How Does the Concept of ‘Mark-to-Market’ Affect a Miner’s Cash Flow When Using Futures for Hedging?
Mark-to-Market (MTM) is the daily process of adjusting the value of a futures contract to reflect its current market price. This means a miner's margin account is credited or debited daily based on the futures price movement.
If the price moves against their short hedge position, they face a negative cash flow from margin debits, which can strain liquidity even if the spot crypto they hold has gained value.
