Definition
A hashrate forward contract is an over-the-counter (OTC) agreement in which a miner commits to deliver a fixed quantity of hashrate at an agreed price for a set period, while the counterparty commits to pay for it. In its deliverable form the seller is obligated to direct real mining production to the buyer over the contract term, and the buyer receives the bitcoin those machines produce. The instrument lets a miner convert uncertain future revenue into a known cash flow, and lets a buyer gain mining exposure without operating hardware. This entry is educational and is not financial advice.
How the terms are structured
A contract is typically defined by three parameters: the locked-in hashprice, the daily quantity of hashrate being sold, and the duration. Because hashprice already blends the bitcoin price, the block subsidy, transaction fees, and network difficulty into a single revenue-per-hashrate figure, a forward written against it simultaneously hedges several variables that would otherwise move independently. Luxor Technology runs the best-known deliverable hashrate forward market, which it reports reached hundreds of millions of dollars in notional volume during 2025.
Why miners and counterparties use it
For an operator, locking a forward price can make payroll, debt service, and expansion easier to plan because revenue is no longer fully exposed to difficulty spikes or a falling market. For the buyer, a forward is a way to take a position on future mining economics. As with any derivative, both sides carry counterparty and opportunity risk: a miner who sells forward forgoes upside if hashprice rises, and a buyer absorbs the loss if it falls.
Related concepts include the cash-settled hashprice NDF and exchange-listed hashrate futures. For the underlying revenue metric these contracts reference, see hashprice.
In Simple Terms
A hashrate forward contract is an over-the-counter (OTC) agreement in which a miner commits to deliver a fixed quantity of hashrate at an agreed price…