r/Bitcoin • u/Various-Tax1145 • 29m ago

Hashpower Operation using COLO/Hosting

Has anyone attempted to open a business that mines BTC through a hosting service? (Abundant mines, compassmining, etc).

If so, how has the experience been? Positives? Negatives?

Brainingstorming ways to get into the mining space, but residential mining is just too expensive.

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u/Budget-Fee804 22m ago

Tried it with a hosting service about two years back and the margins were way thinner than I expected. Power costs and maintenance fees ate up most of what I thought would be profit, and when BTC dipped it got stressful fast.

The convenience of not dealing with noise and heat was nice but you're still at the mercy of their uptime and whatever contract terms they spring on you. If you go this route make sure you understand every fee before signing anything.

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u/Various-Tax1145 3m ago

Its not really about the noise and heat, but the electrical cost. I understand this asset has price swings, but it looks like it could be profitable regardless.

Did you do this as a business or personally? I only ask as there are tax related incentives involved that may take pressure off when it comes time to pay uncle Sam.