How Can a Mining Pool Operator Use a Power Purchase Agreement (PPA) to Manage Electricity Cost Risk?

A PPA is a long-term contract to buy electricity at a pre-agreed price. A pool operator can use a PPA to lock in a stable, predictable electricity cost, protecting them from volatile energy price fluctuations.

This is crucial for maintaining stable operational costs and predictable profitability, especially when offering guaranteed payouts like PPS.