Luxor’s reported 6–13% annualized Bitcoin yield depends on mining delivery

Luxor, a Bitcoin mining derivatives provider, reported a 6–13% annualized Bitcoin financing spread in its September lookback, published Oct. 9 . It says lenders and Bitcoin treasury companies bought prepaid mining power and paired it with a price hedge, while miners used the reverse trade to obtain financing. The return comes from the discount a miner accepts for receiving money upfront. The hedge can fix gross BTC receipts if mining delivery and settlement perform, while the investor’s capital remains exposed to failure in that repayment chain.

Source: CryptoSlate