As a miner there are two common ways how to approach the business, operating your own miner fleet or by utilizing hosting services to operate your mining hardware. Both options have their advantages and challenges. Choosing between hosting services and running your own hardware depends on your financial capacity, technical expertise, and risk tolerance. Hosting services offer a convenient, lower-risk option with less operational hassle but generally at a higher ongoing cost and less control. Running your own hardware provides greater control but requires a significant initial investment and operational expertise.

Operating Your Own Miner Fleet

Whether you have a couple of ASIC miners or hundreds of machines, operating involves setting up and managing your own Bitcoin mining infrastructure. This process includes purchasing, configuring and maintaining ASIC mining hardware, installing software and setting up management tools, establishing a reliable power supply, implementing effective cooling solutions, and ensuring robust security measures.

Operating your own Bitcoin mining rigs comes with several benefits. Here are five key advantages.

1. Control of design & quality: You have complete control over the design & layout of a mining operations, including the electrical components, networking, cooling system, ASIC hardware, firmware and management software.
2. Operational autonomy: Operating your own hardware provides the ability to quickly adapt to changes in the market and make strategic decisions that best align with your goals and risk tolerance.
3. Maximized profits: All mining rewards, go directly to you without being shared with a hosting service provider.
4. Security and privacy: When operating a mining facility you control the physical and cybersecurity measures. It also ensures greater privacy regarding your mining activities and financial data.
5. Risk management: Operating minimizes the reliance on third-party services, reducing risks related to trust, service continuity, and third-party failures. You have physical possession of the mining hardware as it is located on your premises.

Although operating your own machines offers benefits, it is essential to weigh these advantages against the challenges and risks. The key challenges a miner might face are dealing with heat and noise, managing and negotiating energy contracts to secure favourable rate, high initial investment related to the infrastructure, technical complexity related to networking and (cyber) security, and ongoing operational costs.

Third Party Solutions

Hosting services are arrangements where miners can place their hardware in a facility operated by a third-party service provider like EZ Blockchain. The machines are owned by the client but physically housed, maintained and repaired by the hosting provider. The hosting provider takes care of the build-out and maintenance of the physical infrastructure, such as cooling, electricity, security, and internet connectivity. Clients typically pay a fee to the hosting provider for these services, which may be structured as a flat rate or based on factors like power consumption. Similar to operating a fleet, utilizing hosting services has its advantages and disadvantages.

Advantage of using hosting services are various, here are the five most important ones.

1. Lower initial investment: Hosting services typically require a lower upfront cost since they already have the infrastructure in place.
2. Economies of scale: With a mining fleet smaller than 500 machines, capital expenditure and operating costs might be relatively high on a per ASIC basis when operating your own miners. Because of the size a hosting service provider potentially has access to lower cheaper ASIC hardware (parts) and ancillary equipment.
3. Lower electricity costs: Hosting providers often have access to cheaper electricity. Due to the size of the load and/or location these operators can apply for industrial or other favourable types of rates.
4. Infrastructure management: Hosting services handle the infrastructure requirements of Bitcoin mining, including power, cooling, network connectivity, maintenance and repairs.
5. Expertise and support: Hosting providers often have experienced staff who can offer technical support and troubleshooting assistance. This can be especially valuable for clients who may not have the expertise or resources to manage their mining hardware effectively.

Bitcoin mining Fully owned US-based mining facilities

hosting services

Host your asic miners with us

Fully owned US-based mining facilities

From $0.069 KWH all-in

Learn more

Disadvantages to co-locating ASIC miner hardware can be summarized as follows. You have less control over the mining hardware and the environment in which it operates. Any changes or specific optimizations you want to implement might be limited by the hosting provider’s policies and infrastructure. You must trust the hosting provider to manage your equipment responsibly and securely. There’s a risk of fraud, mismanagement, or even the provider going out of business. Your mining performance is dependent on the reliability and stability of the hosting service. Any downtime or issues on their end directly impact your mining revenue. There is also a counterparty because you do not have physically possession of your ASICs miners. To mitigate these risks, it’s crucial to thoroughly research and vet potential hosting providers and regularly monitor the performance of your mining operation.

A Convenient Choice

Overall, Bitcoin mining hosting services provide clients with convenience, cost savings, expertise, and risk mitigation, making them an attractive option for individuals and companies looking to participate in the mining industry.

If you are considering Bitcoin mining hosting services, make sure to check our article about How To Choose The Best Bitcoin Mining Hosting . This article will help you navigate the maze of hosting options. We will delve into what hosting businesses are, why miners co-locate their hardware, the pros and cons, what makes a good hosting service and what elements specifically look at in a hosting agreement.

In the US alone there are over 70 hosting provider. Well known companies amongst retail miners are Compass Mining, SazMining, Blockware Solutions and Simple Mining. EZ Blockchain manages to stand out because of the personalized support and high customer service, competitive pricing of ASIC miners and hosting fees, and user-friendly dashboard providing real-time analytics on performance, power consumption, and profits, regardless of the number and location of your mining devices. Additionally, EZ Blockchain designs, builds and operates its own facility without any third party dependency.