How Can a Miner Use a Futures Contract to Hedge against Price Volatility Affecting Their Breakeven Point?

A miner can use a short futures contract to lock in a selling price for the cryptocurrency they will mine in the future. By selling a futures contract at a price above their calculated breakeven point, they effectively hedge against the risk of the spot price falling below their cost of production.

This guarantees a profit margin, stabilizing their cash flow regardless of market price volatility.