POWERCOMPUTE, INC. (LMFA): Entry into a Material Definitive Agreement
POWERCOMPUTE, INC. (LMFA) filed an SEC Form 8-K — Entry into a Material Definitive Agreement. EX-10.2 3 lmfa-ex10_2.htm EX-10.2 EX-10.2 PROMISSORY NOTE $ Set forth on the Borrowing Annex Dated: As set forth on the Borrowing Annex (the “ Effective Date ”) FOR VALUE RECEIVED, the undersigned, US Digital Mining and Hosting Co_, a _Florida_ (“ Borrower ”), hereby promises to
How this was made
The 30-second read
Why it matters
Traders should focus on leverage and refinancing risk implied by the note’s maturity structure (one calendar day after maturity), the ability to prepay without penalty, and the 15% default rate during an Event of Default.
Market read
This is a primary-source debt-structure disclosure. Without the Borrowing Annex principal amounts, the credit impact is hard to quantify, but the default-rate and USDC settlement mechanics can still affect risk pricing.
What to watch
Key missing details include principal amounts per borrowing, effective date specifics, collateral or covenants (if any), and whether this replaces existing debt with similar or better terms.
Background
The 8-K reports Item 1.01 (entry into a material definitive agreement) and Item 2.03 (creation of a direct financial obligation), attaching a promissory note with USDC settlement and interest tied to the Applicable Federal Rate.
Ticker impact
PowerCompute disclosed in an 8-K that it entered a material definitive agreement, including a promissory note creating a direct financial obligation.
Near-term volatility possible as traders price leverage and counterparty/default risk, but direction is uncertain without principal size and terms from the Borrowing Annex.
The excerpt confirms the existence and structure of the note (maturity, prepayment, interest mechanics, default rate) but does not include the principal amounts or the full agreement details needed to gauge credit impact.
Market effects
Adds incremental credit and stablecoin-liquidity risk considerations for digital mining/hosting financing structures, but no clear sector-wide signal is provided.
No specific regional market linkage beyond the issuer’s US filing.
Stablecoin-denominated funding mechanics may matter for cross-border crypto-finance counterparties, but the excerpt lacks scale and counterparties beyond the named noteholder.
Counterpoint
If the Borrowing Annex principal is small or the facility is short-dated with easy prepayment, the market impact may be limited and largely administrative.
Key entities
- issuerPowerCompute, Inc.
Subject of the 8-K, disclosed entry into a material definitive agreement and a promissory note creating a direct financial obligation.
- borrowerUS Digital Mining and Hosting Co.
Named as the borrower under the promissory note, promising repayment in USDC.
- noteholderChainFi Inc. (d/b/a Arch Lending)
Named noteholder receiving principal and interest under the note.
- funding destinationSE & SJ Liebel Limited Partnership
Proceeds are funded directly to this entity to satisfy an outstanding loan.
