How does commodity roll yield affect the profitability of cryptocurrency mining?

1 answers

• JasonLuAug 31, 2024 · a year ago
  Commodity roll yield can have a significant impact on the profitability of cryptocurrency mining. When the roll yield is positive, miners can take advantage of the price difference between the current and next futures contracts to increase their profitability. They can sell their mined cryptocurrencies in the futures market at a higher price and then buy back the contracts at a lower price, making a profit from the price difference. However, if the roll yield is negative, it means that the next futures contract is priced lower than the current one, which can reduce profitability. Miners may need to hold onto their mined cryptocurrencies until the roll yield becomes positive again before selling them for a higher price. Overall, the commodity roll yield is an important factor that miners need to consider when assessing the profitability of their mining operations.
  875

  438