PowerCompute Just Gambled 307 BTC on a Single 30‑Day Reset
The short version: they reset a collar and added debt
PowerCompute — a Bitcoin mining and treasury outfit — just wrapped an early reset on a 30‑day collar that used 307 BTC as collateral. The early unwind added about $3,765,000 to the loan balance, bringing the replacement facility to $21,892,131.88 (up from $18,127,131.88). Instead of being booked as a cash payout, the unwind cost was rolled into principal.
The interest rate on the facility jumped from 2% to 6.5% as part of the new arrangement. The original collar began on August 3 and was scheduled to reset on September 2, but PowerCompute ended it early on August 25 after a reference price of $78,500. Under the replacement deal the full interest for the Aug. 25 to Sept. 24 period (using a 30/360 calculation) is $118,582.38.
The math, the reset and what might happen next
The new 30‑day collar moves the next decision date to September 24. The mechanics are simple-ish: the agreement sets a $71,112 floor, a $75,000 ceiling and a $93,500 knock‑in barrier. The lender will check the reference price once at 8:00 a.m. EST on the reset date and decide what happens next.
If the reference price stays below $93,500 the ceiling doesn’t kick in — PowerCompute keeps any Bitcoin upside above $75,000 for that period. Only when the reference price hits or exceeds $93,500 does an excess‑appreciation settlement come into play. At exactly the barrier the conditional settlement would be calculated as 307 × ($93,500 − $75,000), which equals $5,679,500. That number is a conditional settlement before interest — it isn’t an amount already owed — and can be settled in BTC or in USD/USDC. If PowerCompute rolls the loan, it can also add the amount to principal or fold it into the next ceiling and rate quote.
Importantly, this knock‑in barrier is not an intraday liquidation trigger. The annex to the loan forbids ordinary margin calls and liquidations during the rolling period and limits recourse to the pledged Bitcoin except for specific carve‑outs; the collar is only tested at the reset unless PowerCompute voluntarily exits earlier, which would bring the test forward.
For a price reality check: on Aug. 29 at 02:23 UTC the spot Bitcoin price was about $77,808.23 — roughly 20% below the $93,500 barrier. That’s context, not a prediction. Bottom line: PowerCompute has effectively staked a big slice of its treasury on the outcome of a single 30‑day price snapshot. If the reset lands favorably they keep upside; if it doesn’t, they face bigger interest, a larger principal balance, or a conditional settlement that could be significant.
