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How Can a Pool Operator Hedge against Cryptocurrency Price Volatility Using Derivatives?

The operator can sell futures contracts or buy put options on the mined cryptocurrency. Selling futures locks in a selling price for the future-mined coins, guaranteeing the fiat value of their fee revenue.

Buying put options provides the right to sell at a floor price, protecting against a price drop while retaining upside potential.

How Can a Protective Put Option Be Used to Hedge against This Maximum Loss?
How Does a Mining pool’S Fee Structure Affect a Miner’s Net Profitability?
How Does a Put Option Provide a Similar Hedging Function to a Short Futures Contract?
How Do Miners Hedge against the Revenue Drop from a Halving Event Using Financial Derivatives?