The Ultimate Guide to Hosting & Colocation

As interest in Bitcoin continues to grow, more and more people are exploring the possibility of participating in mining through hosting. This approach enables people from various backgrounds, regardless of technical expertise or financial resources, to contribute to the ever-expanding Bitcoin network. With numerous hosting options available, navigating the landscape to find the ideal service can be daunting.

In this comprehensive guide, we will delve into the key aspects of Bitcoin miner hosting and highlight some of the different hosting options available. By highlighting crucial factors such as operational efficiency, security, and cost-effectiveness, this guide aims to empower individuals with the knowledge necessary to make informed decisions when choosing a hosting provider for their Bitcoin mining endeavors.

*New Foreman Hosting Dashboard*

With growing interest in Bitcoin mining and the variety of hosting options, the core Bitcoin principle of "don't trust, verify" remains paramount. OBM's Hosting Marketplace aligns with this principle by offering a dashboard that is directly connected to real customers, showcasing information in real-time. This feature is a game-changer in the Bitcoin mining hosting landscape, as it allows hosts to make well-informed decisions based on current, actionable data from actual mining operations. This approach of providing direct, real-time insights to hosts marks a significant advancement in how hosting services are managed and evaluated. In the following sections, we'll explore the impact and benefits of this real-time data connection in the Hosting Marketplace, illustrating how it empowers miners and hosts alike in the dynamic world of Bitcoin mining.


  • Real-Time Dashboard
  • Comprehensive Data
  • Host Rating System
  • Host Verification
  • Energy Cost and Uptime Rating Disclosure
  • Host Anonymity
The Ultimate Guide to Hosting & Colocation

What is hosting or co-location?

ASIC hosting offers an accessible and convenient alternative to home mining by outsourcing the technical challenges associated with Bitcoin mining. By using a hosting service, clients can store their mining rigs in a commercial facility, known as a hosting facility or data center, where they benefit from lower electricity costs and access to professional maintenance and support. Hosting providers handle all operational concerns, including security, customer service, and monitoring, as well as providing the necessary space, power, and cooling systems for the mining equipment. This approach enables individuals from various backgrounds to contribute to the global hashrate and participate in the ever-expanding Bitcoin network without requiring extensive technical expertise or resources to manage a home-based operation.

Credit: Blockworks

Finding Hosting Sites

Locating the right hosting location can be a complex and crucial decision for miners. The Foreman Hosting Dashboard serves as an invaluable tool in this process. It simplifies locating and evaluating hosting sites by providing real-time, comprehensive data on hosting facilities. This dashboard offers insights into operational efficiency, energy costs, and overall reliability, enabling miners to make informed decisions based on their needs. The Foreman Hosting Dashboard effectively bridges the gap between miners and reliable, high-performing hosting services by streamlining the search for suitable hosting locations.

Building on the functionality of the Foreman Hosting Dashboard, users can further refine their search for the ideal hosting location through an array of customizable filters. This feature allows miners to specify their preferences based on factors such as the type of machines they own, the required rack space, the size of the hosting facility, its geographical location, and compatibility with different miner types. Such tailored filtering ensures that miners can quickly identify hosting sites that align perfectly with their unique requirements, whether they're looking for small-scale operations or extensive, industrial-grade facilities. This level of customization in the search process saves time and enhances the likelihood of finding a hosting solution that is precisely suited to the specific demands of each miner's operation.


Cost Structure:

When it comes to hosting Bitcoin ASICs, it's essential to understand the various pricing options available to find the plan that best suits your needs and preferences. Each pricing structure comes with its own advantages and potential drawbacks, and your choice will depend on factors such as budget, risk tolerance, and long-term mining goals. While pricing models can vary greatly between different hosting companies, we’ll cover the three most common cost structures below.

All-in Fixed Price

The all-in fixed price model offered by some Bitcoin miner hosting providers combines power costs at par with a small markup per kWh. This pricing structure provides a straightforward and transparent approach to managing your expenses. By consolidating both the electricity consumption and a minor service fee into a single fixed price, you can easily predict your total monthly expenditure, allowing for better budget management and a simplified billing process. This model is particularly beneficial for those seeking a hassle-free and clear understanding of their hosting costs. An example of this pricing model would look like this:

  $.06/kWh - actual power cost
+ $.01/kWh - markup fee from the hosting provider
= $.07/kWh - the total price paid by you

Power Cost in Addition to a Hosting Fee

This pricing plan combines a monthly or annual hosting fee with a separate cost for the electricity consumed by your ASIC machines. The hosting fee typically covers expenses related to infrastructure, maintenance, and security. The power cost, on the other hand, is directly linked to the energy consumption of your mining equipment. This model allows you to clearly understand the fixed expenses related to hosting while providing some flexibility in terms of energy usage. However, it may be challenging to predict your total monthly expenditure due to fluctuations in energy prices. Bills under this pricing model would look like this:

  $.06/kWh - actual power cost
+ $125 monthly hosting fee per miner
= Total price paid by you

Hybrid Pricing Model

The hybrid pricing model adopted by some Bitcoin hosting companies combines monthly electricity charges with a fee in the form of a small percentage of the Bitcoin mined each month. This approach can effectively lower the operating costs for miners, as the hosting provider shares the risk and benefits from the mining operation's success. By taking a small portion of the revenue mined, the hosting company aligns its interests with those of the miner, often resulting in improved performance and cost optimization. While this method may lead to sharing some of your mining revenue, the potential for reduced operating expenses can make it an attractive option for miners seeking to maximize their profit margins. Here’s an example:

  $.06/kWh - actual power cost
+ 60/40 split of net mining profits between you and the host
= Total price paid by you

What Kind Of Miner Access Do You Get?

