GSR’s partnership with Interhash, the mining services company who is a strategic partner of hardware manufacturer Canaan (NASDAQ: CAN), allows miners to protect against losses and earn yield on inventory
HONG KONG, December 20th, 2019 — GSR, the global leader in digital asset trading and market making, today announced a partnership with Interhash, the mining services company who is a strategic partner of cryptocurrency mining giant Canaan. The companies expect that the collaboration will bring professional risk management and execution services to Canaan’s substantial mining network.
GSR
will offer a customized suite of structured products to mining counterparties
beginning in January, 2020. These risk management solutions will allow miners
to protect themselves against losses and earn extra yield on inventory. This
product suite will consist of customized Swaps, Collars and more bespoke
structured products.
“The
cryptocurrency industry is more volatile than any other business area, and many
participants in the ecosystem are under-hedged or outright un-hedged against
adverse price action,” said Cristian Gil, Co-Founder of GSR. “Miners are a
foundational component of the digital asset space, and have to consider many
volatile factors when planning their future revenue streams.”
“The
cost of mining equipment and electricity are constantly in flux. Miners must
also consider the asset’s mining difficulty and price. The unpredictability of
their business models is unprecedented, so it is natural that this segment of
the market is exploring ways to better hedge their risk. We are pleased to help
build customizable risk management solutions alongside Interhash, who are
global leaders in the industry.”
At
current prices, roughly $3B USD of Bitcoin will be mined in 2020 alone. “The
market for hedging is small when compared to physical commodities markets,
however it is compelling for a variety of reasons. Unlike traditional
commodities, digital commodities are experiencing rapid growth. Plus, given
bitcoin’s ‘constant supply’ dynamics and other unique characteristics, new
products are required to properly deliver quality risk management solutions to
miners.” added Richard Rosenblum, Co-Founder of GSR.
In
traditional markets, the majority of corporate players have hedging programs.
In crypto, as portfolio sizes increase and capital expenditure grows, it is
prudent for management to explore hedging now that the relevant resources are
becoming available.
Cora Jiang the Global Marketing
Director of Interhash added “We
believe risk management will play an integral role in this industry as it
matures. We are proud to partner with GSR who have substantial financial
expertise in this area and a proven track record in crypto finance.”
About GSR
GSR, founded in 2013, is the global
leader in digital asset trading and market making. We specialize in providing liquidity, risk management strategies and
structured products to sophisticated global investors and others in the digital
assets industry. We’re one of the oldest established institutional market
makers for digital assets and a pioneer in developing digital asset
derivatives, algorithmic solutions and proprietary trading strategies. Our
leadership team of veteran finance and technology executives from Goldman
Sachs, Two Sigma, Nomura International, IBM and Oracle, among others, has
created one of the world’s fastest, most robust and transparent digital asset
trading systems.
GSR works with token issuers, traders, investors, miners, and more than 30 cryptocurrency exchanges around the world. As a founding member of The Association for Digital Asset Markets (ADAM) GSR is also a leader in establishing and maintaining industry standards and protocols to support the healthy development and evolution of the global digital assets industry. To learn more about GSR, please visit: www.gsr.io
Media Contacts
Ryan Dicovitsky & Tom Vogel
Dukas Linden Public Relations
New York, NY
GSR@dlpr.com
+1-646-808-3646 / +1-646-808-3663
