US crypto mining firm Luxor Technologya non-deliverable forward contract, whose price reflects the dynamics of BTC mining revenues.
The product, dubbed Luxor Hashprice NDF, is «just the first of many derivatives» the firm plans to launch next year.
The tool will replicate hashprice behavior. Under this term, the firm understands the revenue that falls on a hashrate unit over a certain period of time.
The settlement of the contract is provided in Bitcoins, dollars or dollar-based stablecoins. The terms will be selected on an individual basis according to the counterparty’s needs.
Matt Williams, head of derivatives at Luxor, has said:
«While many derivative instruments exist for miners to hedge their Bitcoin price exposure, as well as their power and energy exposure, the space was lacking an instrument to easily hedge their hashrate exposure.»