Loka Launches Bitcoin Mining Pool for Institutional Investors With Support From Hashlabs

Institutional investors will be able to buy bitcoin futures at below-market rates from miners using sustainable energy.

Bitcoin (BTC) mining company Loka has launched a protocol with a decentralized bitcoin mining pool that allows miners to sell their future rewards to institutional investors at a discount.

The product, launched in collaboration with sustainable bitcoin miner Hashlabs, will allow mining companies to sell a portion of their future bitcoin rewards to institutional investors at a set price below the prevailing market rate. This gives miners instant access to cash for operational use, while the companies can use the bitcoin to hedge against market volatility or hit U.S. tax code Section 1031 like-kind exchange requirements, according to Loka.

The institutional investors, in turn, will be able to buy bitcoin futures at below-market rates from miners using sustainable energy to power their operations, the company said.

Loka will launch a permissionless protocol that gives investors access to bitcoin at below-market prices through forward hashrate contracts directly from the miners, the company said in a Tuesday press release. The contracts will be overcollateralized and tokenized for immediate liquidity in secondary markets, Loka said.

“We’ve seen tremendous interest from larger investors seeking better ways to access bitcoin, and thanks to Hashlabs’ supply of hashrate and access to miners, we’re providing that – with no counterparty risk,” said Andy Fajar Handika, founder of Loka, in the press release.

“This protocol provides non-custodial, trust-minimized access to bitcoin that rewards miners for the work they do providing a necessary service for the network,” Handika said.

Loka's investors and backers include BTC Startup Lab, Dfinity Foundation, Outlier Ventures and Kilonova Ventures.

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Will Canny is CoinDesk's finance reporter. He covers traditional and crypto finance, with a focus on institutional adoption and market structure. Before joining CoinDesk, he worked as a financial journalist at Bloomberg Law.

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