De-Risking Deployment: How BitMine Used Luxor’s Hashrate Derivatives to Hedge and Scale Confidently

Background

BitMine Immersion Technologies (OTCQX: BMNR), a Bitcoin miner using advanced immersion cooling, had one goal: to bring new hashrate online efficiently and securely. With previous exposure to energy infrastructure and capital markets, BitMine understood the financial and operational risks involved in mining deployments, particularly in volatile markets.

Challenge

Scaling a Bitcoin mining operation involves significant capital outlays. For BitMine, the biggest risks were volatile mining revenue, capital efficiency, and a need for predictable returns. BitMine needed a way to bring on more hashrate and ASICs while ensuring predictable economics, even in turbulent markets.

Solution

To scale its operations quickly without taking on undue financial risk, BitMine partnered with Luxor for a financing & hedging strategy.  Luxor offered a 12-month Hashrate Forward Contract, enabling BitMine to hedge its mining revenues for a full year by locking in a fixed hashprice. This gave BitMine visibility into its cash flows, creating financial predictability in an otherwise volatile environment. Additionally, Luxor used the contract as the basis for ASIC equipment financing, enabling BitMine to pre-sell future hashrate to finance the purchase and deployment of new machines. This capital-efficient structure helped BitMine expand operations without diluting equity or taking on high-interest debt.

Results

Luxor’s hashrate forward contract helped BitMine unlock several critical advantages:

• Revenue Predictability: The hashprice hedge reduced BitMine’s financial exposure to Bitcoin price and difficulty swings.
• Faster Scaling: Forward sale financing allowed BitMine to triple its deployed ASIC fleet without traditional capital constraints.
• Strategic Focus: With revenue risks mitigated, BitMine could focus on operations and growth rather than survival.

Conclusion

BitMine’s story demonstrates the power of hashrate derivatives as a strategic tool for miners. By integrating hashrate hedging and forward sales into its deployment model, BitMine achieved something rare in Bitcoin mining: predictability. For mining operations facing uncertain markets or seeking more capital-efficient scaling, Luxor’s Derivatives Desk offers custom hedging solutions that turn volatility into opportunity.