Bitcoin mining CEO eyes hashrate contracts to offset rising costs
The slashing of the Bitcoin block subsidy from 6.25 Bitcoin to 3.125 during the April 2024 halving has placed financial pressure on miners.
As Bitcoin miners continue to capitulate due to high costs and decreased block rewards, Andy Fajar Handika, CEO and co-founder of Loka Mining — a decentralized mining pool operator — says he’s found a way to sell future hashrate to finance short-term needs and growth.
In an interview with Cointelegraph, the Loka Mining CEO introduced the idea of forward hashrate contracts — allowing miners to sell their future hashrate for fiat-denominated loans from creditors — which could help to keep the capital-intensive business viable.
These proposed hashrate forward contracts allow smaller mining operations to finance growth and pay for operations today while using the Bitcoin hashrate of tomorrow, he explained.
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Author: Vince Quill
