Cryptocurrency Miners

Hedging provides an insurance policy against volatility

At the heart of the ecosystem, miners must protect themselves against the market’s volatility and fluctuating operational costs. We cover their potential risks through tailor-made solutions to help protect the value of their inventory or future expected production.

Crypto miners receive most of their revenues by mining and selling cryptocurrencies, yet have to meet their electricity costs and operating expenses in fiat currency.

Unlike traditional asset classes like commodities, financial instruments that allow direct hedging are sparsely used, with less than 5% of Bitcoin miners hedging their production today.

Cryptocurrencies are more volatile than commodities. For example, the average annualized volatility for bitcoin is far higher when compared to oil, one of the most established hedging industries in the world.

How we serve miners:

  • Trade execution and programmatic selling
  • Hedging solutions to help protect the value of inventory or future expected production
  • OTC Services
  • Treasury management solutions

 

 Contact GSR Markets today

  • Yield enhancement strategies
  • Hashrate derivatives
  • Bespoke derivatives

General Disclaimer

This information has been provided for informational purposes and is intended for investment professionals only and is not suitable for retail persons in the United Kingdom.  Moreover, relevant legal restrictions or considerations may apply in your particular circumstances (including those based upon the risks of investing in cryptocurrencies), therefore, you are advised to consult with your legal, accounting, and other professional advisors prior to engaging in any transactions or services described herein.