Digital asset prime broker FalconX has unveiled an “electronic streaming service” that will automatically convert the assets crypto miners earn from their operations into USD, “streamlining the reinvestment process,” the firm said in a statement on Tuesday.
“Historically, miners have had to navigate multiple processes and third-party providers to convert rewards into cash, often encountering delays and inefficiencies,” FalconX wrote.
According to a blog post, miners will be able to subscribe to the service, which sets them up with a dedicated address that will convert crypto deposits into cash “without requiring any manual trading or additional operational workflow.” The service apparently functions with any proof-of-work-based tokens, including bitcoin and litecoin.
“This auto-liquidation feature addresses a critical market need, helping miners — who operate in capital-constrained environments — gain access to enhanced liquidity and operational efficiency,” the company continued.
The move comes amid a period of relative instability for capital-constrained miners following the fourth Bitcoin halving event that slashed mining revenues. Miners have seen three consecutive months of declining daily revenue coinciding with an increase in network difficulty.
While many companies sell off the tokens they generate to pay for operational expenses like electricity and ASIC purchases, it is common for miners to hold onto their coins. Marathon, Hut 8 and Riot, for instance, are all among the largest bitcoin holders, according to BitcoinTreasuries.
FalconX said it is soon going to announce additional services tailored to miners, including liquidity, hedging, cash flow management and financing solutions. The firm, founded in 2018, is reportedly searching for mergers and acquisitions after seeing record-high revenues last quarter.
