Luxor and Bitnomial introduce new derivative product for Bitcoin mining.

Bitcoin mining company Luxor Technology Corporation and derivatives exchange Bitnomial Inc. have collaborated to launch a new Bitcoin mining derivative product on Bitnomial’s US exchange. The product, called Hashrate Futures, is a futures contract that allows traders to speculate on the computing power of the Bitcoin blockchain. It provides miners with a way to hedge their revenue and allows investors to gain exposure to the Bitcoin mining hash rate. The contracts are priced based on Luxor’s hashprice, which measures the potential revenue from Bitcoin mining. The contracts have a 1 petahash (PH) size and settle based on Luxor’s Bitcoin Hashprice Index. In addition to Hashrate Futures, Luxor also offers non-deliverable Hashrate Forwards as over-the-counter products. Bitnomial’s CEO, Luke Hoersten, explained that Hashrate Futures can be traded alongside the company’s physical Bitcoin Futures, which allows participants to manage hash rate and Bitcoin price risks. The hashprice has experienced fluctuations, reaching a high of $0.140 per terahash per second per day during the halving event in April, but has since declined by 46% since the beginning of 2020, making it more difficult for miners to generate profits from their activities.