Associate Director Derivatives
10 July 2023
Luxor’s Derivative Desk now offers 6-month contract duration and daily settlement.
SEATTLE, WA, June 26, 2023 – Luxor Technologies, a Bitcoin mining software and services company, is expanding the offerings of its Bitcoin mining derivatives contracts. Luxor Derivatives Desk’s newest product will provide Bitcoin mining market participants with six-month duration contracts and daily settlement rates. The six-month contracts fulfill a request from participants for longer duration contract periods, and the daily settlement will ensure recurrent and fast access to liquidity.
This update will set a new benchmark for hedging efficiency and cost of capital in the Bitcoin Mining derivatives space, allowing miners to hedge for longer periods with better terms and immediate access to cash.
Luxor’s Head of Derivatives, Matt Williams, said, “This innovative pricing model takes Hashprice contracts to the next level. The integration of daily settlement rates makes our offerings more appealing to traditional finance investors, expanding our Hashprice Marketplace’s reach beyond the mining space. This development underlines Luxor's vision of transforming hashrate into a viable asset class.”
As the Luxor Derivative Desk adds additional participants, the added liquidity should improve the cost of capital for miners. The update is timely considering that miners are roughly ten months away from the 2024 Bitcoin halving. As miners prepare for a 50% reduction in the BTC value of block subsidies, Luxor’s 6-month Hashprice contracts could help miners plan their long term hedging strategies to navigate the volatility.
Nick Hansen, CEO and co-founder of Luxor, added, "This upgrade is a testament to Luxor's commitment to financial innovation in the Bitcoin mining sector. It's an upgrade of our vision of hashrate as an asset class, and we're excited to bring this forward-looking product to our robust number of clients already using Hashprice contracts."
Hashprice contracts are traded on Luxor Derivative’s OTC Marketplace, where sellers can lock in Bitcoin mining revenue and buyers can access non-physical exposure to Bitcoin mining. Luxor’s Derivatives Desk facilitates order matchmaking, manages counterparty risk, and settles payments using the Bitcoin Hashprice Index as the reference rate for expected mining revenue.
From the launch of the Hashrate Index in 2020 to the introduction of the latest version of its Hashprice Marketplace, Luxor Technologies continues to lead the way in financial innovation, with a series of exciting product launches planned for the upcoming year.
Luxor Technology Corporation is a mining software and services company that offers a suite of products catered toward the mining and compute power industry. Luxor operates a global Bitcoin Mining Pool, Hashrate Derivatives, ASIC Trading Desk and Bitcoin mining data platform Hashrate Index. If you are interested in contacting the Luxor Mining team, please email [email protected].
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