So, I was doing some research on how can I protect my earnings and came accross the information that in response to falling crypto prices and increasing energy expenses, publicly listed Bitcoin miners were forced to sell nearly all of the BTC that they've mined in 2022.
Businesses prepare for the eventuality of a market downturn when they venture out, minin businesses included and when preparing for this, you come up with ways to overcome it or to thrive in it.
Falling prices in Bitcoin is expected in crypto, but the current energy crisis may have surprised some, reason for the sell off by some miners.
What I'm wondering here is if there is a way for miners to hedge against shrinking margins? Do you think hedging strategies could help us stay solvent amid the bear market?
As a solo entrepreneur, you hedge up profits when the prices are high and the cost of operations are low, so then the reverse happens, you would be able to survive through the winter period.
Publicly traded companies operate differently and like all businesses during time ob market downturn they would need to cut costs (by laying off workers or some other means) and maybe have diversified investments in other niches that could bring in profits.