PowerCompute bet 97% of its BTC treasury on a 4-day loan — then went silent

On July 27, publicly traded miner PowerCompute (Nasdaq: PWCM), the parent of US Digital Mining, signed two notes with lender Arch Lending totaling $18,068,845 — a bridge loan with a four-day term, collateralized by Bitcoin. For a company whose entire BTC treasury was valued at $18.6 million at the end of June, that meant putting up roughly 97% of its reserve value all at once.

The timeline runs like this: July 27 — two notes signed for $11.01 million and $7.06 million; July 31 — the loan's formal maturity date; August 1, 5 p.m. ET — the payment deadline, after which a 15% annual default rate kicks in. The stated purpose of the loan was to retire debt owed to Galaxy Digital and to Liebel-related entities, and to bridge into a longer-term facility from the same lender, Arch Lending.

• PowerCompute's BTC treasury as of June 30: 318.3 BTC (~$18.6M) — of which 174 BTC sits with Galaxy Digital and roughly 112.7 BTC is tied to Liebel debt
• Bridge loan size: $18,068,845.28 — 97% of the company's entire treasury value as of the reporting date
• Payment deadline: August 1, 5 p.m. ET; missing it triggers a 15% annual default rate

Here's where it gets interesting — first flagged by CryptoSlate: as of August 3 — two days past the deadline — the company has filed nothing new with the SEC. No press release on repayment, no default announcement, no news of an extension. PowerCompute's last public statement is dated July 29, before the deadline even arrived. For a debt equal to 97% of the company's entire Bitcoin treasury, going two days without any public reaction at all is unusual on its own — even a routine extension is normally logged as its own filing rather than passing unnoticed.

The story fits a broader pattern of financial pressure on public miners this year: we previously covered how two UK bitcoin treasury firms started selling coins in the same week, while falling yields have already pushed some miners into operating at a loss even before network difficulty adjusted downward. PowerCompute isn't an exception to that pattern so much as a sharper case of it — just on a much tighter deadline.

Until the company confirms either a successful close of the bridge or its failure, any read on this is a guess, not a fact. But the fact that the market is learning about a loan equal to 97% of treasury value — and its deadline — only from SEC paperwork, not from the company's own statements, is reason enough to watch PowerCompute's next filing more closely than usual.

This piece is informational, not a recommendation to buy, sell, or hold any asset.