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How Does a Miner Hedge against the Risk of Fluctuating Cryptocurrency Prices and High Energy Costs?

Miners hedge price risk with futures contracts and energy cost risk with fixed-price power purchase agreements.
Greeks.Live18.11.25

How Does a Miner Hedge against the Risk of Fluctuating Cryptocurrency Prices and High Energy Costs?

Miners can hedge price risk by selling futures contracts on the cryptocurrency they mine, locking in a future selling price. They can hedge energy cost risk by entering into fixed-price power purchase agreements (PPAs) with energy suppliers.

This converts variable revenue and variable cost into fixed, predictable figures, allowing for better profit margin management.

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