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Mitigating Volatility with Electricity Mining
While Infinity Hash Stacks (IHS) provide a good long-term profitability potential, an investment in IHS can be exposed to short-term volatility and reward variability. This is not necessarily a bad thing, as there are periods when IHS can rise far above the price at which they were bought, and generate rewards higher than the target. However, for some investors, that variability is a source of stress or even a deal-breaker.
In this article we will discuss two different strategies IHS investors can employ in order to reduce as much as possible this volatility, while still enjoying a profitable source of passive income. These strategies combine investments in IHS and Electricity Mining to mitigate volatility while maintaining steady rewards.
What Is Electricity Mining?
Electricity Mining is Infinity Hash’s way of turning real-world infrastructure into fixed-yield crypto investing. It works by deploying gas-powered mining generators at greenhouse farming sites. These setups serve two purposes: mining Bitcoin, and heating the greenhouses with the excess heat.
The result is a win-win. Greenhouse operators reduce their heating costs by up to 50%, while Infinity Hash drastically cuts electricity expenses for mining. These operational savings are shared with users through Electricity Mining contracts (EMC).
As a user, you can buy these contracts, usually with 1-to-4-year durations, and receive a fixed APR in return, paid out monthly. Rates have not been established yet, but the following could serve as an example implementation:
- 2-year contracts at 12% APR
- 3-year contracts at 15% APR
- 4-year contracts at 19% APR
These are not variable yields or speculative rewards. They are fixed, contractual returns, backed by the greater energy efficiency obtained through the hardware upgrade. That makes them ideal for users who want low-volatility, predictable returns while still participating in the broader Infinity Hash ecosystem.
Infinity Hash plans to offer all contract types in parallel, with a shared rewards pool automatically purchasing unsold allocations daily to ensure a balanced participation.
Strategy 1: Building an IHS Position with Electricity Mining Rewards
In this strategy, you allocate capital to an Electricity Mining contract and reinvest the returns into IHS over time.
This gives you the upside of IHS accumulation without ever exposing your principal to IHS price risk. You’re not buying IHS with your own money, you’re using returns from a fixed-income product to gradually build a position.
Over time, this can result in a sizable IHS balance accumulated with zero exposure to volatility. And should the IHS price increase, your position benefits just like any other holder.
It’s a conservative, long-term accumulation strategy, optimal for users who want exposure to Infinity Hash’s upside but don’t want to ride the daily swings.
Strategy 2: Rewards Pool Mining (Coming Soon)
A second strategy, currently under discussion, would let users allocate their IHS into a new type of rewards pool that mines Electricity Mining contracts (EMC) on their behalf.
Here’s how it would work:
- You hold IHS as usual.
- You assign a portion of your IHS to a specialized electricity mining rewards pool.
- That portion of your daily rewards is used to buy EMC.
- These contracts then start producing a steady, fixed return, layered on top of your regular IHS exposure.
This approach doesn’t remove IHS price risk, but it dampens the volatility over time. As more of your rewards are redirected into fixed-income contracts, your overall returns become more predictable and stable. The longer you remain in the pool, the smoother your income profile becomes.
Scenario Modeling: Comparing Both Paths
Let’s assume two users start with the same $1,000 investment, and IHS is priced at $2.
User A chooses the first approach. They invest their $1,000 into a 3-year Electricity Mining contract at 15% APR. Rather than pocketing the returns, they use the monthly payouts to buy IHS at $2 each. Thanks to compounding, after 3 years they would accumulate approximately 282 IHS. They never use their own funds to buy IHS, so their capital is never exposed to price swings, yet they still end up with a sizable IHS position.
The trade-off for User A is giving up the potential benefits of IHS price appreciation, higher rewards during bull markets, or improved infrastructure. However, what they gain is peace of mind: a slow, steady accumulation of IHS funded purely by fixed, contractual income.
User B, on the other hand, starts by buying 500 IHS outright with their $1,000 and assigns them to the upcoming rewards pool. Instead of receiving BTC rewards, they would receive Electricity Mining contracts. Compounded daily, these contract purchases total approximately $450 by the end of 3 years, assuming a 15% direct APR for IHS. Meanwhile, they still hold their original 500 IHS, and enjoy any upside (or suffer any downside) that comes with it. Moreover, the accumulating Electricity mining contracts would also generate additional profits every month.
The reward for User B is potential upside if IHS appreciates, and the added benefit that, over time, their daily rewards increasingly shift into predictable, fixed-income streams. Their exposure to IHS volatility gradually becomes softened by the steady returns from electricity mining.
The Convergence
Interestingly, the two strategies begin to converge as time goes on. User A, who began with stable, fixed returns, slowly builds a position in the more volatile IHS. User B, who began with full price exposure, slowly shifts a portion of their rewards into the more stable electricity mining side. In essence, both users are diversifying over time, just in opposite directions.
User A never risks their own capital on IHS, accumulating exposure only through guaranteed returns. User B accepts volatility at the start, but continually reins it in through infrastructure-backed income. Both approaches offer a smart, long-term way to engage with Infinity Hash, tailored to different comfort levels and goals.
Infinity Hash has always been about long-term conviction. But long-term doesn’t have to mean high stress. With Electricity Mining, conservative users now have powerful tools to reduce volatility, de-risk their exposure, and build toward the future.