Luxor Technologies on Wednesday rolled out a mining stock index that the crypto mining firm said will help quantify the industry’s health on the public markets.
The new index product, which appears on Luxor’s “Hashrate Index,” features 50 publicly traded companies with a stake in the mining game. Miners themselves are heavily represented but some tech-adjacent names like SBI Holdings and Galaxy Digital are also in the mix.
COO Ethan Vera told CoinDesk the “Crypto Miner Stock Index” comes as ever more mining stocks debut. Publicly traded mining companies now power over 15% of the bitcoin network’s hashrate, he said.
He said the index “provides miners, investors and the public a gauge on how investors are looking at the space and the sentiment in mining.” The index will be updated quarterly.
The investment world has been chasing mining exposure in recent months amid a wider shakeup in the sector. Just over a week ago, Viridi Funds unveiled an exchange-traded fund for bitcoin mining firms going green. That vehicle is to be 80% in green miners and 20% in semiconductor companies.
Even public pensions are getting in on bitcoin mining stocks as an arm’s-length investment in the crypto economy.
For its part, Luxor’s index will be a mix of pure-play mining firms and the companies supporting them. Ten percent of the initial index is earmarked for chip manufacturers, five percent for foundries and the remaining 85% for the miners themselves.
Diversified crypto companies with a stake in the mining business get 50% less weighted power, according to a press release.
“Bitcoin mining valuations are a high beta play on bitcoin,” Vera said. “If the underlying commodity moves a few percent, the valuations move some multiple of that. These valuations give investors torque on the underlying commodity.”