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Top 10 Questions Every Investor Must Ask About a Bitcoin Mining Hosting Service

Choosing the right Bitcoin mining hosting service is critical, but with so many options, how do you decide?
Asking the right questions is key to avoiding rookie mistakes and costly errors down the road.

In this article, we cut through the noise and highlight the 10 questions every investor must ask about a Bitcoin mining hosting service.
By the end, you’ll know how to select a reputable, reliable, and affordable service tailored to your needs.

We’ll provide a quick rundown of the pros and cons of using a hosting service, from ease of use to security. But the meat lies in the 10 key questions—your guide to picking the perfect mining host and maximizing your investment.
So plug in your rigs, and let’s get mining!

EZ Blockchain hosting services

1. What Type of Service Are They Providing?

Before you contract a mining hosting service provider, you want to understand the type of service they provide. That way, you save yourself unnecessary stress and possible financial losses.

Here is a quick list of what the service involves for most colocation services.

  • Miners storage infrastructure
  • Power
  • Cooling
  • Security
  • Bandwidth
  • Equipment maintenance

While these are the bare minimums in a hosting package, a colocation service with some extras would be preferable. For instance, you want to ensure they maintain high-quality standard services. Do they monitor your miners around the clock to ensure maximum mining output? Does the company use specialized tools to monitor the mining process and detect problems? 

Additionally, you need to consider their mining approach regarding the type of data centers used. Most companies use purpose-built data centers, retrofitted data centers, or containers. Containers provide a more adaptable solution due to their mobility. It’s easy to deploy them where there is cheap energy, so they are currently a popular solution for hosting services like EZ Blockchain.

Purpose-built data centers may provide quality services, but they may come at a cost. They are quite capital-intensive, and this may reflect on the hosting package. Retrofitted data centers may cost less to establish. They are typically warehouses, mills, or smelters converted into colocation data centers. However, their energy costs may be high. Most depend on the national grid, and it’s impossible to move them to use alternative or stranded energy.

2. What’s Their Pricing Approach and Cost Per kWh?

Understanding the Bitcoin mining hosting service costs intricacies helps you break down the different packages and see where there’s value for money. Ideally, the mining hosting service cost is a subject of several factors that include:

  • Power
  • Space
  • Infrastructure (racks, cabinets)
  • Bandwidth
  • Security
  • Cooling
  • Maintenance
  • Additional services

Each colocation service determines the cost of their services based on their situation. They can adopt a costing model based on any of these factors. However, most of them tend to use the power consumption model.

Notably, there are significant differences in power costs across different countries and locations. Consequently, you should expect each data center to offer different packages to cater to the energy costs in their region as appropriate.

EZ Blockchain hosting services


However, some data centers are using alternative energy sources and are thus able to provide value for their clients. Due to their access to cheap and alternative energy, companies like EZ Blockchain can provide low rates of between $0.067-$0.08 per kWh.

To be clear about the pricing, it may help to probe further and ensure you understand the contract terms. Check the price per kWh, compare it with competitors, and determine if there are extra charges for maintenance, installation, and any extras.

Typically, a good hosting service will have no hidden costs. The hosting company should know how to find cheap and sustainable power that guarantees maximum possible uptime at reasonable rates. 

3. How is Their Energy Supply, and What Type of Energy Do They Use?

EZ Blockchain hosting services

By RCraig09 – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=134464385

For your miners to work efficiently, they need an uninterrupted power supply to ensure they have the maximum possible uptime. As a result, you want to know whether a colocation service has the power supply and backups to ensure your miners do not stop. 

The ideal colocation service should have a reliable power source with enough power capacity to meet the demands of its clients. Most companies reveal their power capacity in their different data centers so you can get the figure easily. 

Besides the primary power source, a backup supply is also indispensable. It gets even more critical if the company relies heavily on the national grid. Grids are prone to breakdowns which can affect your mining output massively. Therefore, only engage companies with automated power backups that step in immediately after a disruption occurs. 

Further, with the high power consumption associated with Bitcoin mining and the massive carbon footprint, it makes sense to determine the type of energy used. Renewable energy sources of wind, solar, gas, and nuclear provide solutions for the massive carbon footprint. Additionally, they provide an alternative to the rising electricity cost, Therefore, crypto mining hosting providers who use renewable energy can provide hosting services at more affordable rates. 