When selecting a hosting facility, it's essential to consider the level of visibility and access you're granted to your miners. A reputable hosting provider should offer you access to a client dashboard through a miner management software, such as Foreman.mn. This powerful tool enables you to monitor crucial metrics like hashrate, audit pool payouts, and receive alerts for hardware failure or network interruptions. If you're searching for a hosting provider that offers this level of access, the Foreman team can recommend a facility that provides Foreman dashboard access to their hosting clients.


Location Of Hosting Facilities

Selecting the right hosting provider for your Bitcoin mining operation requires careful consideration of the geographical location of the hosting facility and its associated factors, which can significantly impact the success and profitability of your venture. We’ll cover a few things to take note of when you’re researching the location of a prospective hosting provider below:

Regulatory Environment

The regulatory landscape for Bitcoin mining varies significantly across different jurisdictions. Some regions are more favorable to cryptocurrency mining due to relaxed regulations, while others may impose stringent restrictions or even ban the practice altogether. China banning cryptocurrency mining in 2021 serves as a reminder of the worst-case scenario you need to be prepared for when choosing a host for your miners. Ensure that the hosting provider operates in a region with a stable and supportive regulatory environment to minimize potential legal risks.

Power Availability and Cost

Access to cheap and reliable power is crucial for the profitability of your Bitcoin mining operation. Investigate the energy sources available in the hosting provider's location and the associated costs. Regions with abundant “renewable” energy resources like hydroelectric, solar, or wind power typically offer lower electricity rates, which can significantly improve your bottom line.

Source: Luxor

Local Climate

The local climate can influence the efficiency and longevity of your Bitcoin mining ASICs. Cooler climates can help maintain optimal operating temperatures, reducing the need for extensive cooling solutions and minimizing the risk of hardware failure. If the hosting facility is in an area with a lot of dust, rain, or snow, you’ll want to verify they have proper equipment and filtration to mitigate the risk to your miners posed by climate. Many mining containers have these mitigation systems built in, so it might be worthwhile to ask prospective hosting companies what kind of containers they use if they are a container-based deployment.

Energy mix

When selecting a hosting facility, it's essential to carefully consider the energy mix powering the facility. The source of electricity not only impacts the operational cost but can also affect the reliability and sustainability of your mining endeavor. It's crucial to evaluate whether the hosting facility operates off-grid or on-grid, as this can influence the stability and continuity of the power supply. Knowledge of specific markets such as oil and gas might be useful as well. A good example is the nat-gas market exploding in 2022 due to geo-political issues.

Source: Global LNG Hub

Off-grid facilities, typically powered by renewable energy sources or generators, may face more frequent fluctuations in energy availability. On the other hand, on-grid facilities are connected to a larger energy network, which can provide a more reliable power supply. On-grid miners also have the opportunity to participate in demand response programs, allowing them to capitalize on opportunities offered by power companies. Additionally, if sustainability is something you care about, look for hosting providers that utilize energy sources such as nuclear, solar, wind, or hydroelectric power.

Sourcing The Machines

Some facilities require you to purchase your own miners and have them delivered to the hosting site. In this case, be sure to check your hosting agreement for any setup fees associated with getting your miners online. Many hosting providers can either sell you ASICs directly or connect you with a preferred retailer for a smoother acquisition process. If you are buying ASICs from vendors overseas, be aware of any kind of tax or import fees that may apply to your purchase.

Another option is the buy-and-host model, where you purchase ASICs directly from the facility in order to have them hosted on-site. While these machines might be sold at a markup, this model could potentially offer better power rates or contracts with greater flexibility. By evaluating these different procurement options, you can select a hosting facility that best aligns with your budget, needs, and overall mining strategy.

Security and Maintenance

Mining hardware's safety should be a top priority for the hosting provider, with measures like robust physical site security, including fences, locks, and access control systems. Additionally, security staff should be available to monitor the premises, preferably on a 24/7 basis, to ensure the continuous safeguarding of your equipment.

On-site maintenance is equally valuable, as skilled technicians can perform simple repairs such as board or fan replacements, minimizing downtime and maximizing mining efficiency. Furthermore, these technicians can help manage your miners' factory warranties, ensuring that any necessary repairs or replacements comply with the warranty terms. By vetting the security and maintenance offerings of a hosting facility, you can ensure that your mining operation is both protected and well-supported.

Source: EZBlockchain

Expected Uptime

When evaluating a hosting provider, the expected uptime they quote is an important factor to consider. Some companies guarantee a certain percentage of uptime, reflecting their confidence in providing a reliable and continuous mining environment. These providers may even compensate you for the difference if the monthly uptime falls below the promised rate, ensuring that you receive a fair deal in line with their commitment. It is also important to ask if the hosting facility participates in a demand response program. While this may lower overall costs, it will also lower the average uptime for your machines. Ensure that the demand response is also built into your overall lowered cost per kWh.

Hosting companies that do not promise a specific uptime might produce less desirable results, with more frequent downtimes that can negatively impact the efficiency and profitability of your miners. It's essential to choose a hosting provider that not only quotes a high uptime percentage but also has a proven track record of meeting those expectations.


Remember that the right hosting facility will not only provide optimal conditions for your mining equipment but also offer a secure and supportive environment that enables your mining operation to thrive. Armed with the insights from this comprehensive guide, miners and hosters can confidently navigate the Bitcoin miner hosting landscape and make informed decisions that will set your mining venture on the path to success.


Stay tuned for more updates! If you have any questions, contact us on Discord, Twitter, or send us an email!

Master Your Mining with Foreman. Try it for free today!

Stay tuned for more updates! If you have any questions, contact us on Discord, Twitter, or send us an email!

Master Your Mining with Foreman. Try it for free today!

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