Liquidity service provider and digital asset market maker, GSR, announced a partnership with Interhash, the mining services company and strategic partner of mining rig manufacturer, Canaan, in an updated press release, December. 20. The partnership aims to provide risk management solutions for Bitcoin miners on Canaan's network, assuasive them to protect against losses and earn yield on inventory.

Risk management solutions for a volatile industry

GSR volition offering a customized suite of products consisting of swaps, collars, and more bespoke structured instruments from January 2022. These will provide a hedge against volatile factors such every bit Bitcoin price, mining difficulty, electricity and equipment costs. GSR Co-Founder, Cristian Gil explained:

"The cryptocurrency industry is more volatile than whatever other business area, and many participants in the ecosystem are under-hedged or outright united nations-hedged against adverse price activeness. Miners are a foundational component of the digital asset space, and have to consider many volatile factors when planning their future acquirement streams."

Hedging to get more important as the industry matures

In traditional markets, the majority of corporate players have hedging programs. With $3 billion set to be mined in 2022 at current prices, the hedging market place is small compared to physical commodities markets.

Nonetheless, every bit portfolio sizes increase and capital expenditure grows, information technology makes sense to consider hedging options as resources become bachelor. Global Marketing Director of Interhash, Cora Jiang, added:

"Nosotros believe risk management will play an integral function in this industry equally it matures. We are proud to partner with GSR who have substantial financial expertise in this area and a proven runway tape in crypto finance."

As Cointelegraph reported, mining rig manufacturer, Canaan'south shares accept dropped 40% since its November IPO.