Liquidity provider GSR and mining company Interhash have announced a collaboration to create a solution that will allow mining companies to hedge their risks and protect themselves from losses.
The solution will use a custom set of products that includes swaps and other structured tools. This will allow you to hedge the risks of bitcoin volatility, possible increase in the complexity of mining the first cryptocurrency, as well as the cost of electricity or equipment.
“The cryptocurrency industry is much more volatile than other business sectors, and many participants in the ecosystem are not protected from possible price fluctuations. Miners are the Foundation of the entire cryptocurrency space, and they must take into account many volatility factors to ensure their future operations and profit planning, ” explained GSR co-founder Cristian Gil.
He also noted that in the traditional market, most players use tools to hedge risks. In 2020, it is expected that the value of extracted cryptocurrencies will reach $3 billion, and risk hedging occupies a very small market share.
“We think that risk hedging begins to play a significant role when the industry gets back on its feet. We are very happy to cooperate with GSR – a company that has considerable experience in such matters and has already worked with cryptocurrencies,” said Cora Jiang, marketing Director of Interhash.
Recently, it was reported that Chinese miners give out two-thirds of the total hashrate of the first cryptocurrency network. According to a study by the British company CoinShares, the share of BTC miners from the Chinese province of Sichuan accounts for more than half of the global hashrate.