Bitcoin Mining Gets a Boost: Institutional Investors Can Now Buy Futures at Discounted Rates
Loka Mining has launched a new protocol that allows institutional investors to buy bitcoin futures at below-market rates directly from miners. This protocol is in collaboration with Hashlabs, a sustainable miner, and is likely to appeal to companies whose revenue has been hit by the recent halving.
The protocol gives investors access to bitcoin at below-market prices through forward hashrate contracts directly from the miners. These contracts are overcollateralized and tokenized for immediate liquidity in secondary markets.
This development provides a number of benefits:
- Investors gain access to bitcoin at below market rates.
- Miners have immediate access to liquidity and can hedge against market volatility.
- This protocol provides non-custodial, trust-minimized access to bitcoin that rewards miners for the work they do providing a necessary service for the network.
Loka's investors and backers include BTC Startup Lab, Dfinity Foundation, Outlier Ventures and Kilonova Ventures.
This innovative solution has the potential to significantly impact the bitcoin mining ecosystem, offering a more efficient and accessible way for institutional investors to participate in the market.
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