One mid-tier Bitcoin treasury just gambled its entire BTC reserve on a single 30-day reset price

PowerCompute, a Bitcoin treasury and mining company, added $3.765 million to its debt after an early Bitcoin collar reset involving 307 BTC. The executed schedule records the unwind cost as added principal rather than cash or USDC.

The company’s Aug. 28 filing disclosed a $21,892,131.88 replacement 30-day collar balance with Arch Lending, up from $18,127,131.88. The facility remains secured by 307 BTC, but its annual interest rate rose from 2% to 6.5%.

How the Bitcoin collar reset raised principal

PowerCompute’s borrowing subsidiary, US Digital Mining and Hosting Co., elected to add the unwind cost to the balance. The annex says the cost was agreed in place of any separate excess-appreciation settlement for the terminated period.

The prior collar began Aug. 3 and was due to reset Sept. 2. PowerCompute ended it Aug. 25, 22 days into the period, at a $78,500 reference price. That was above its always-on $66,370 ceiling, as shown in the prior reset confirmation. The original loan filing carried the $18.13 million balance and 2% rate.

The replacement loan’s full Aug. 25 to Sept. 24 interest bill is $118,582.38 under the contract’s 30/360 calculation. The annex governs the collar’s 30-day mechanics, while its reset schedule supplies the commercial figures despite longer-form language in the master agreement.

The new collar moves the next decision to Sept. 24. It sets a $71,112 floor, a $75,000 ceiling and a $93,500 knock-in barrier. Arch will test the reference price once, at 8:00 a.m. EST.

Below $93,500, the ceiling has no effect. PowerCompute keeps all Bitcoin appreciation, even if the reference price is above $75,000. At or above $93,500, however, the ceiling applies to the whole period.

Only if the Sept. 24 reference price reaches at least $93,500 does excess appreciation arise. At the barrier exactly, the formula is:

307 × ($93,500 − $75,000) = $5,679,500

That is conditional settlement arithmetic before interest, not an amount already owed. PowerCompute can settle it through retained BTC or USD/USDC. If it rolls the loan, it can instead add the amount to principal or incorporate it into the next ceiling and rate quote.

The barrier is not an intraday liquidation line. The annex bars ordinary margin calls and liquidations during the rolling period, limits ordinary recourse to the pledged Bitcoin subject to stated carve-outs and tests the collar only at reset. A voluntary mid-period exit would bring the test forward.

At 2:23 a.m. UTC on Aug. 29, CryptoSlate’s live Bitcoin page displayed $77,808.23, putting the barrier about 20.2% above that snapshot. The comparison is context, not a Sept. 24 price forecast.

CryptoSlate covered the initial collar after tracking PowerCompute’s earlier bridge-loan chain. The Aug. 28 filing converts the first structure’s modeled trade-off into a realized financing cost and starts a new 30-day test.