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What is the procedure for Bitcoin mining hosting?

Many methods exist for mining Bitcoin. How to mine Bitcoin is also well-documented.

An easy-to-follow explanation of what hosting solutions look like at first sight, how retail customers might benefit, and the probable negatives of hosting have been put up by Compass.

What is hosting, and how does it differ from just renting space?

Colocation and data centers are additional terms for the commercial facilities where ASICs are housed by hosting services.

There are two main advantages to Bitcoin mining hosting service: lower costs and more flexibility. Host solutions take care of the drawbacks of Bitcoin mining such as excessive noise, heat, and energy consumption.

Take a look at the Antminer S19, which is the most popular mining equipment on the market today in terms of heat and noise. The S19 has a maximum output of 3,000 watts and a maximum temperature of 175 degrees Fahrenheit. If you want to utilize a Bitcoin ASIC in your home, you’ll need a dedicated facility, not your kitchen.

Hosting options are generally more cost-effective than home mines when it comes to electricity. Hosted systems provide lower costs per megawatt than alternatives because of handshake agreements with energy suppliers or operating “behind the meter.” As of November 2021, according to the Department of Energy, household electric prices were 50 percent more costly than industrial rates.


Hosting services might alleviate some of the burdens of maintaining a website, but they also have their drawbacks. Two major critiques have been voiced so far: the logistical challenges faced by big industrial companies, and the perceived centralization of the Bitcoin network.

Bitcoin mining operations, like those of any big industrial facility, need a wide range of inputs in order to run well. Capital and personnel are needed to provide enough electricity, weather control, internet access, and round-the-clock maintenance. When one part of a facility has downtime, such as a blown transformer, the disruption spreads to all equipment.

Second, Bitcoin mining is still plagued by the issue of network centralization. Hosting miners with a third party implies that your hash rate is not physically owned by you, similar to a custodial wallet. Instead, it’s in the hands of someone else.

Hosting services are very probably required for Bitcoin mining in its present industrialized condition. Miners, on the other hand, are urged to extensively investigate hosting options before handing up their ASICs.

Costs that everyone pays

A 12- or 24-month hosting contract is not out of the question. Customers of Compass, for example, are bound by 12-month hosting contracts. The cost of hosting is determined by the facility’s cost per kilowatt-hour but is often between $0.05 and $0.07.

Electricity expenses and hosting fees are the two main components of hosting costs. A machine’s projected draw over a month is used to calculate electrical prices, however, customer experiences may vary by provider. At $0.062/kWh for example, the monthly cost of an S19 consuming 3.25 kW would be $149. Building security, maintenance, and upkeep are all included in the hosting price. Typically, hosting expenses are included in the cost of electricity.