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How Can a Miner Use a Forward Contract to Lock in the Future Value of Their Block Reward?

By entering a short forward contract, the miner locks in a future sale price for their expected coin revenue, hedging against price drop risk.
Greeks.Live19.11.25

How Can a Miner Use a Forward Contract to Lock in the Future Value of Their Block Reward?

A miner can enter into a short forward contract to sell a specified amount of the cryptocurrency at a predetermined price on a future date. By doing this, they lock in the fiat value of a portion of their expected block reward revenue.

This hedges against the risk of the price dropping between the time the coin is mined and the time they need to sell it to cover operational costs, providing financial certainty.

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