Bitcoin

when

April

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Luxor Technology Corporation and Bitnomial Inc. have introduced a Bitcoin mining derivative product on Bitnomial’s US derivatives exchange.</li>
 <li>The product, known as Hashrate Futures, allows miners to hedge their revenue and investors to gain exposure to Bitcoin’s mining hash rate.</li>
</ul>
<p>Bitcoin mining company Luxor Technology Corporation and Bitnomial Inc. have unveiled a Bitcoin mining derivative product on Bitnomial’s US derivatives exchange.</p>
<p>On May 28, Bitnomial declared the introduction of Hashrate Futures. This is a derivative futures contract for trading the computational power of the <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> blockchain.</p>
<h2 id="hashrate-futures-a-new-way-to-trade">Hashrate Futures: A New Way to Trade</h2>
<p>Bitnomial stated that the product, which trades under the ticker HUP, provides miners with a method to secure their income. It also gives investors a chance to gain exposure to Bitcoin’s mining hash rate.</p>
<p>In a futures contract, two parties agree to trade a financial asset at a future date for a predetermined price. This product trades Bitcoin’s computing power and is priced based on “hashprice”. This is a measure by Luxor of Bitcoin’s mining revenue potential.</p>
<p>Hashrate Futures contracts are 1 petahash (PH) in size for monthly durations. They use Luxor’s Bitcoin Hashprice Index as the reference rate for settlement. Luxor also offers non-deliverable Hashrate Forwards, which are over-the-counter products and do not settle on an exchange regulated by the Commodity Futures Trading Commission.</p>
<h2 id="understanding-hashrate-futures">Understanding Hashrate Futures</h2>
<p>Bitnomial’s founder and CEO, Luke Hoersten, clarified that Hashrate Futures are interchangeable with the company’s physical Bitcoin Futures. This allows for Hashrate to Bitcoin Futures spreads.</p>
<p>He explained that these spreads enable participants to take returns in either USD or BTC. It also separates hash rate risk from Bitcoin price risk.</p>
<p>Hashprice is a term created by Luxor. It refers to the anticipated value of 1 TH/s of hashing power per day. This quantifies how much a miner can expect to earn from a specific quantity of hash rate.</p>
<p>The current hashprice is $0.053 per terahash per second per day, as per HashRateIndex. It saw a spike around the halving event on April 20 to $0.140, but it fell afterwards when the block rewards were halved.</p>
<p>Since the start of 2024, Hashprice has declined by 46%. This makes it increasingly challenging for miners to generate a profit from their proof-of-work activities.</p>

Bitnomial Partners with Luxor to Introduce New Bitcoin Mining Derivatives Product

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