Glossary · Hardware

Hosted mining

By the CloudMineCrypto teamUpdated Also called hosting, colocation

Definition

Hosted mining means you own a Bitcoin mining machine but keep it in someone else’s facility, which supplies the power, cooling, space and upkeep for a fee. You keep the machine and its mining rewards; the host charges you for running it.

Part of the Bitcoin mining glossary, 88 terms in plain English.

Three ways to run a miner

Home mining

Who owns the machine
You
Where it runs
Your home or shed
Power bill
Yours, at home rates
Noise and heat
Yours
Repairs
You

Hosted mining

Who owns the machine
You
Where it runs
The host’s facility
Power bill
Yours, at the host’s rate
Noise and heat
The host’s problem
Repairs
The host, often for a fee

Cloud mining

Who owns the machine
The provider, not you
Where it runs
The provider’s choice
Power bill
Built into the price
Noise and heat
None
Repairs
The provider
Typical arrangements. Every host and provider writes its own contract, so check who pays for what.

How does hosted mining work?

You buy a machine, or buy one through the host, and it goes to their site instead of your home. The host plugs it in, keeps it cool and connected, and points it at the pool and wallet you choose. You watch it from your pool’s dashboard.

Hosts usually charge an all-in price per kWh the machine uses. Contracts often add a minimum term, a setup fee or a deposit, and fees for repairs.

What does hosting cost for one machine?

An Antminer S21 draws about 3,500 W, which is 84 kWh a day. At an example hosting rate of $0.07 per kWh that’s $5.88 a day, or about $176 for a 30-day month. That runs whether or not the bitcoin the machine mines covers it, so hosted miners compare it with the live hashprice.

Many hosts can switch machines off when the local grid is short of power. That can lower your bill, but the machine mines nothing while it’s off.

Hosted mining vs cloud mining

With hosting you own a specific machine with a serial number. You can sell it or ship it home, and if it breaks, that’s your problem to solve with the host. With cloud mining you rent hashrate for a time and own no hardware at all.

Before signing, check who owns the machine if the host goes under, how uptime is measured, and who pays for shipping and repairs. The CloudMineCrypto app is simpler: a plan gives you hashrate for a set time with nothing to buy or ship. It doesn’t give ownership of any machine or pool.

Sources

  1. Bitcoin miner catalogue and specifications · Bitmain (manufacturer)
  2. Cambridge Bitcoin Electricity Consumption Index · Cambridge Centre for Alternative Finance
  3. Mining hardware comparison · Bitcoin Wiki

Live figures on this page come from the CloudMineCrypto API and public chain data, refreshed regularly, and are labelled where they appear. Educational only, not financial advice.

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