Loka Mining Introduces Forward Contracts to Prevent Miner Capitulation Amid Declining Rewards

As Bitcoin mining becomes increasingly challenging due to declining block rewards, Loka Mining has announced plans to introduce forward mining contracts to help miners mitigate financial pressures. The company’s CEO, Andy Fajar Handika, revealed that these contracts would allow miners to sell their future hashrate for immediate cash flow, providing much-needed liquidity during tough market conditions.

The introduction of forward contracts is aimed at offsetting the impact of Bitcoin’s halving in April 2024, which saw block rewards drop from 6.25 BTC to 3.125 BTC. This reduction has squeezed miners’ margins, forcing many to consider exiting the industry. By offering contracts with terms of 3, 6, and 12 months, Loka Mining hopes to stabilize the market and prevent a wave of miner capitulation.