PowerCompute repays $22.45m loan using Bitcoin, cuts secured debt to $1.25m

PowerCompute mined 8.1 BTC in September, up 37% year over year and slightly above August output, while sharply reducing its Bitcoin treasury to retire secured debt.

Production and Operations

• September production: 8.1 BTC, up from 5.9 BTC a year earlier and 7.9 BTC in August.
• Infrastructure: 26 MW interconnected capacity across Oklahoma and Mississippi.
• Strategic focus: exploring high-performance computing and AI infrastructure alongside mining.

Treasury and Debt Actions

• Month-end Bitcoin holdings: 63.7 BTC, down from 323.02 BTC at end-August.
• Debt settlement: used 267.4 BTC to retire principal and accrued interest on a Bitcoin-backed credit facility with Arch, eliminating approximately $22.45 million of obligations and releasing collateral.
• Secured debt reduction: from roughly $23.7 million to $1.25 million.
• Remaining borrowing: not secured by Bitcoin.

Implications for Balance Sheet and Strategy

• Trade-off: reduced Bitcoin treasury in exchange for substantially lower leverage and unencumbered holdings.
• Context: Bitcoin balances often signal strength, but encumbrances limit flexibility. Lower leverage reduces risk when BTC prices or mining economics weaken.

Power Market Revenues

• Energy sales: about $89,000 in September from selling power back to the grid during heat-driven curtailment.
• Q3 energy sales total: roughly $312,000.
• Economics: flexible power management can outperform continuous mining when electricity prices exceed the value of BTC produced.

Overall Position

• The company now holds fewer BTC with materially less secured debt attached.
• Strategy spans Bitcoin production, power-market optimization, debt reduction, and potential data-center expansion.