How Does the Cost of Carry Affect a Miner’s Hedging Decision?

The cost of carry is the net cost of holding the underlying asset until the delivery date, often reflected in the difference between the spot and futures price. A miner must factor this cost into their decision, as a positive cost (contango) means the futures price is higher, which is beneficial for a short hedge, but a negative cost (backwardation) is a cost to the short hedger.