Business Daily Media

Men's Weekly

.

Babel Finance: Finance gets $2 Billion valuation to Pave Way for Risk Hedging by Crypto Miners

HONG KONG SAR - Media OutReach - 17 June 2022 - Babel Finance, announced late last month that it had secured $80 million in a fresh investment round, valuing the crypto lender and asset manager at $2 billion.

Jeneration Capital, Circle Ventures, and 10T Holdings joined current investors Dragonfly Capital and BAI Capital in the Series B investment round. A number of family offices from the Asia-Pacific area also participated in the round, according to Babel.

The valuation shows confidence in Babel Finance from many of the world's leading investment institutions and investors. With this market support, Del Wang, the Co-Founder and CEO of Babel Finance, is confident in that crypto can be a solid hedging tool to manage market volatility. Crypto miners and mining investors stand to gain.

Low-cost energy prices were formerly the primary focus for the crypto mining sector, but as Bitcoin and other tokens grew more market-oriented and mining becomes increasingly institutionalized, crypto miners require sophisticated financial services to boost asset liquidity and hedge risk.

In the crypto mining industry, there are several essential variables for successful operations, which are:

  • The cost of electricity.
  • The computational power of the entire network.
  • The cost of mining machines.
  • The currency price.

Crypto mining machines and electricity expenses are generally fixed costs. Currently, the market's financial products are largely geared to cope with currency price swings to decrease risk and boost profits.

High Yield or High Stability

Before selecting a financial product, it is vital to confirm the crypto miners' requirements for the nature of the financial product.

Crypto mining is a capital-intensive industry. Crypto miners must invest a significant amount of capital in purchasing computing power and paying for electricity. The primary objective of miners employing financial instruments is to hedge the risk of currency price volatility. Thus they want to pay for mining capacity and costs with steady earnings and cash flow.

"Crypto mining has evolved into a mature commercial activity. Pursuing high stability as a commercial activity is not just about maximizing profits," says Del Wang.

Financial Product Options

Currently, the most common financial instruments on the market take advantage of both up and down movements in the market. Crypto miners are more likely to hoard currency if the present price is low and the future outlook is optimistic. Computers and power bills, on the other hand, must be paid on regular terms. Loans backed by crypto are frequently used by miners in this situation, which is good leverage.

Another strategy is to use futures. If the present cryptocurrency price is high, miners who are pessimistic about future currency prices and will be able to sell future un-produced bitcoins at the current higher price. Miners must select the proper leverage direction according to their liquidity and risk tolerance.

Risk hedging

Hedging is a futures contract in the futures market that buys (or sells) the same commodity in the opposite direction as the spot market, trades in both markets in the opposite way, and loses money in one market while making money in the other. A profitable market exists. To meet the goal of minimizing risks, the amount of loss is about equal to the amount of profit.

The goal of hedging for miners is to eliminate or hedge risk. If miners feel that the current currency price has reached a high level and that the market may tip, they can opt to hedge to lock in gains in advance.

Risk hedging is not without costs. If the forecast for the future market direction is incorrect, and the currency price rises in the future, the benefits from the currency price increase will be lost. However, the pursuit of high risk-reward ratios is not the primary goal of institutional miners. It is critical to lock in benefits early to guarantee that miners can ride out the risk.

Final Thoughts

The cryptocurrency market will continue to be volatile, especially given the Fed's hiking of interest rates and the uncertain geopolitical situation arising amid the Ukraine crisis, believes Del Wang. No doubt mining competition will be fiercer too. The integration of financial services and crypto mining is an unavoidable tendency in the evolution of the crypto mining sector. Miners must become more self-aware, improve financial management and control skills, and avoid the raw risks associated with carrying large amounts of fixed assets. Miners can't just go for the highest possible return for financial products. It would be best to consider their liquidity and risk tolerance before deciding on an acceptable leverage direction.

