Luxor Technology and Bitnomial Launch Bitcoin Mining Hashrate Futures

SEATTLE and CHICAGO, March 19, 2024 /PRNewswire/ -- Luxor Technology Corporation ("Luxor") and Bitnomial, Inc. ("Bitnomial") have partnered to launch the first-ever US exchange-traded Hashrate Futures for institutional investors, which are tradable on Binomial's US-based derivatives exchange. With the 2024 Bitcoin Halving in mind, the Hashrate Futures will be live on Bitnomial's exchange at the end of March 2024.

Luxor and Bitnomial designed this product to give miners another tool to hedge their future revenue, while also giving investors access to an exchange-traded derivative tracking Bitcoin mining hashrate. The contract size for Hashrate Futures will be 1 petahash (PH), and contracts will have monthly durations. They will reference Luxor's Bitcoin Hashprice Index for settlement to track the value of the underlying commodity (hashrate). 

"Hashrate has one of the highest volatilities of major commodities, and the April 2024 Bitcoin Halving will exacerbate this volatility. Bitcoin miners need additional methods to mitigate this price risk to ensure the longevity of their businesses. Exchange-traded hashrate futures will allow them to quickly move in and out of hedging positions to de-risk their revenue streams, and the revenue certainty should improve their credit profile with lenders, which will lower their cost of securing capital," Luxor's Head of Derivatives, Matt Williams, said.

The contract will be available to anyone with a Futures Commission Merchant (FCM) account that connects to the Bitnomial exchange. Luxor will also be launching an Introducing Broker (IB) business that can facilitate the onboarding of firms to these FCMs. This Hashrate Futures offering is the latest in Luxor's growing suite of hashrate financial products, and it will serve as the US exchange-listed counterpart to Luxor's physically delivered and non-deliverable Hashrate Forwards. 

"As we approach the Bitcoin halving and witness the unprecedented demand for spot Bitcoin ETFs surpassing the available mined supply, Bitnomial stands as a pivotal bridge in the crypto ecosystem." said Luke Hoersten, Founder and CEO of Bitnomial. "Our listed hashrate and physically delivered bitcoin futures and options empower miners to navigate this evolving landscape seamlessly. Through Bitnomial, miners can efficiently trade hashrate-bitcoin futures spreads, gaining invaluable bitcoin-denominated hashrate exposure while effectively hedging and delivering mined bitcoin directly to consumers via a federally regulated exchange. This convergence of innovation and regulation solidifies Bitnomial's commitment to fostering a robust and accessible marketplace for all participants in the crypto space."

These newly listed Hashrate futures are a key addition to Bitnomial's Bitcoin Product Complex alongside the physical bitcoin futures and options it currently offers. Unlike other digital asset derivatives offerings that are cash-settled, Bitnomial is unique in that it offers physically backed contracts, meaning they can be redeemed for bitcoin instead of fiat. According to exchange data, Bitnomial Bitcoin Futures volumes and open interest reached all-time highs during Q4 of 2023, further signaling growing interest in physically-backed Bitcoin financial products.

To learn more about Hashrate Futures, please visit: https://bitnomial.com/exchange/products/hashrate-us-dollar-petahash-futures

About Luxor Technology Corporation

Luxor Technology Corporation is a Bitcoin mining software and services company that offers a suite of products catered toward the crypto mining and compute power industries. Luxor operates a Bitcoin Mining Pool, Hashrate Derivatives Desk, ASIC Trading Desk, ASIC Firmware, Bitcoin mining data platform (Hashrate Index), and Ordinal Hub. 

If you are interested in contacting the Luxor Derivatives Desk, please email [email protected].

About Bitnomial Inc

Bitnomial, Inc. develops and operates exchange, clearing, and settlement infrastructure, connecting native digital asset hedgers with institutional traders. Bitnomial subsidiaries are registered with the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM), Derivatives Clearing Organization (DCO), and Futures Commission Merchant (FCM).

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SOURCE Bitnomial Inc.