PowerCompute cuts borrowing costs with Bitcoin collateral
Share
- PowerCompute said Bitcoin-backed financing cut its debt costs from 13.8% to 9.4%.
- The company said it refinanced US$100 million in debt using Bitcoin (CRYPTO:BTC) as collateral.
- The deal shows how some crypto mining and infrastructure companies are using digital assets to lower financing costs.
PowerCompute said it reduced its borrowing costs by using Bitcoin (CRYPTO:BTC) as collateral in a refinancing transaction.
The company said the refinancing lowered its debt cost from 13.8% to 9.4% on US$100 million of debt.
The transaction used Bitcoin-backed lending, where digital assets are pledged to secure a loan.
PowerCompute said the lower financing cost could improve cash flow and reduce interest expenses.
The company operates in Bitcoin mining and power infrastructure, making access to lower-cost capital an important factor.
The deal reflects growing use of Bitcoin-backed financing by crypto-related companies seeking alternatives to traditional borrowing.
