Reuters: Mining companies seek financial derivatives to hedge risks from fluctuations in hash rate

The surge in hashrate means more power is needed, which will undoubtedly increase production costs and erode the ultimate profit made when cryptocurrencies are sold. This unknown situation may become a major obstacle for startups to attract imminent investment from institutions and markets. Seven cryptocurrency miners and industry insiders say derivatives that allow miners to hedge their computing power can help solve this problem, and they are paying closer attention to controlling hash rates and price risks through financial instruments.
Although the market for such products is in its very early form, it has gradually emerged and will become increasingly important. Although exact numbers are difficult to obtain, some people in the crypto field predict that the market may be worth about $ 50 million to $ 100 million a year. Kevin Shao, Manager of the Canaan Blockchain Division, also said that the adoption of derivatives in the mining sector has definitely increased in recent months.