Wave power extraction algorithms for wave energy converters are normally designed without taking system losses into account leading to suboptimal power extraction. In the current work, a model predictive power extraction algorithm is designed for a discretized power take of system. It is shown how the quantized nature of a discrete fluid power system may be included in a new model predictive control algorithm leading to a significant increase in the harvested power. A detailed investigation of the influence of the prediction horizon and the time step is reported. Furthermore, it is shown how the inclusion of a loss model may increase the energy output. Based on the presented results it is concluded that power extraction algorithms based on model predictive control principles are both feasible and favorable for use in a discrete fluid power power take-off system for point absorber wave energy converters.