#BabelFinance

News from Asia

World Breastfeeding Week | Gaza: Over 40% of Pregnant and Breastfeeding Women in Save The Children Clinics Malnourished

GAZA - Media OutReach Newswire - 7 August 2025 - More than four in 10 (43%) pregnant and breastfeeding women seeking treatment at Save the Children's clinics in Gaza in July were malnourished, sai...

foodpanda honours delivery partners this National Day with S$16,000 in bursaries, double-tipping and rider safety courses

SINGAPORE - Media OutReach Newswire - 7 August 2025 - To mark Singapore’s 60th National Day, foodpanda, the nation’s leading food and grocery delivery platform, has launched a series of initiative...

Tria enhances SMARC portfolio with new module based on Renesas RZ/G3E processor for HMI applications

Collaboration with Renesas enables Tria™ to offer first SMARC solution based on Renesas RZ/G3E to design engineers and system/application architects around the world.STUTENSEE, GERMANY - Media Out...

"All in Taipei, Made for You" – Taipei Showcases Tourism Appeal in Singapore and Malaysia, Enhancing City Branding and Southeast Asia Outreach

TAIPEI, TAIWAN - Media OutReach Newswire - 6 August 2025 - To strengthen Taipei's visibility and competitiveness in the Singapore and Malaysia travel markets, the Department of Information and Tou...

HDFX Powers the Launch of Singapore’s First EV Truck Battery Swop Station

~ Singapore Events Company Delivers Full-Scale Launch Experience for EcoSwift’s Green Mobility Milestone ~ SINGAPORE - Media OutReach Newswire - 7 August 2025 – Events and experiential marketi...

Henkel celebrates 50 years of innovation, sustainability and trusted partnerships in Australia

Commemorating five decades of purposeful growthMELBOURNE, AUSTRALIA - Media OutReach Newswire – 7 August 2025 – Henkel, a global leader in the adhesive technology and consumer goods markets, marks...

Doctor-patient trust is key to unlocking AI's potential to improve healthcare in Australia, finds Philips' Future Health Index Report

Two-thirds (66%) of Australians welcome technology for improved care, but more than half (53%) are concerned it will mean less face time with their doctor.

Worldgate’s VSING Partners with GENDA to Tap into Japanese Market, to Create Interactive Live-streaming Karaoke Experience

Expands global presence, targeting 100 locations by end of yearTOKYO, JAPAN - Media OutReach Newswire - 7 August 2025 - In an era of rapid technological advancement, industries worldwide are activ...

Pfizer Romania recognized as a Best Place to Work for 2025

BUCHAREST, ROMANIA - Media OutReach Newswire - 6 August 2025 - Pfizer Romania has been officially certified as one of the Best Places to Work in Romania for 2025, a recognition that highlights it...

Amari Vientiane, Laos, Honoured with Four Prestigious Awards at the Haute Grandeur Global Awards 2025

A milestone moment reinforcing ONYX Hospitality Group’s leadership in regional hospitality excellenceVIENTIANE, LAOS - Media OutReach Newswire - 6 August 2025 - ONYX Hospitality Group, a leading ...

Carma appoints Owen Wilson as Chair of the Board

Carma’s next phase of growth to be guided by REA Group’s outgoing CEO who oversaw realestate.com.au rise to be Australia's #1 place for property ...

Digital Upgrade to Boost Efficiency Across Tasmanian Ports

TasPorts is undertaking a multimillion-dollar digital transformation that will improve efficiency, and enable smarter, more sustainable operations a...

Simplifying ecommerce integrations: How to streamline your setup without the stress

In today’s fast-moving retail world, having an ecommerce presence isn’t optional. Platforms like Shopify, WooCommerce, and Squarespace have lowered...

Shop Small Returns to Back the Small Businesses Supporting Local Communities

The annual Shop Small movement by American Express is returning for its 13th year in Australia to galvanise support for the country’s vibrant smal...

Introducing Commerce, the New Parent Brand of BigCommerce, Feedonomics and Makeswift, Powering an AI-Driven Future

Commerce’s open, intelligent ecosystem connects the tools and systems that drive growth and empower businesses to unlock data potential and deliver ...

How better billing can boost performance and profits in uncertain times

Optimising your revenue management function will help you put your business on stronger footing. The fact that economic conditions are tricky i...

Sell by LayBy