20 October 2025 | Monday | News
Picture Courtesy | Public Domain
Arch Lending, an overcollateralized Bitcoin-backed lending platform, announced a partnership with Luxor Technology Corporation, a leading Bitcoin mining software and services company. The collaboration introduces a seamless capital pathway for Bitcoin miners, from early-stage financing through operational risk management, uniting liquidity and derivative markets under one strategy.
Bitcoin mining is capital-intensive. Operators often face limited access to non-dilutive financing options, forcing them to sell BTC or issue equity. The partnership between Arch and Luxor provides a more efficient alternative designed around the realities of mining.
Through the partnership, miners can secure loans collateralized by Bitcoin, featuring terms up to two years, flexible LTV ratios, and no early repayment fees. These miners have the ability to easily extend and upsize the loan as Bitcoin appreciates. They then use the capital to finance ASIC purchases or infrastructure without liquidating BTC. These miners can then transition into Luxor's hashrate derivatives suite once hashrate is live, including deliverable and non-deliverable forwards, all powered by Luxor's Bitcoin Hashprice Index. These tools enable miners to hedge cashflows, lock in revenues, and manage exposure to hashprice volatility.
"Mining economics demand capital solutions that respect Bitcoin's long-term nature," said Dhruv Patel, CEO of Arch. "Together with Luxor, we're helping miners finance operations without sacrificing BTC upside, from startup to scale," said Himanshu Sahay, Co-Founder of Arch. "Luxor's derivatives desk was built to bridge capital markets and hashrate," said Matthew Williams, Head of Financial Services at Luxor Technology Corporation. "Partnering with Arch allows miners to move between financing and risk management, creating a unified toolkit for sustainable growth."
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