POWERCOMPUTE, INC. 8-K

What Happened

• PowerCompute, through its subsidiary US Digital Mining and Hosting Co, LLC, announced an $18 million bridge loan from ChainFi Inc. (d/b/a Arch Lending) dated July 27, 2026 to repay the company’s existing $18 million indebtedness to Galaxy Digital LLC and DE & AJ Liebel Limited Partnership. The Bridge Notes mature on July 31, 2026 and the company expects the maturity will be extended when it converts the Bridge Loan into a secured term loan to be secured by Bitcoin in the company’s treasury.

Key Details

• Lender: ChainFi Inc. (d/b/a Arch Lending); two promissory notes are filed as exhibits (Ex. 10.1 for $11,005,502.75 and Ex. 10.2 for $7,063,342.53).
• Purpose: Immediate repayment in full of prior $18M indebtedness to Galaxy Digital LLC and DE & AJ Liebel LP.
• Terms: Bridge Notes bear interest at the IRS Applicable Federal Rate, interest due at maturity; include customary covenants and a 15% per annum default interest rate.
• Other amendment: Third Amendment with Brown Family Enterprises extends the maturity of its loan to December 31, 2026 (filing references the loan amount).

Why It Matters

• The bridge loan provides near‑term liquidity and immediately retires prior creditors, but creates a short‑dated obligation that PowerCompute plans to convert into a secured term loan. Investors should note the company intends to secure the anticipated term loan with Bitcoin held in its treasury, which could affect the company’s asset availability and risk profile.
• The Bridge Notes’ short maturity and high default interest (15% p.a.) mean timely refinancing or extension is material to avoid elevated financing costs or default risk. Monitor future filings for final terms of the secured term loan and any disclosures about pledging treasury Bitcoin.