Luxor reports 6–13% annualized Bitcoin yield via mining forwards, contingent on delivery
- —The 6–13% annualized yield comes from the discount miners accept for upfront payment
- —The trade pairs a deliverable hashrate forward with a cash-settled NDF hedge
- —Delivery failure can leave the hedge owing settlement without matching mining revenue
- —Luxor is counterparty to both sides and requires 17.5–18% BTC initial margin
Why it matters: The structure offers institutions BTC-denominated yield but adds miner credit and counterparty risk to the repayment chain.
Source: CryptoSlate