Luxor Technologies Introduces Six-Month Bitcoin Mining Derivatives Contracts

Bitcoin mining services provider Luxor Technologies’ Derivatives Desk now includes derivatives contracts that last six months along with daily settlement rates, giving market players longer-term contracts and quicker access to liquidity. 

This move is designed to increase hedging efficiency and decrease capital cost in the Bitcoin mining derivatives sector.

Luxor's Head of Derivatives Matt Williams stated that "this innovative pricing model takes Hashprice contracts to the next level." 

He also mentioned that the addition of daily settlement rates makes Luxor's offerings more appealing to traditional finance investors, thus expanding Luxor's Hashprice Marketplace's reach beyond mining. 

Williams further emphasized that this evolution aligns with Luxor's mission of making hashrate a feasible asset class.

Luxor expects that as more traders join the Luxor Derivatives Desk, liquidity will continue to rise, which could reduce capital costs for miners. Luxor's six-month Hashprice contracts may aid miners in creating long-term hedging strategies to cope with any upcoming volatility in Bitcoin’s price.

CEO and co-founder of Luxor, Nick Hansen, described this development as a step forward in their vision of hashrate as an asset class and conveyed his eagerness about offering this product to their broad client base that already uses Hashprice contracts.

The Hashprice contracts are traded on Luxor's Derivatives OTC Marketplace, allowing sellers to secure Bitcoin mining earnings and buyers to obtain non-physical exposure to Bitcoin mining. 

Luxor's Derivatives Desk oversees order matchmaking, manages counterparty risk, and settles payments using the Bitcoin Hashprice Index as the expected mining revenue reference rate.