How Can a Pool Operator Use an Interest Rate Swap to Manage Floating-Rate Debt Used to Finance Mining Hardware?

A pool operator with floating-rate debt (where interest payments fluctuate with market rates) can enter into an interest rate swap to exchange their variable payments for fixed payments. In a typical swap, the operator pays a fixed rate to a counterparty and receives a variable rate payment from them.

This stabilizes the operator's interest expense, allowing for more predictable cash flow and profit forecasting.