Blake King (Galaxy Digital) on Mining, Transmission, and Curtailment (EP.362)
On The Brink with Castle Island
Bitcoin Mining - The Model of Economic Curtailment
When Bitcoin miners turn off and choose not to buy the power at whatever above, do they have a hedge or not? In the case that they do have a hedge, what mechanically happens there? Well, it depends. Is it a physical hedge or a finance? So generally, what happens? Let's say you buy power forward at $60 a megawatt hour, okay? You're a 100 megawatt Bitcoin mine, right? It doesn't matter what the real-time price is. Real-time price could be 40 or a thousand. But when you turn off, you now get title to your megawatts at the real time price.
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