Loka, a decentralized Bitcoin mining pool, has made a significant announcement in the cryptocurrency world by partnering with Hashlabs to introduce a new protocol that offers Bitcoin miners access to immediate liquidity. This partnership with Hashlabs, a sustainable energy mining provider operating in Ethiopia, Finland, and Kazakhstan, is aimed at revolutionizing the way miners can sell their future mining rewards.
The $10 billion Bitcoin mining industry is currently facing challenges related to price volatility, and Loka is looking to address these issues by implementing a DeFi model that relies on renewable energy sources. By leveraging renewable energy-powered mining operations, Loka aims to mitigate financial risks and bring more liquidity to the market. With miners holding an estimated 10% of the Bitcoin supply, equivalent to about $50 billion, the protocol will offer contracts overcollateralized at 110% to provide instant access to liquidity across secondary markets.
The new renewable energy mining pool specifically targets institutional investors, offering BTC hashrate contracts at discounted rates directly from renewable energy miners. Andy Fajar Handika, the founder of Loka Mining, expressed excitement about the partnership with Hashlabs, stating, “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.”
Hashlabs co-founder Alen Makhmetov emphasized the importance of supporting sustainable BTC mining and safeguarding miners’ financial health through sustainable and low-cost energy solutions. With control over about 500 petahashes, or 0.08% of the total hashrate on the Bitcoin network, Hashlabs is well-positioned to drive the adoption of renewable energy in the mining industry.
Loka’s protocol will offer a non-custodial and trust-minimized environment, with miners receiving payouts and investors gaining liquidity through ckBTC. Chain-key Bitcoin (ckBTC) is a token backed 1:1 by BTC held 100% on the Bitcoin mainnet, providing a decentralized alternative to traditional wrapped tokens. By leveraging the Internet Computer’s Chain Fusion technology, Loka can facilitate direct interaction with the Bitcoin network, enabling smart contracts to verify mining contributions and manage rewards efficiently.
Overall, the partnership between Loka and Hashlabs marks a significant milestone in the evolution of sustainable Bitcoin mining, offering a new avenue for miners to access liquidity and for institutional investors to participate in the growing cryptocurrency market. With a focus on renewable energy and financial innovation, this collaboration sets a new standard for the industry and paves the way for a more sustainable and efficient mining ecosystem.