What Is the Primary Trade-off When a Miner Decides to Hedge Their Revenue?

The primary trade-off is sacrificing potential upside profit for revenue certainty. By locking in a selling price with a short futures contract, the miner guarantees a minimum revenue stream, which aids in financial planning.

However, if the price of the cryptocurrency rises significantly, the miner misses out on those potential gains because they are obligated to sell at the lower, hedged price. It is a decision between stability and speculative gain.