How Can a Crypto Miner Use Futures Contracts to Hedge Their Revenue? ▴ Learn

How Can a Crypto Miner Use Futures Contracts to Hedge Their Revenue?

A crypto miner can use a short futures contract to lock in the current price for the cryptocurrency they expect to mine in the future. By selling a futures contract today, they secure a predetermined selling price for their future output.

This strategy hedges against the risk of the cryptocurrency's price falling before they can sell their mined coins. It stabilizes their expected fiat revenue, allowing for better budget planning and operational certainty.

What Is a ‘Short Hedge’ in the Context of a Mining Pool?

How Can a Miner Use Financial Derivatives like Futures to Hedge against Price Volatility?

How Do Futures Contracts or Hedging Strategies Apply to a Mining Pool Operator’s Risk Management?

In Derivatives, How Can the Price of a Utility Token Be Hedged Using Futures Contracts?