Crypto software and services company Luxor is launching a new product for investors and companies to lock in profits using bitcoin mining derivatives.
The product, called Luxor Hashprice NDF, will be traded over-the-counter and will be first of its kind, according to a statement. The financial instrument will be based on hashprice, a term coined by Luxor that refers to the bitcoin mining revenue miners earn from a unit of hashrate, or compute power over a specific period of time.
With the bear market wreaking havoc on the bitcoin mining industry, participants exposed to the sector require new ways of hedging their downside. Traditionally, derivative products have been used in the traditional finance (TradFi) world to protect against market downturns.
“Hashprice-based derivatives such as the Luxor Hashprice NDF forward contract will usher in a new era of financial instruments for bitcoin miners and give them a much-needed tool to hedge their mining operations,” the statement said. It...
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