4. Is The Location Convenient?

The cryptocurrency space still needs a solid governing structure. As a result, there are different rules across different regions. You want to consider the governing environment of the mining hosting company’s location to see if it’s favorable for uninterrupted mining. 

For instance, due to weak crypto mining laws, some regions are more open to Bitcoin mining. In others, you may find a complete ban or strict laws regarding mining activities. For you to carry out profitable Bitcoin mining, ensure your hosting company operates in a place with a stable and supportive legal structure for Bitcoin mining.

Additionally, you need to consider the location in terms of the climate. Although the right hosting company maintains your mining equipment in the best conditions, the climate plays a part concerning durability and performance. Above all, the location could affect the mining costs to your advantage. For instance, a data center in low-temperature regions can reduce or eliminate the need for expensive cooling operations and the possibility of equipment failure.

Finally, think about access to cheap or alternative energy. For example, a data center in oil fields can use wasted or flared gas and tap it for Bitcoin mining. EZ Blockchain is one of the crypto mining hosting companies that have data centers in oil fields, giving them access to cheap renewable energy. This translates to more affordable rates for their clients. 

5. Do They Guarantee Miner Security?

Bitcoin mining equipment comes at a high cost, depending on the type of miners you use. According to an article published in September 2023, a Bitmain Antminer S19 HP Hyd costs $8,481. Even so, miners can use hundreds of miners to contribute the highest computing power in the network. Thus, a colocation facility can have tens of hundreds of miners at a given point.

With such figures, it’s evident that colocation services need top-notch security protocols to guarantee the safety of the miners. They must have adequate physical and network security features. At the minimum, they should have active surveillance cameras with video backups, biometric sensors, and physical security personnel. Network security measures should also be in place, including DDoS protection, firewalls, and data encryption.

6. What Type of Cooling Do They Use?

EZ Blockchain hosting services

Bitcoin mining generates about 100 TWh of heat annually. Even though the mining process requires large amounts of power, much of the electricity dissipates as heat. Miners must invest in cooling systems to protect their machines from damage by the excess heat. 

For a data center hosting thousands of miners, it takes more than just the basic air conditioning or computer fans to cool the machines. Investing in high-quality cooling systems is indispensable for a data center.

Ideally, there are two types of cooling systems:

  • Air-cooled systems
  • Immersion-cooled systems

Air cooling is more affordable and is the most widely used cooling system. It involves using ventilation, heatsinks, high-velocity fans, and sometimes cooling containers to dissipate the heat. Atmospheric air is forced to blow over the mining rigs’ components, but recirculated air can also be used.  Typically, air-cooled systems are cost-effective, readily available, easy to install, and versatile. 

Immersion cooling, on the other hand, is considered a more advanced or emerging cooling technique in Bitcoin mining. Here, you can use a closed-loop system with a liquid coolant circulating within the loop to absorb and dissipate heat. The miners can also be completely submerged in a thermally conductive fluid with excellent insulating properties. With the liquid in direct contact with the miners, the method is highly efficient. It guarantees excellent cooling and quiet operation and gives room for overclocking. 

7. How Are The Air Filtration Systems?

Air filtration systems help to remove dust, debris, and any other unwanted particles that may find their way onto the miners. The systems ensure there is no accumulation of particles on the miners. That way, the miners can perform better and have a longer lifespan. An air filtration system is essential where air cooling systems such as dust and debris can quickly enter the miners through the circulating air. 

Besides having an air filtration system, the ideal colocation service provider should also prevent the corrosion of miners with water or humidity. They can integrate temperature and humidity sensors in the filtration system for humidity control. 

With these features, you can rest assured that your mining equipment will serve you long enough and provide value for your money. 

8. Does the Company Maintain Redundancy?

Does the Bitcoin mining hosting company provide a redundant network, power, and cooling system? It’s a desirable feature that will ensure your miners run 24/7. When your mining rigs are idle, you are not mining any Bitcoin, so you are not making any profits during that period. Most serious miners will want a 99.9% redundancy, although this comes at a cost.

Adding redundancy could add up to $650 per square foot of data center space, which could harm the return on investment. You can weigh between the redundancy costs and having your miners idle for about 36 hours annually. 

9. The Colocation Service Reputation and Adaptability?

You feel at ease about your Bitcoin mining operations by contracting a reputable colocation service provider. Here, you want to ascertain the company’s character by seeking unbiased reviews and opinions of former and existing clients. You can explore reliable sources such as industry forums and review websites to see the hosting service providers’ performance, trustworthiness, and client satisfaction. 

