Hashrate market (hashrate derivatives)

Two kinds of products exist. Spot marketplaces let buyers rent hashrate for hours or days and point it at any pool, while miners sell spare capacity; prices follow hashprice closely. Derivatives, such as hashprice forwards and futures, let a miner sell its expected revenue for a future period at a fixed price, receiving cash regardless of what happens to bitcoin's price, fees or difficulty.

Miners use them to lock in income before a halving, to secure financing from lenders who want predictable cash flows or to monetise new machines before they are installed. Funds and traders take the other side to gain exposure to mining economics without owning hardware. The market grew after the 2022 downturn, when many miners with variable revenue and fixed debts went bankrupt.

Hashrate derivatives are still a young, relatively illiquid market dominated by a few specialised firms, mostly traded over the counter. Hedging protects against falling revenue but gives up gains if hashprice rises, and counterparty risk remains. Renting hashrate on spot markets has also been used to attack small proof-of-work chains with 51% attacks.