PowerCompute Repays Arch Bitcoin-Backed Facility, Releases All Bitcoin Collateral and Achieves Approximately 94% Reduction in Total Debt

Repayment eliminates the facility's interest and collar-related expenses, while remaining secured debt matures December 31, 2026.

Rhea-AI Summary

PowerCompute (Nasdaq: PWCM) fully repaid its Arch Lending Bitcoin-backed facility on September 24, 2026, satisfying approximately $22.45 million of obligations. Arch sold approximately 267.3 pledged Bitcoin and returned approximately 39.6 Bitcoin, valued at approximately $3.3 million. No Bitcoin remains pledged. Total secured debt fell approximately 94% from approximately $19.4 million at June 30, 2026 to approximately $1.25 million; the remaining note matures December 31, 2026.

PowerCompute expects its Mississippi expansion and Oklahoma equipment upgrades to raise active mining computing power to approximately 964 PH/s, approximately 25% above June 30's approximately 771 PH/s. The Mississippi deployment uses approximately 3.5 MW of owned capacity not yet energized. PowerCompute intends to use Bitcoin as working capital rather than pursue a leveraged treasury strategy, while developing high-performance computing and AI capacity.

9 points · 2 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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1 major · 6 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointTotal secured debt fell approximately 94%, from approximately $19.4 million at June 30, 2026 to approximately $1.25 million.
• Major pointArch facility fully repaid and terminated September 24, 2026; no Bitcoin remains pledged.
• Moderate pointRepayment eliminates interest and collar-related expenses associated with the Arch and prior Galaxy facilities and Liebel loans.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Planned deployments target approximately 964 PH/s, approximately 25% above approximately 771 PH/s at June 30, 2026.
• Minor pointReturned collateral of approximately 39.6 Bitcoin was valued at approximately $3.3 million.

4 minor points

• Minor pointRemaining secured debt annual interest expense is approximately $140 thousand, the company said.
• Minor point. Forward-looking: it has not happened yet and may not happen.Columbus expansion plans use approximately 3.5 MW of owned capacity without acquiring another mining site.
• Minor point. Forward-looking: it has not happened yet and may not happen.Calumet modernization plans replace older miners with more energy-efficient equipment.
• Minor point. Forward-looking: it has not happened yet and may not happen.PowerCompute plans to develop high-performance computing and AI capacity alongside mining production and efficiency.

Negative

• Major pointSettlement consumed approximately 267.3 pledged Bitcoin to satisfy principal, accrued interest and a fee.
• Moderate pointRemaining secured promissory note of approximately $1.25 million matures December 31, 2026.
• Minor pointArch settlement included a $440,122 fee.
• Minor pointArch settlement included $118,582 of accrued interest.
• Minor point. Forward-looking: it has not happened yet and may not happen.Columbus expansion capacity of approximately 3.5 MW is not yet energized.
• Minor point. Forward-looking: it has not happened yet and may not happen.High-performance computing and AI workloads require sustained uptime, additional infrastructure and customers.

News Explained

The company says repayment eliminates interest and collar-related expenses tied to the Arch and prior Galaxy facilities and Liebel loans; its CFO puts annual interest on remaining secured debt at about $140,000.

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$0.98 – $1.13 Day Range

$1.76M Market Cap

On Sep 30, the day this news came out, the latest delayed price for PWCM is 0.70% below the previous close. Our momentum scanner has recorded 2 alerts for this stock so far that day. The latest delayed price is $0.98. Relative volume is exceptionally heavy at 19.0x the average.

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Key Figures

Facility obligations repaid: Approximately $22.45 million Secured debt: Approximately $19.4 million to $1.25 million; approximately 94% reduction Bitcoin collateral returned: Approximately 39.6 BTC (valued at approximately $3.3 million) +3 more

Facility obligations repaid

Approximately $22.45 million

Arch Bitcoin-backed credit facility

Secured debt

Approximately $19.4 million to $1.25 million; approximately 94% reduction

From June 30, 2026

Bitcoin collateral returned

Approximately 39.6 BTC (valued at approximately $3.3 million)

