PowerCompute risks entire Bitcoin reserve on high-stakes 30-day price bet

Bitcoin miner bets 307 BTC on a single price check

PowerCompute, a Bitcoin mining and treasury company, has tied its entire 307 BTC reserve (worth about $24 million at current prices) to a single price test on September 24. The company restructured its loan with Arch Lending, adding $3.765 million in costs to its debt and raising its interest rate from 2% to 6.5%.

The deal works like a bet: if Bitcoin’s price hits or exceeds $93,500 on that date, PowerCompute must pay a $5.68 million settlement—or add it to its debt. If the price stays below $93,500, the company keeps any Bitcoin gains above $75,000 and owes nothing extra.

Bitcoin, a digital currency secured by a decentralized network called a blockchain, is known for its price swings. This kind of loan, called a collar, limits both risk and reward by setting price floors and ceilings.

Key numbers from the deal

• 307 BTC pledged as collateral (≈$24M at $78,112/BTC).
• $21.89M loan balance, up from $18.13M after adding unwind costs.
• 6.5% annual interest rate, up from 2%.
• $93,500 trigger price for the $5.68M settlement (20% above Bitcoin’s late-August level).
• September 24, 8:00 a.m. EST: single price check decides the outcome.

How the Bitcoin collar works

The loan’s terms set three key price levels for the September 24 test:

• $71,112 floor: If Bitcoin falls below this, PowerCompute can hand over its 307 BTC to clear the debt.
• $75,000 ceiling: Normally caps gains, but only activates if Bitcoin reaches the $93,500 barrier.
• $93,500 knock-in barrier: If Bitcoin hits or exceeds this, the ceiling applies retroactively, and PowerCompute owes the $5.68M settlement (calculated as 307 × [$93,500 − $75,000]).

Below $93,500, PowerCompute keeps all Bitcoin appreciation above $75,000. The company can pay the settlement in Bitcoin, cash, or add it to the loan balance.

Why this matters for crypto borrowers

PowerCompute’s move shows how Bitcoin miners and treasuries use complex loans to manage risk—and take big gambles. The company’s earlier loans, including a 4-day bridge loan for nearly its entire BTC reserve, highlight the high stakes in crypto-backed lending.

If Bitcoin’s price surges past $93,500, the $5.68M cost could strain the company. If it falls below $71,112, PowerCompute might lose its 307 BTC to the lender. The deal also blocks ordinary margin calls during the 30-day period, giving the company breathing room—but only until the September test.

What happens next

The single price check on September 24 at 8:00 a.m. EST will decide the outcome. Possible results:

• Bitcoin ≥ $93,500: PowerCompute owes $5.68M (or adds it to debt).
• $71,112 ≤ Bitcoin < $93,500: No extra payment; loan continues or resets.
• Bitcoin < $71,112: Lender can take the 307 BTC to cover the debt.

The company can also choose to extend the loan, rolling the settlement cost into a new agreement.

Sources

• CryptoSlate: One mid-tier Bitcoin treasury just gambled its entire BTC reserve on a single 30-day reset price
• SEC Filing: PowerCompute Aug. 28 collar reset disclosure