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What is a power purchase agreement (PPA)?

A power purchase agreement is a long-term contract to buy electricity from a generator or supplier at agreed prices.

How it works

It sets the price, which may be fixed or tied to an index, the volume, the term and what happens when either side cannot deliver or take the power.

Why it matters

Power is most of a miner's running cost, so the PPA largely decides whether a site survives a low hashprice.

Related terms

All terms: the Bitcoin mining glossary.

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March 22–24, 2027 · Irving Convention Center · Dallas

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