PowerCompute, Inc. Announces Bitcoin‑Collateralized 30‑Day Collar Loan

What Happened
PowerCompute, through its subsidiary US Digital Mining and Hosting Co., LLC, announced on Aug 5, 2026 (Loan Agreement dated Aug 3, 2026) that it entered a new non‑recourse, collared, 30‑day rolling loan facility with ChainFi Inc. d/b/a Arch Lending. The borrower drew an initial collar loan secured by 307 Bitcoin (BTC) and bearing interest of 2.0% per annum; the proceeds were used to pay off bridge loans the company had with Arch from July 27, 2026. The promissory note filed as an exhibit lists principal of approximately $18,127,131.88.

Key Details

• Borrower: US Digital Mining & Hosting Co., LLC (PowerCompute wholly owned subsidiary). Lender: ChainFi Inc. d/b/a Arch Lending. Loan Agreement entered Aug 3, 2026.
• Collateral: 307 Bitcoin. Initial loan described in exhibits as ≈ $18.13 million principal; interest rate 2.0% per annum.
• Structure: 30‑day rolling “Collar Loan” that automatically renews unless either party gives non‑renewal notice; at each rollover the interest rate and the collar floor/ceiling prices are reset to market conditions.
• Maturity mechanics: if the BTC reference price is below the agreed floor at maturity, the agreement provides options (including walking away or curing the shortfall to roll the loan). The Loan Agreement includes customary representations, covenants and events of default. Press release filed Aug 5, 2026 (Exhibit 99.1); loan documents filed as Exhibits 10.1 and 10.2.

Why It Matters
This facility provides short‑term liquidity secured by the company’s Bitcoin holdings and replaces prior bridge financing, which reduces near‑term financing uncertainty. Because the loan is collateralized by BTC and uses a collar (floor/ceiling), the company’s repayment profile and potential loss of collateral are tied to Bitcoin price movements and to the collar terms reset every 30 days. Investors should note the non‑recourse, rolling nature of the loan and the periodic reset of pricing terms when assessing PowerCompute’s liquidity and exposure to cryptocurrency price volatility.