Returned to the Company after facility settlement

Remaining secured note maturity

December 31, 2026

Single remaining secured promissory note

Annual interest expense

Approximately $140 thousand

For remaining secured debt on an annual basis

Forecast active mining hash rate

Approximately 964 PH/s (+201 PH/s; approximately 21%)

After planned Columbus expansion and continued Calumet fleet modernization; compared with August 31, 2026

Previous Crypto Reports

1 past event · Latest: Sep 23

Same Type 1 event

1. Sep 23

   Mining fleet refresh

   24h Move

   -2.6%

   The earlier plan targeted 862 PH/s; this announcement projects 964 PH/s after added deployments.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-recourse, margin call, secured promissory note, high-performance computing

4 terms

non-recourse financial

"The credit facility was non-recourse"

A non-recourse loan is a type of debt where the lender’s recovery is limited to a specific asset pledged as collateral, and the borrower cannot be personally pursued for any remaining balance if the asset’s value falls short. For investors, non-recourse financing shifts downside risk onto the lender and protects a borrower’s other assets, which can affect a company’s risk profile, borrowing costs, and potential returns — much like insurance that covers only the item left as collateral.

margin call financial

"not as a result of a margin call or forced liquidation"

A margin call is a broker's demand that an investor add cash or sell assets when the value of securities bought with borrowed money falls enough that the account no longer has sufficient collateral. Think of it like a lender asking you to put up more collateral or pay down a loan when the value of what you pledged drops. It matters because unmet margin calls can force quick sales, magnifying losses and creating unexpected liquidity risk for investors.

View in glossary

secured promissory note financial

"a single secured promissory note maturing December 31, 2026"

A secured promissory note is a written promise to repay borrowed money that is backed by specific assets pledged as collateral; if the borrower fails to pay, the lender can seize those assets to recover losses. Investors care because the collateral reduces the lender’s risk and can make the loan safer and more likely to be repaid, similar to a pawnshop loan where an item lowers the lender’s exposure if the borrower defaults.

high-performance computing technical

"high-performance computing (“HPC”) and artificial intelligence (“AI”) applications"

A cluster of very powerful computers, special chips and fast networks designed to tackle huge, complex calculations far faster than a normal PC — like replacing a single delivery van with a synchronized fleet to move a city’s worth of packages. For investors, high-performance computing matters because it enables faster product development, more accurate simulations and data analysis, and new revenue streams for hardware, software and services, making firms that supply or use it potentially more competitive and scalable.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Mississippi Expansion and Oklahoma Fleet Upgrade Expected to Increase Active Mining Hash Rate 25% to Approximately 964 PH/s

TAMPA, Fla., Sept. 30, 2026 (GLOBE NEWSWIRE) -- PowerCompute, Inc. (Nasdaq: PWCM) (“PowerCompute” or the “Company”), today announced that its wholly owned subsidiary, US Digital Mining and Hosting Co., LLC, has fully repaid and terminated its Bitcoin-backed credit facility with ChainFi, Inc. d/b/a Arch Lending, satisfying approximately $22.45 million of obligations and releasing all remaining Bitcoin collateral. No Bitcoin remains pledged.

Transaction and Operating Highlights

• Bitcoin-backed credit facility fully repaid and terminated. No Bitcoin remains pledged.
• Total secured debt reduced from approximately $19.4 million at June 30, 2026 to approximately $1.25 million, a reduction of approximately 94%. Remaining secured borrowings consist of a single secured promissory note maturing December 31, 2026, none of which is secured by Bitcoin.
• Approximately 39.6 Bitcoin, valued at approximately $3.3 million, returned to the Company.
• Approximately 3.5 MW of owned, interconnected electrical capacity in Mississippi, not yet energized, targeted for incremental Bitcoin mining.
• Columbus expansion and continued Calumet fleet modernization expected to increase active mining hash rate from approximately 771 PH/s as of June 30, 2026 to a forecasted increase of approximately 964 PH/s, an increase of approximately 25%.
• 26 MW of owned, interconnected electrical capacity at a blended power cost, net of power sales, of approximately 3.3 cents per kilowatt-hour.
• On completion of the planned deployments, the Company’s 26 MW of owned capacity would support approximately 964 PH/s, or approximately 37 PH/s per megawatt.
  
