@vvhyushyy

Rising energy costs have made hedging strategies critical to cryptocurrency mining’s ROI, though such tactics only offer limited protection and fail to restore the sector’s former profitability. Forward contracts and futures have become common tools for miners to lock in stable energy costs. For example, mining companies in the Permian Basin convert flared natural gas into electricity, monetizing stranded assets while reducing emissions and lowering energy costs. Some also use Bitcoin mining as a hedge for renewable energy projects, using surplus power during low-demand periods to generate income. Yet these measures can only mitigate risks rather than boost returns. With Bitcoin’s daily profitability per 1TH/s dropping to a mere $0.0334—a multi-year low—and regulatory compliance costs rising (due to rules like the FATF Travel Rule), the ROI from mining remains meager.

0 reply

0 recast

0 reaction