Growing Suite of Next-Generation Structured Products for Digital Assets
BitOoda Holdings LLC and its subsidiary Ooda Commodities LLC (“BitOoda”) announced the successful execution of the industry’s first Bitcoin Transaction Fee Swap in partnership with Griid Infrastructure LLC and an undisclosed family office.
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BitOoda structured and executed the Transaction Fee Swap, continuing its mission of spearheading next-generation structured products for data center operators and speculators. This fully-compliant swap allows both buyers and sellers to hedge their exposure to fluctuations in transaction fees, was executed by a CFTC/NFA-regulated brokerage firm and a Series 3 licensed broker, and was reported to ICE Trade Vault.
The timing of the trade is also significant, as the bitcoin halving serves as a reminder that transaction fees will play an increasingly prominent role for miners. As block rewards are reduced, miners will rely more on transaction fees as a key revenue source to fund their operations.
An increase in transaction fees can also have significant impact on high-transaction businesses such as exchanges, Bitcoin ATMs, and remittance firms. As bitcoin transaction fees rise, these firms either pay those higher fees themselves or pass the fees on to their clients.
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BitOoda CEO Tim Kelly stated, “We’re thrilled to have collaborated with the talented team at Griid in executing the first Bitcoin Transaction Fee Swap. We have seen tremendous growth in the size and sophistication of operators here in North America, and by adding the Transaction Fee Swap to our Difficulty Swap and Hash Contract, we are providing a suite of critical tools for these operators to effectively manage their risk, while also providing transaction fee stability for critical infrastructure companies.”
Griid CEO Trey Kelly said “Executing on our ambitious growth plans has been made so much easier by collaborating with the whole BitOoda team on hedging and risk management through their Hash Contract. When the opportunity arose to innovate with the Transaction Fee Swap, we jumped at it. The future adoption of bitcoin will require sophisticated network financialization and we are proud to be pushing mining to the bleeding edge.”
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