  

Facility Repayment and Debt Reduction

The Arch credit facility was settled on September 24, 2026, its scheduled reset date. Under the credit facility’s settlement provisions, Arch sold approximately 267.3 of the 307 pledged Bitcoin to satisfy $21,892,132 of principal, $118,582 of accrued interest and a $440,122 fee, and returned the remaining approximately 39.6 Bitcoin to PowerCompute.

The credit facility was non-recourse and contained no margin-call or price-triggered liquidation provisions. It was settled on its scheduled reset date, not as a result of a margin call or forced liquidation.

With this repayment, PowerCompute has reduced total secured debt from approximately $19.4 million as of June 30, 2026, as reported in the Company’s June 30, 2026 Form 10-Q, to approximately $1.25 million — a reduction of approximately 94% in approximately three months. The Company’s remaining secured borrowings consist of a single secured promissory note maturing December 31, 2026. None of the Company’s remaining borrowings is secured by Bitcoin.

The Arch credit financing ultimately refinanced debt used to build PowerCompute’s mining operations. Approximately $12 million of the original debt funded the acquisition of the Company’s Oklahoma and Mississippi mining sites, with additional proceeds used to purchase miners and mining equipment, repair and refurbish mining equipment, and for other corporate purposes.

Repayment of the Arch credit facility eliminates the interest expense and collar-related expense associated with the Arch credit facility, the prior Galaxy credit facility and the Liebel loans. PowerCompute intends to use Bitcoin as working capital to fund equipment purchases, operating requirements and growth initiatives rather than accumulate Bitcoin through a leveraged treasury strategy.

“Repaying the secured debt lowers our annual interest expense to approximately $140 thousand for our remaining secured debt on a annual basis and eliminates the annual interest expense and the collar-related expense that came with the prior Galaxy and Arch credit facilities,” said Richard Russell, Chief Financial Officer of PowerCompute. “We have reduced total debt by approximately 94% in approximately three months, from $19.4 million to approximately $1.25 million, and none of our Bitcoin remains pledged as collateral. That is a materially simpler capital structure and allows us to direct more capital toward productive mining assets instead of debt service.”

As of September 25, 2026, PowerCompute held approximately 62 Bitcoin, valued at approximately $5.2 million based on a Bitcoin price of approximately $84,500 as of that date.

Capital Deployment and Mining Expansion

At Columbus, Mississippi, PowerCompute plans to deploy new mining equipment across approximately 3.5 MW of electrical capacity that is owned and interconnected but not yet energized. Because the Company already owns the underlying electrical infrastructure, the planned deployment would add incremental hash rate without acquiring an additional mining site.

At Calumet, Oklahoma, the Company intends to continue replacing older miners with newer, more energy-efficient equipment, building upon the fleet modernization program announced earlier this month.

PowerCompute currently operates at approximately 763 PH/s of active mining hash rate as of August 31, 2026. Upon completion of the planned Columbus expansion and continued Calumet fleet modernization, the Company expects active mining hash rate to increase to approximately 964 PH/s.

This would represent an increase of approximately 201 PH/s, or approximately 21%, from the Company’s August 31, 2026 active hash rate, and would equate to approximately 37 PH/s for every megawatt of the Company’s owned capacity, while also reducing average fleet energy consumption per terahash.

“What we own and HODL is power,” said Bruce M. Rodgers, Chairman, Chief Executive Officer and President of PowerCompute. “We own 26 megawatts of interconnected electrical capacity at a blended net cost of approximately 3.3 cents per kilowatt-hour. We have taken out our Bitcoin-backed debt and we are putting capital back into productive assets — more mining capacity in Mississippi and more efficient machines in Oklahoma. Bitcoin mining and HPC are two ways to monetize the same megawatt, and we intend to direct our power toward the use that generates the highest return.”

Power, Bitcoin Mining and HPC

PowerCompute owns 26 MW of interconnected electrical capacity: 15 MW at Calumet, Oklahoma and 11 MW at Columbus, Mississippi. At this time, approximately 22.5 MW primarily supports Bitcoin mining, with a portion allocated to an enterprise HPC pilot program. Both locations are mining data centers developed around electrical capacity the Company owns outright.

