Mine More, Earn Faster: Bull Market Growth Hacks

The bull market is in full swing, and Bitcoin's rise since the U.S. election has miners scrambling to capitalize on the upside. Across the industry, miners are racing to procure ASICs, secure rack space, and bring machines online. But with higher demand, tight ASIC markets and logistical delays are making it harder to grow production and capture upside in the bull market.

While traditional hardware procurement has its merits, there’s a faster, more efficient way to scale hashrate and profitability during the bull market: buying hashrate directly from Luxor’s hashrate forward market. This post explores the basics of purchasing hashrate from Luxor's forward market and highlights some common trading strategies.

Buying Forward Hashrate From Luxor

Luxor’s hashrate forward market simplifies the process of scaling mining operations. For a pre-agreed price (payable in USD, stablecoins, or BTC), miners gain access to a fixed amount of hashrate over a predetermined duration.

The hashrate and resulting mining rewards are delivered seamlessly to your Luxor Pool account, with payouts as frequent as daily. Luxor offers 0% pool fees and a 100% uptime guarantee. Contracts begin delivery promptly at the start of each UTC day.

This direct approach offers several advantages over operating ASICs. Physical mining operations entail challenges: delivery delays, electrical issues, power costs, and infrastructure bottlenecks can stall production while leaving operating capital idle. By contrast, hashrate forwards enable miners to deploy capital and generate BTC instantly — without the typical complexities associated with ownership and operation of hardware.

Further, unlike real-time (spot) hashrate markets, forward contracts lock in fixed mining costs, ensuring profitability in the bull market. On real-time (spot) hashrate markets, the price you pay will rise with hashprice, offsetting any increase in profitability. Cloud mining, while offering fixed costs, is not necessarily a two-sided market with true price discovery. Prices are typically higher for buyers and the only seller allowed is the cloud mining operator.

And finally, with Bitcoin transaction fees still near historical lows, hashrate offers an upside not available through spot BTC purchases. Exposure to transaction fees — especially in a rising fee environment — adds another layer of potential upside in a bull market. Mining companies looking to add Bitcoin to their balance sheet should consider adding hashrate for the additional upside from mining economics.

Hashrate Forward Purchase Strategies

In recent weeks, we’ve seen short and long term hashrate purchase strategies deployed.

Short Term Strategies

Miners make short term hashrate purchases for a number of reasons. Short term could be anywhere from a few days to a couple of months.

On the operational side, we see miners buying hashrate to respond to expected and unexpected downtime events. ASIC delivery delays, electrical issues, high power prices, infrastructure delays and a myriad of other reasons can obstruct mining operations while capital for funding OpEx sits idle. With hashrate forwards, miners can immediately deploy that capital and generate BTC. 

On the hosting side, when operations are down, purchasing hashrate is a hedge for a host’s uptime commitments. The worst case scenario for an uptime guaranteeing host experiencing downtime is rising hashprice and a rising obligation to hosted clients. Purchasing hashrate in the short term is a simple method to mitigate that risk.

The most interesting recent hashrate purchases were the event-driven speculative trades. In particular, astute miners purchased hashrate prior to the U.S. election and earned a substantial profit. Hashrate delivered from November 6 – 25, which traded at $46.19 per PH/s/Day prior to the election, has earned on average $56.32 per PH/s/Day since the election.

Long Term Strategies

With the tenors in Luxor’s hashrate forward market recently extended to 12 months, miners and investors can now make long term hashrate purchases that rival an ASIC investment. As those watching the ASIC market will have noticed, new generation hardware prices imply a lower ROI and longer payback period compared to previous years. Under these conditions, a long term hashrate purchase may be a more capital efficient method for procuring hashrate than purchasing ASICs. On November 15, a miner was able to procure 90 PH for 1-year on Luxor’s Hashrate Forward Market for $44.50 per PH/s/Day. 

Conclusion

The Bitcoin bull market demands speed and flexibility, and Luxor’s hashrate forward market offers miners a faster, smarter way to scale production and profit. By bypassing the delays and challenges of traditional ASIC procurement, miners can deploy capital instantly, lock in fixed costs, and gain exposure to Bitcoin mining upside — all without the operational headaches.

Whether mitigating downtime or securing long-term hashrate, forward contracts empower miners to adapt quickly and maximize returns. In a competitive market, this streamlined approach ensures you stay ahead and capitalize on Bitcoin’s growth.

If you’d like to learn more about Luxor’s Bitcoin mining derivatives, please reach out to [email protected] or visit https://www.luxor.tech/derivatives.

Disclaimer

This content is for informational purposes only, you should not construe any such information or other material as legal, investment, financial, or other advice. Nothing contained in our content constitutes a solicitation, recommendation, endorsement, or offer by Luxor or any of Luxor’s employees to buy or sell any derivatives or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the derivatives laws of such jurisdiction.