Loka, a decentralized Bitcoin mining pool, has partnered with Hashlabs to provide Bitcoin miners with immediate liquidity through a new protocol.

The collaboration with Hashlabs, a sustainable energy mining provider operating in Ethiopia, Finland, and Kazakhstan, enables Loka to launch a permissionless protocol that allows miners to sell future mining rewards.

Eyeing the $10 Billion BTC Mining Market

Bitcoin mining is currently a $10 billion industry. Loka aims to gain traction using a DeFi model that relies on renewable energy sources to mitigate financial risks related to price volatility. This approach will also increase market liquidity, as miners hold an estimated 10% of the Bitcoin supply, equivalent to about $50 billion.

The protocol will offer contracts overcollateralized at 110%, tokenized for instant access to liquidity across secondary markets. This means miners experiencing reduced revenues post-halving can manage liquidity and hedge against market volatility.

The new renewable energy mining pool specifically targets institutional investors, offering BTC hashrate contracts at discounted rates directly from renewable energy miners.

“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,”

Andy Fajar Handika, the founder of Loka Mining, said.

Hashlabs co-founder Alen Makhmetov views the new protocol as a crucial step toward supporting sustainable BTC mining. It’s also key to safeguarding miners’ financial health, which Hashlabs will support through sustainable and low-cost energy solutions. The company controls about 500 petahashes, or 0.08% of the total hashrate on the Bitcoin network.

New Protocol to Leverage ckBTC

Loka’s protocol will offer a non-custodial and trust-minimized environment, providing miners with payouts and investors with liquidity through ckBTC.

Chain-key Bitcoin (ckBTC) is a token backed 1:1 by BTC held 100% on the Bitcoin mainnet. Unlike traditional wrapped tokens, ckBTC does not rely on centralized bridges for conversion to BTC. Instead, ckBTC leverages the Internet Computer’s Chain Fusion to facilitate direct interaction with the Bitcoin network.

With Chain Fusion, Loka can use smart contracts to verify mining contributions and manage rewards.

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