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On the eve of the explosion of on-chain options
Original Title: Crypto Options Are Waking Up
Original Source: Delphi Digital
Original Compilation: AididiaoJP, Foresight News
The scale of the cryptocurrency options market far exceeds most people's understanding. The trading volume of cryptocurrency derivatives on the Chicago Mercantile Exchange (CME) is 46% higher than the historical record set last year. Institutional investors need clear risk management tools to hedge large positions, and options are the only cryptocurrency tool that can provide this function.
Reshaping the Landscape
By mid-2025, the total open interest in btc-42">Bitcoin options reached $65 billion, surpassing futures open interest for the first time. Futures are leveraged tools, while options allow funds to set a loss limit on their $500 million Bitcoin holdings by paying a premium. This turning point indicates that tools with risk definition capabilities are gradually replacing purely leveraged tools.
This growth is mainly concentrated on two platforms. Deribit has been the mainstream platform for cryptocurrency options trading for years, and after being acquired by Coinbase for $2.9 billion in 2025, it received institutional-level endorsement. Meanwhile, IBIT options, launched at the end of 2024, have brought traditional financial capital into this field. The options market is rapidly expanding, but the vast majority of trades still need to be completed through intermediaries.
On-Chain Options Are Still in Their Infancy
The market share of decentralized derivatives has risen from 2% to over 10% in two years. Hyperliquid has proven that decentralized exchanges (DEX) can match centralized exchanges in speed and transparency. However, on-chain options have yet to see similarly representative projects.
@DeriveXYZ remains the leading on-chain options protocol, with a nominal options trading volume exceeding $700 million in the past 30 days. The protocol was launched in August 2021 under the name Lyra as an options automated market maker (AMM) and underwent a complete reconstruction in 2023 after the bear market, now built on its own OP Stack Layer 2 with a gas-free central limit order book.
This reconstruction has fundamentally changed the pricing mechanism. Market makers quote directly on the order book, narrowing spreads, improving pricing accuracy, and supporting larger-scale trades. Traders can enjoy zero gas fees and sub-second execution speeds.
Its portfolio margin system has also attracted institutional attention. The system assesses overall position risk through scenario analysis. For example, if a trader holds both long call options and short put options on the same underlying asset, the system does not require margin for each leg separately.
The collateral required for hedged positions is lower than the simple sum of each position, which is the common logic in traditional financial derivatives trading desks. Derive also offers perpetual contracts and lending services on the same Layer 2, supporting cross-product margining.
@KyanExchange is moving in the same direction in a different way. The platform combines an order book matching engine with on-chain portfolio margining, allowing multi-leg operations to be completed in a single atomic transaction. Traders can deploy iron condor strategies with just a few clicks.
The clearing mechanism adopted by Kyan also differs from most DeFi protocols. When the margin threshold is breached, the platform does not liquidate the entire account but executes partial liquidations, only closing the minimum positions necessary to restore the account to meet margin requirements. Kyan is currently in the Arbitrum testing phase, with mainnet launch imminent.
Who Needs Options?
Asset management companies building structured products urgently need the clearly defined risk-return structures that options provide. For example, JPMorgan's stock premium income ETF is built on a covered call strategy and is one of the largest actively managed funds in the world. The overall management scale of income products based on derivatives has exceeded $100 billion. As more institutional funds enter on-chain, the corresponding hedging demand will also migrate.
Currently, more and more institutional investors hold or plan to allocate digital assets in the short term. The open interest in IBIT options has surpassed that of the gold ETF GLD. In 2025, CME processed a nominal trading volume of $3 trillion in cryptocurrency derivatives.
The Timing Is Maturing
Most early on-chain options protocols failed to survive primarily due to regulatory uncertainty. For example, Opyn was penalized by the CFTC for operating a derivatives trading platform without a license. At that time, the team could not predict whether the product would be deemed illegal in the next quarter during its development.
The current situation is improving. In September 2025, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued a statement allowing regulated trading platforms to conduct spot cryptocurrency asset trading. The CLARITY Act has passed the House of Representatives, proposing to place the digital commodity spot market under CFTC regulation. The Senate version is still under negotiation and currently on hold. CME Group will launch 24/7 cryptocurrency options trading on May 29. Although this does not guarantee that on-chain protocols will necessarily prevail, the overall environment has undergone a substantial change.
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Sun Valley Releases 2025 Financial Report: Bitcoin Mining Revenue Reaches $670 Million, Accelerating Transformation to AI Infrastructure Platform
On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.
• Financial Performance:
Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.
Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.
Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.
• Mining Operations and Costs:
A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.
The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;
The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.
As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.
• Strategic Progress:
The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.
CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."
"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."
The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."
The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.
The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.
This includes:
· Cost of Revenue (excluding depreciation): $1.553 billion
· Cost of Revenue (depreciation): $38.1 million
· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)
· Mining Machine Impairment Loss: $81.4 million
· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million
The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.
The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.
The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.
The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.
The total annual operating costs and expenses amount to $1.1 billion.
Specifically, they include:
· Revenue Cost (excluding depreciation): $543.3 million
· Revenue Cost (depreciation): $116.6 million
· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)
· Miner Impairment Loss: $338.3 million
· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million
The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.
The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.
As of December 31, 2025, the company's key assets and liabilities are as follows:
· Cash and Cash Equivalents: $41.2 million
· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million
· Miner Net Value: $248.7 million
· Long-Term Debt (related party): $557.6 million
In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.
As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.
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