Investors interested in gaining access to bitcoin at below market rates now have a new option available to them. Loka Mining, in collaboration with sustainable miner Hashlabs, has launched a protocol that allows miners to sell their future rewards to institutional investors at a discount. This not only gives miners immediate access to liquidity but also allows them to hedge against market volatility. The product is especially appealing to companies whose revenue has been impacted by the recent halving of bitcoin.
Loka Mining’s new protocol offers investors a way to access bitcoin at below-market prices through forward hashrate contracts directly from miners. These contracts are overcollateralized and tokenized, providing immediate liquidity in secondary markets. According to the company, there is no counterparty risk involved in these contracts, making them an attractive option for larger investors seeking better ways to access bitcoin.
Andy Fajar Handika, founder of Loka, expressed enthusiasm for the new protocol, highlighting its benefits for both investors and miners. He emphasized that the protocol provides non-custodial, trust-minimized access to bitcoin, rewarding miners for their essential role in supporting the network. Loka’s investors and backers include reputable names such as BTC Startup Lab, Dfinity Foundation, Outlier Ventures, and Kilonova Ventures – a testament to the credibility and potential of the project.
By offering miners a way to sell their future rewards at a discount, Loka Mining’s protocol not only provides immediate liquidity but also helps miners mitigate the risks associated with market volatility. This can be especially beneficial for companies whose revenue has been affected by external factors such as the recent halving of bitcoin. The collaboration between Loka and Hashlabs aims to address these challenges and provide a solution that benefits both miners and investors.
With the launch of this new protocol, investors have access to a unique opportunity to acquire bitcoin at favorable rates, directly from miners. This innovative approach to buying and selling bitcoin through forward hashrate contracts offers a level of security and transparency that traditional methods may not provide. The overcollateralization and tokenization of these contracts ensure immediate liquidity in secondary markets, making it an attractive option for investors looking to optimize their access to bitcoin.
Overall, Loka Mining’s protocol represents a significant step forward in the world of bitcoin mining and investment. By providing a decentralized bitcoin mining pool that allows for the sale of future rewards to institutional investors, Loka is creating a new avenue for miners to access liquidity and hedge against market volatility. With the support of reputable investors and backing from industry leaders, Loka Mining is poised to make a substantial impact on the market and offer a valuable service to both miners and investors.