Look into the company’s history and the people in charge and confirm their capacity to store your data on their servers securely. This includes knowing who will handle your private keys and whether they are insured. Also, find out whether there are recent cases of losses due to inappropriate data management cyber breaches due to faulty software.

Additionally, as the Bitcoin mining industry grows, it is critical to have a hosting service provider that grows along and is adaptable to changing markets. You can examine if the company offers flexible choices for adjusting your hashing power or the general contract to suit arising needs. Think about how easy it is to add or remove mining equipment. If it is easy to scale up or down, the hosting service can accommodate changing market conditions. 

10. Are their Mining Equipment Maintenance and Customer Support Reliable?

Quick and qualified customer support is essential when dealing with technological difficulties or inquiries. Consequently, you must establish whether the hosting company provides round-the-clock customer support. You should be able to reach the support team anytime via different contact methods like email, phone calls, or live chat on their website. 


EZ Blockchain hosting services

Further, evaluate the company’s technical skills to ascertain how effectively they can handle the maintenance requirements. An experienced team will help you improve your miners by diagnosing issues and recommending appropriate strategies for the most efficient mining operation. They should be able to fix problems onsite and provide a comprehensive inventory of parts and pieces.

Some companies work directly with the mining rig manufacturers. The direct contact simplifies warranty repair logistics and out-of-warranty advanced repairs. Your miners can get corrected with speed and continue to mine.

The Pros and Cons of Bitcoin Mining Hosting Service?


  • Convenience. Convenience is the most significant advantage associated with a mining hosting service. Ideally, the company agrees to handle all the hassles related to crypto mining for a fee. Therefore, once your miners are at the hosting facility, you will be mining and profiting from Bitcoin without doing a thing. 
  • Round-the-clock specialized monitoring of mining rigs. Miners need the maximum possible uptime to be profitable. As such, they need constant monitoring. A hosting service monitors the operation of the miners for you. Sometimes, they use specialized software to detect faults in your Bitcoin mining setup. 
  • Time-saving. With the colocation service provider handling all the technicalities for you, it helps you save the time you would spend running and manning the setup. That way, you have time for other activities besides Bitcoin mining. 
  • Cost-effective. Most hosting service providers can access cheap energy due to the economies of scale. Consequently, they can offer you power prices that are lower than what solo miners would pay for home mining. Additionally, investing in the entire Bitcoin mining infrastructure would be quite costly. 
  • Top-notch security. Most colocation service providers invest in top-level security. They have security cameras, sensors, and security personnel. That way, they provide advanced security to your mining rigs than a solo miner would manage.
  • Professional maintenance and repair. It’s hard to rule out that miners can break down at any point. As such, hosting services ensure they have a professional technical team to address maintenance issues when they arise. Additionally, some work with the equipment manufacturers for warranty repairs and trustworthy equipment maintenance.
  • Redundant network, power, and cooling. It’s more costly to maintain a redundant network, power, and cooling infrastructure. Therefore, working with a facility that guarantees redundancy is a plus. 


  • Limited control over the mining operations. Once you deliver your mining rigs to the hosting facility, they handle all the mining operations for you. You no longer have control over your miners. 
  • Overreliance on the trust and integrity of the hosting solution. Working with a crypto mining hosting service means you have to trust them and rely on their integrity. Accept to give up your high-value equipment and trust that they will run the mining operations as per the contract and keep your miners safe. 
  • Service fees. You must pay a hosting fee to the provider, which reduces your Bitcoin mining profits. Also, the service fee varies among the hosting service providers.

Summing Up

Bitcoin mining can be lucrative but comes with its share of challenges. From acquiring high-value mining equipment to handling the complexities of setting them up and ensuring continuous mining. As a result, it makes sense to tread carefully when looking for a mining hosting service. You should ensure you are working with a company you can trust and one that steers profitable Bitcoin mining. 

Luckily, with Bitcoin mining hosting service providers like EZ Blockchain, you can enjoy a streamlined mining experience. The company guarantees the fastest deployment of your mining rigs and a 95% uptime. They constantly seek cheap power and will provide between $0.067 and $0.08 per kWh. Besides, over 65% of their power comes from renewable energy, which ensures your Bitcoin mining profits do not come at the expense of the environment. 

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