Luxor, a crypto software and services firm, is releasing a new product that enables investors and businesses to lock in earnings by employing Bitcoin mining derivatives. For years now, Luxor has been working on a derivatives product tailored specifically for miners. We are thrilled to announce that this is now a reality with the Luxor Hashprice Non-Deliverable Forward.https://t.co/2DSUnr2E9e — Luxor Mining (@LuxorTechTeam) October 10, 2022 According to a release, the Luxor Hashprice non-deliverable forward (NDF) product will be the first of its type and traded over the counter (OTC). The financial instrument would be based on hashprice, a word introduced by Luxor that describes the number of Bitcoin miners in the Bitcoin mining industry made from a unit of hashrate, or computing power, over a given length of time. Derivatives Instrument To Use In TradFi Participants exposed to the sector need new strategies for risk mitigation, given how badly the bear market is affecting the Bitcoin mining business. Derivative instruments have historically been employed in traditional finance (TradFi) to hedge against market declines. According to the announcement, hashprice-based derivatives, like the Luxor Hashprice NDF contract, would inaugurate a new generation of financial instruments for Bitcoin miners and provide them with much-needed tools to protect their mining operations. According to the release, it would assist investment compani...
