Digital asset prime brokerage FalconX has launched an auto-liquidation service designed to enhance capital efficiency for crypto mining firms, following a turbulent two years that have strained the sector.
The service, part of the firm’s broader platform rollout targeting the industry, is designed to help miners operating in capital-constrained environments manage liquidity more efficiently.
Its offering automates the conversion of crypto mining rewards, including Bitcoin, Litecoin, and other proof-of-work tokens, into U.S. dollars, the company shared exclusively with Decrypt.
FalconX said the service would streamline miners' operations by enabling faster reinvestment into their businesses, removing the need for manual trading or reliance on third-party providers.
The company added that its service offers enhanced liquidity while minimizing costs, with low execution fees and minimal slippage.
Bitcoin Mining Profitability Is Near an All-Time Low—Why?
Although the Bitcoin network’s fourth ‘halving’ event occurred more than two months ago, its repercussions have continued to impact Bitcoin miners, making the industry’s profit margins tighter than ever. According to Hashrate Index, Bitcoin’s “hash price” tapped an all-time low on May 1, falling to just $44.76 per petahash/second (PH/s), per day. The metric quantifies how much money a miner can expect to earn daily at a specific hash rate. Bitcoin “hash rate” is the rate at which Bitcoin miners...
As part of the process, miners who sign up for the service will receive a dedicated deposit address, through which their crypto rewards are automatically converted to cash.
The company emphasized that this process would improve operational efficiency—critical for an industry known for its tight profit margins.
It follows a tumultuous 24 months for the crypto industry and miners, who have faced significant challenges due to volatile market conditions, rising energy costs, and a rising Bitcoin hash rate.
Many miners have also struggled with profitability as Bitcoin's price fluctuations and tightening access to capital have put pressure on their operations.
FalconX claims the new platform consistently outperforms leading global exchanges in Bitcoin trades, with over 90% of transactions executed at a lower cost.
"FalconX aggregates over 94% of global spot liquidity, and hence, we outperform the pricing and depth of major global exchanges," a spokesperson told Decrypt.
Bitcoin Miners Are Still Buying New Hardware Despite Headwinds—Here’s Why
In the midst of shrinking revenues and rising operational costs, industry experts tell Decrypt that Bitcoin miners are continuing to invest in new, specialized hardware, displaying strong confidence in the future of the leading crypto network despite short-term struggles. According to a Glassnode report released this week, Bitcoin’s hash rate—an essential measure of mining activity—remains near all-time highs, just 1% shy, even though revenues have plummeted. The mining industry is currently fac...
The launch is part of FalconX’s broader strategy to bolster crypto’s capital markets by providing liquidity and financial services tailored to mining firms.
The company said it remains committed to supporting miners as they navigate an increasingly complex and capital-intensive environment.
FalconX, which is backed by investors including Accel, American Express Ventures, and Tiger Global, has a presence in major financial hubs such as New York, London, Hong Kong, and Singapore.
Daily Debrief Newsletter
