Set-and-Forget Financing: How a Public Miner Used Luxor’s Derivatives to Fund a New Site Without Dilution
Background
A large public Bitcoin mining company was preparing to build out a major site in Texas. As with any industrial-scale deployment, securing capital efficiently — without sacrificing upside or taking on excessive risk — was critical to the project’s success.
Challenge
The company needed short-term financing to bridge infrastructure buildout costs, but was reluctant to issue equity at suppressed valuations or take on expensive debt. With hashprice volatility following the halving, they needed a structure that delivered upfront capital while ensuring predictable repayment terms.
Solution
The miner partnered with Luxor to access capital, secured through a combination of hashrate forwards:
- Using Deliverable Forwards, the company sold future hashrate upfront — receiving over 250 BTC in capital, with Luxor Pool handling delivery and settlement.
- To eliminate hashprice-linked repayment volatility, they bought Non-Deliverable Forwards, converting variable repayment into a fixed BTC payback schedule.
- The entire structure ran through Luxor Pool, automating payouts and removing operational friction.
Results
The financing package delivered several advantages:
- Lower Cost of Capital: Structured yield was more favorable than equity or debt alternatives
- No Equity Dilution: Preserved shareholder value while funding expansion
- Operational Simplicity: Luxor Pool handled all reward flow and repayment automatically
- Immediate Deployment: Upfront BTC enabled rapid site buildout
Conclusion
For public miners seeking capital-efficient growth, hashrate-backed financing offers a powerful new tool. By pairing deliverable and non-deliverable forwards through Luxor, this miner secured funding without compromise — turning future production into predictable, fixed-rate capital today.