Luxor launches mining-revenue-linked investment product

American mining company Luxor Technology has launched a non-deliverable forward contract whose price reflects the dynamics of revenue from mining Bitcoin. According to The Block.

Luxor Hashprice NDF has become ‘the first of many derivatives’ the firm plans to launch next year.

The instrument will mirror the behavior of хешпрайса. Under this term, the company understands the revenue per unit of hashrate over a given period.

Settlements are denominated in Bitcoin, dollars, or based on the latest stablecoins. Tenors will be tailored to the counterparty’s needs.

‘While there are many derivative instruments that allow miners to hedge their exposure to Bitcoin price, as well as their capacity and energy costs, there was a lack of an instrument tied to hash rate,’ — said Matt Williams, head of derivatives at Luxor.

Luxor noted that the instrument could appeal to private trading firms, hedge funds and other investment companies as a way to enter the mining industry.

Earlier in 2022, Luxor Technology launched equipment-trading service for Bitcoin mining. The platform offers new and used ASIC miners, GPUs and spare parts for devices.

Earlier, the digital-asset manager Grayscale Investments launched a product for joint investments in equipment for Bitcoin mining against the backdrop of crypto winter.

Read ForkLog Bitcoin news in our Telegram — cryptocurrency news, prices and analytics.