According to a press release, Luxor Technologies, a Bitcoin mining services provider, has introduced the Luxor Hashprice Non-deliverable Forward (NDF), an over-the-counter (OTC) Bitcoin mining derivative.
Based on the hashrate capacity during a specific period of time, hashprice tracks the revenue earned from mining Bitcoin.
The NDF contract will track the hashrate of Bitcoin mining firms, giving institutions and investors indirect exposure to the Bitcoin mining industry.
CEO and co-founder of Luxor Nick Hansen stated:
These products are a major step in the Luxor roadmap and something we have analyzed deeply since the company’s genesis; hashprice derivatives are the apotheosis of our vision of hashrate as an asset class, something we’ve been pioneering since we introduced hashprice with the launch of the Hashrate Index in 2020.
The NDF will provide participants the option to settle in USD, which will be the default currency, as well as BTC.
Additionally, Luxor will manage counterparty risk, facilitate orders, settle payments, and determine hashrate value using its Hashrate Index. NDF sellers may select various contract terms that include the locked-in hashprice, daily hashrate sold, and the duration of a contract. Contracts will be adaptable and used to satisfy counterparties’ needs.
According to the press release, Luxor’s NDF is the first of many derivatives based on hashrate that the company aims to offer throughout the upcoming year.