Investors can acquire Bitcoin at a discount to the market price through forward hash rate contracts signed directly with miners;
Miners have immediate access to liquidity and can hedge against market volatility.
Loka Mining has launched a protocol with a decentralized Bitcoin (BTC) mining pool that allows miners to sell their future rewards to institutional investors at a discount and give them immediate cash to use for operations.
The product, in partnership with sustainable miner Hashlabs, could appeal to companies whose revenues have been hit by the recent halving and offer a way to hedge against market volatility.
Loka said in a press release on Tuesday that it will launch a permissionless protocol that lets investors acquire bitcoin at below-market prices through forward hash rate contracts directly from miners, which Loka said will be overcollateralized and tokenized for immediate liquidity on secondary markets.
“We’ve seen a lot of interest from large investors looking for better ways to access Bitcoin, and thanks to the hash rate and miner access provided by Hashlabs, we can offer these services without any counterparty risk,” said Andy Fajar Handika, founder of Loka, in the release.
“The protocol provides non-custodial, trust-minimized access to Bitcoin, rewarding miners for providing essential services to the network,” Handika said.
Loka’s investors and backers include BTC Startup Lab, DFINITY Foundation, Outlier Ventures, and Kilonova Ventures.
About Loka Mining
Loka Mining is a meta-layer with a Bitcoin-native yield protocol built on ICP that provides a trust-minimized approach for Bitcoin miners, unlocking key benefits for Bitcoin holders, miners, and investors.
For Bitcoin holders, Loka Mining allows them to leverage their BTC to gain native benefits from the Bitcoin mining economy, and secondly, for Bitcoin miners, Loka provides the opportunity to sell their future mining rewards.
For investors, it offers the opportunity to buy Bitcoin at below market prices. By participating in the Loka Mining ecosystem, investors can buy Bitcoin at a discount thanks to the ability to receive future mining rewards at a lower price.
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