The Company views Bitcoin mining and high-performance computing (“HPC”) and artificial intelligence (“AI”) applications as alternative ways to monetize its electrical infrastructure. Bitcoin mining can monetize available power immediately and can be curtailed rapidly when power sales are more economically attractive. HPC and AI workloads can potentially generate higher revenue per megawatt but require sustained uptime, additional infrastructure and customers.

Following repayment of the Arch credit facility, PowerCompute will no longer pursue a leveraged Bitcoin treasury strategy. The Company intends to focus capital on acquiring and monetizing low-cost electrical infrastructure, increasing Bitcoin mining production and efficiency, and developing HPC and AI computing capacity.

About PowerCompute

PowerCompute, Inc. (Nasdaq: PWCM), formerly LM Funding America, Inc., is an owner and operator of electrical infrastructure that converts electricity into Bitcoin and high-performance computing and artificial intelligence capacity. Founded in 2008 and headquartered in Tampa, Florida, the Company operates 26 megawatts of wholly owned, interconnected electrical infrastructure across data center facilities in Oklahoma and Mississippi.

The Company also operates a technology-enabled specialty finance business providing funding to nonprofit community associations primarily in Florida. For more information, please visit https://www.power-compute.com.

Forward-Looking Statements

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties.

Some of these risks and uncertainties are identified in the Company’s most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, the Company’s ability to maintain compliance with the continued listing requirements of The Nasdaq Stock Market, including the minimum bid price requirement; the Company’s ability to apply the returned collateral as intended; the availability, cost and timely delivery and installation of mining equipment and related infrastructure, including the effect of tariffs on imported equipment; the Company’s ability to increase active mining hash rate or realize anticipated improvements in fleet efficiency; the Company’s ability to energize remaining power capacity on anticipated timelines or at anticipated cost; the Company’s ability to repay or refinance its remaining indebtedness at or before maturity; changes in Bitcoin prices, Bitcoin network difficulty and total network hash rate; the availability and pricing of energy sales and curtailment revenue; the Company’s ability to convert owned power capacity to HPC and AI use on anticipated timelines or at anticipated cost; the Company’s ability to acquire additional electrical capacity on acceptable terms; the Company’s ability to secure customers for HPC and AI capacity; the anticipated reduction in interest and collar-related expense following repayment of the Arch facility; the availability and cost of GPU and related infrastructure equipment; competition in the HPC and AI compute market; and other risks associated with the Company’s Bitcoin mining, HPC, AI and specialty finance businesses.

The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition and results of operations. Forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update such statements except as required by applicable law.

Investor and Media Contact
KCSA Strategic Communications
Philip Carlson
pwcm@kcsa.com
212-896-1233

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did PowerCompute settle its Arch Lending Bitcoin-backed facility?

Arch sold approximately 267.3 of the 307 pledged Bitcoin to pay $21,892,132 of principal, $118,582 of accrued interest and a $440,122 fee. Settlement occurred on September 24, 2026, the scheduled reset date, rather than through a margin call or forced liquidation. The remaining approximately 39.6 Bitcoin was returned.

What mining capacity does PowerCompute expect after its Mississippi and Oklahoma upgrades?

PowerCompute expects active mining computing power of approximately 964 PH/s after completing the Columbus expansion and Calumet fleet modernization. That is approximately 25% above approximately 771 PH/s at June 30, 2026. The planned deployments would support approximately 37 PH/s per megawatt across its 26 MW of owned capacity.

How much Bitcoin did PowerCompute hold after repaying Arch Lending?

PowerCompute held approximately 62 Bitcoin as of September 25, 2026. Those holdings were valued at approximately $5.2 million using a Bitcoin price of approximately $84,500 on that date.

What power infrastructure does PowerCompute own?

PowerCompute owns 26 MW of interconnected electrical capacity, comprising 15 MW in Calumet, Oklahoma and 11 MW in Columbus, Mississippi. Its blended power cost, net of power sales, is approximately 3.3 cents per kilowatt-hour. Approximately 22.5 MW primarily supports Bitcoin mining, with a portion allocated to an enterprise high-performance computing pilot.