It’s possible the company sold bitcoins in the cash or futures markets, as options traders often do. Given market prices, the time to expiration and the market’s expected volatility, the company would only have to sell just 7.4 bitcoins for every 62 options it gives away to be effectively hedged. If it expects to sell 500,000 units while the incentives are in place, for instance, Bitmain will need to sell 3,700 BTC – $26 million worth – to offset its options.
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