582.38. The annex sets out the collar’s 30-day mechanics, while the reset schedule provides the commercial figures despite the longer-form provisions in the master agreement.
New Bitcoin collar terms run through Sept. 24
The new collar moves the next decision date to Sept. 24. It establishes a $71,112 floor, a $75,000 ceiling and a $93,500 knock-in barrier. Arch will test the reference price once, at 8:00 a.m. EST.
If the reference price remains below $93,500, the ceiling has no effect. PowerCompute retains all Bitcoin appreciation, including any appreciation above $75,000. If the reference price reaches or exceeds $93,500, however, the ceiling applies to the entire period.
Excess appreciation arises only if the Sept. 24 reference price reaches at least $93,500. At the barrier exactly, the settlement formula is:
307 × ($93,500 − $75,000) = $5,679,500
This is conditional settlement arithmetic before interest, not an amount that PowerCompute already owes. The company can settle the amount using retained $BTC or USD/$USDC. If it rolls the loan forward, it can instead add the amount to principal or incorporate it into the next ceiling and rate quote.
The $93,500 barrier is not an intraday liquidation threshold. The annex bars ordinary margin calls and liquidations during the rolling period, limits ordinary recourse to the pledged Bitcoin subject to stated carve-outs, and tests the collar only at reset. A voluntary exit before the end of the period would bring the test forward.
Bitcoin price context after the reset
At 2:23 a.m. UTC on Aug. 29, CryptoSlate’s live Bitcoin page displayed a price of $77,808.23, placing the barrier approximately 20.2% above that snapshot. The comparison provides context and is not a forecast for Bitcoin’s price on Sept. 24.
CryptoSlate previously covered PowerCompute’s initial collar after tracking the company’s earlier bridge-loan chain. The Aug. 28 filing turns the first structure’s modeled trade-off into a realized financing cost and begins a new 30-day test.
