POW.RE and Luxor Complete First On-Chain Bitcoin Difficulty Hedge on Doefin

Innovative Tools Helping Miners Manage Bitcoin Network Difficulty Risks

London, UK — March 5, 2025 — POW.RE, a sustainable Bitcoin mining infrastructure operator, and Luxor Technology Corporation, a premier mining services provider, have executed the world’s first on-chain Bitcoin network difficulty hedge using Doefin, a decentralized financial market for Bitcoin mining risk management. This deal introduces a completely new class of derivatives for miners to safeguard profitability against the unpredictable swings of Bitcoin network difficulty, without relying on centralised intermediaries or trusted oracles.

Bitcoin mining profitability hinges on network difficulty, which can fluctuate dramatically— historically by as much as 28% in a single adjustment—directly impacting miners’ revenue. Until now, no decentralized solution existed to mitigate this volatility. Doefin changes that by offering fully collateralized, on-chain derivatives, allowing miners to manage difficulty risk without relying on centralized intermediaries or trusted oracles.

In this inaugural trade, POW.RE secured a hedge against a 5.5% difficulty spike for 100 PH/s of its Paraguayan mining operations. The contract, structured as an option with digital payout, ensures that if difficulty surpasses the agreed threshold, POW.RE’s receives a payout to compensate for reduced mining rewards. “This trade allowed us to lock in some protection against a difficulty jump, and it worked out smoothly”, said Mike Cohen, CEO of POW.RE. “It’s a practical tool that could really help us and other miners plan better and manage risk more effectively. We are excited at the prospect of using difficulty options to enable more complex hashrate transactions..

Luxor, known for its Hashrate Forward Marketplace, acted as the counterparty.

“Doefin’s first transaction with POW.RE and Luxor demonstrates that miners can now hedge difficulty risk in a trustless, decentralized environment,” said Matteo Spinosa, Founder & CEO of Doefin. “We created an entirely new financial instrument, providing miners with a tool they did not have before to stabilize their revenues and thrive in a volatile industry.”

Built on EVM, Doefin eliminates counterparty risk by holding all collateral in the smart contracts escrow. The platform utlises a trustless oracle that verify block headers against Nakamoto consensus rules, ensuring transparent and secure settlement. Accessible to miners, institutional investors, and market makers, Doefin offers an interface where participants can connect wallets and trade with ease.

“We have been helping miners manage risk for a while through our hashrate marketplace, so jumping into this difficulty hedge felt like a natural fit.” said Daniel Rosen, derivatives trader at Luxor “It is simple, it is on-chain, and it is something we think miners and traders alike will want to use more of.”.

As Doefin scales, the platform plans to introduce advanced option strategies, yield-generating products for Bitcoin holders, and deeper liquidity partnerships to enhance market efficiency.

This milestone positions Doefin as a game-changer in Bitcoin mining finance, fostering stability for miners and opening new opportunities for investors in a maturing decentralized economy.

For Media & Partnership Inquiries:

matteo@doefin.com

www.doefin.com

About Doefin:

Doefin is the first on-chain market for Bitcoin mining difficulty derivatives, providing miners and investors with transparent, decentralized tools to manage risk.

About POW.RE:

POW.RE is a leading Bitcoin mining infrastructure provider, operating efficient facilities powered by renewable energy sources to drive sustainable mining practices. POW.RE is at the forefront of the financialization of hashrate, working on structured products for this new commodity.

About Luxor Technology Corporation:

Luxor Technology Corporation is a Bitcoin mining software and services company that offers a suite of products catered toward the mining and compute power industry. Miners interested in optimizing their mining operations can learn more about LuxOS at https://luxor.tech/firmware. Luxor’s suite of software and services includes an Antminer ASIC Firmware, an ASIC Marketplace, a Bitcoin mining Pool, an Hashrate Derivatives Desk, and Hashrate Index a bitcoin mining data platform.