On the Bitnomial United States derivatives exchange, Luxor Technology Corporation and Bitnomial Inc. have introduced a Bitcoin mining derivative product.

On May 28, Bitnomial announced the release of a derivative futures contract for trading Bitcoin blockchain processing power: Hashrate Futures.

Introduction of Hashrate Futures

Bitnomial said the product under the ticker HUP provides a means for investors to have exposure to the Bitcoin mining hash rate and miners to hedge their income.

A futures contract is a financial derivative whereby two parties agree to purchase and sell a financial asset for an agreed-upon price at a future date.

Priced based on “hashprice,” Luxor’s assessment of Bitcoin mining revenue potential, this commodity exchanges hash rate and the computational power of Bitcoin.

Monthly durations of hashrate futures contracts have a 1 petahash (PH) size; the reference rate for settlement is Luxor’s Bitcoin Hashprice Index.

Luxor also offers over-the-counter goods with non-deliverable hashrates that settle on an exchange under the control of the Commodity Futures Trading Commission.

According to Bitnomial founder and CEO Luke Hoersten, “enabling Hashrate to Bitcoin Futures is fungible” with the firm’s actual Bitcoin Futures.

“These spreads let people take returns in either USD or BTC, or isolate hash rate risk from Bitcoin price risk,” he said.

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Luxor invented the phrase “hashprice,” which describes the anticipated value of one TH of daily hashable capacity. It estimates a miner’s expected pay from a given hash rate level.

HashRateIndex reports that the hash price right now is $0.053 per terahash per second per day.

It peaked during the halving event on April 20 at $0.140, then plummeted following the block reward cut-off.

Since the start of 2024, the hash price has been down 46%, which makes it considerably more difficult for miners to earn from their proof-of-work operations.