For Miners

The New Era of BTC Mining

Optimizing datacenter cost structures offers only marginal reductions in mining operation expenses. However, with the advent of new transaction types like Ordinals, Runes, and upcoming Layer 2 solutions, BTC miners are increasingly focused on developing strategies to capture higher transaction fees. Post-halving, the fees-to-reward ratio has fluctuated between 3% and 300%. As competition in the mining industry intensifies, a miner's success will increasingly hinge on their ability to effectively secure these transaction fees.

How Does It Benefit Miners?

Historically, BTC feerate buyers consistently pay a premium over spot feerate to hedge against the volatility. The higher the volatility, the greater the premium. Since miners are natural producers of transaction fees, by selling future BTC fees on Alkimiya, miners can capture the high premium by locking in future fee revenues, especially during high network congestions.

Miners’ short positions are hedged by the natural transaction fee revenue

BTC transaction feerate exhibits strong correlation with the fee component of hashprice over 14D and on a daily basis