Luxor, a Bitcoin mining derivatives provider, reported a 6–13% annualized BTC financing spread for September from paired prepaid mining forwards and cash-settled non-deliverable forwards. The return comes from the discount miners accept for receiving upfront financing. Mining delivery failure and counterparty risk threaten repayment, while Luxor’s public pages leave net returns and recovery terms unclear. Access is restricted to Eligible Contract Participants, including entities with over $10 million in assets or $1 million in net worth hedging commercial risk. Luxor acts as counterparty to both buyers and sellers, making its own performance part of the repayment chain alongside the mining operation.
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