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Look beyond the advertised electricity rate. A Bitcoin mining hosting agreement determines who pays for power, minimum usage, repairs, downtime, curtailment, insurance, monitoring, and the eventual removal of your machines. Read the signed agreement together with every service order, equipment schedule, exhibit, and incorporated policy before delivery, renewal, or a dispute.
The public contracts discussed below are examples from particular commercial deals, not industry standards or legal advice. Your rights depend on the executed documents and governing law.
What does a Bitcoin mining host actually provide?
A host may supply rack space, electrical capacity, cooling, internet connectivity, physical security, monitoring, and maintenance. You may still own the ASIC miners and remain responsible for charges and risks that the contract assigns to you. The agreement should separate customer-owned equipment from host-owned racks, transformers, switchgear, buildings, and other infrastructure.
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Make sure the order reserves the facility capacity and electrical service that will actually serve the listed machines. A contract can describe hosting generally while a service order controls the number of racks, amperage, voltage, commissioning date, and location.
How is the total price calculated?
A quoted cents-per-kilowatt-hour figure is only one input. Identify every recurring and one-time amount, the meter used, the measurement point, the billing period, taxes, deposits, late fees, demand charges, setup fees, management fees, pool charges, and pass-through utility costs.
Questions to answer in the pricing clause
- Is electricity billed per kilowatt-hour, as a fixed monthly amount, as a capacity reservation, or through a combination?
- Which meter controls the invoice, and can you inspect raw readings or request a reconciliation?
- When can the rate change, how much notice is required, and can the host pass through taxes, demand charges, grid fees, or other costs?
- Are there minimum monthly payments even when miners are offline or mining is unprofitable?
- When are invoices due, what is the late charge, and may the host suspend equipment for a disputed amount?
Minimum-use and take-or-pay obligations
Look for language requiring payment for reserved capacity rather than actual consumption. A PWRU agreement filed with the U.S. Securities and Exchange Commission in 2026 requires 80% of contracted demand as a monthly minimum utilization and applies a shortfall charge, subject to specifically listed exceptions. Its monthly utilization report can become final after a short dispute period. That 80% threshold is a term of that contract, not an industry benchmark.
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Ask whether equipment failure, low Bitcoin prices, pool problems, customer-requested shutdowns, utility interruptions, maintenance, and force majeure qualify as exceptions. The agreement should say how a shortfall is calculated and whether the host must provide meter data before charging it.
What does the uptime promise really cover?
Do not accept a headline availability percentage without its denominator and remedy. Define whether availability means energized power, internet connectivity, rack access, or functioning hash rate. Specify the measurement interval, reporting source, treatment of individual miner failures, planned maintenance notice, and permitted downtime.
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A Sentinum/Montana OP Hosting Services Agreement effective 2025 and filed with the SEC states 90% annual availability for specified power and internet services. The commitment is qualified by curtailment and maintenance exceptions, so the percentage cannot be read as a guarantee that every miner hashes 90% of the year.
Service-level remedies
State what happens after a miss: a service credit, fee reduction, termination right, or another remedy. Check whether that remedy is exclusive and whether credits are capped. Require monthly or annual calculations that let you reproduce the result from the host’s data.
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How are curtailment and suspension handled?
“Curtailment” can describe several different events: an economic shutdown ordered by the host, a utility or grid restriction, scheduled maintenance, a safety shutdown, a customer-requested pause, or force majeure. Each event should have its own trigger and billing rule.
Key curtailment terms
- Who has authority to switch off your miners, and must the host act in a defined order among customers?
- What notice is required, and when may an emergency shutdown occur without notice?
- Must the host provide utility notices, power-price records, meter readings, or other evidence?
- Do electricity, hosting, minimum-use, or management charges continue while equipment is curtailed?
- What conditions permit restart, and is there a target time once power is available?
One filed commercial agreement requires notice as soon as possible and within one hour for a specified host-initiated economic curtailment, together with supporting information such as power-cost data. That is a negotiated obligation in that agreement. Compare it with any take-or-pay exceptions in your own contract rather than assuming every shutdown stops billing.
Who pays for maintenance, repairs, and replacement?
Separate routine inspections and cleaning from non-routine diagnosis, board repair, firmware work, component replacement, and third-party services. The contract should set response targets, repair targets, approval thresholds, labor rates, parts markups, warranty procedures, and shipping responsibilities.
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A Greenidge hosting agreement filed with the SEC in 2023 caps documented customer repair labor at $75 per hour and charges parts separately. That rate is specific to that example, not a market price. Your agreement should also explain what happens when a miner is uneconomical or impossible to repair, who chooses replacement parts, and how long a replacement may remain offline.
Controls for repair invoices
- Require a diagnosis, photographs or test results where appropriate, labor time, parts list, and return-shipping record.
- Set a dollar amount above which the host needs written approval, except for emergency safety work.
- Give you a process to challenge a diagnosis or invoice without losing access to undisputed services.
- State whether warranty claims are filed by you or by the host and who pays shipping to the manufacturer.
What ownership, custody, insurance, and liability language matters?
Confirm that title to your miners remains yours and that the host receives only the rights needed to install and operate them. Address liens, seizure rights, relocation, commingling, and access to serial-number records if the relationship ends.
Review physical security, access logs, cameras, fire suppression, temperature and humidity controls, water protection, and incident-notification deadlines. Insurance schedules should identify policy types, limits, deductibles, exclusions, additional-insured status, and proof-of-coverage delivery.
An SEC-filed agreement states that the host’s insurance primarily covers exterior building structures rather than customer contents. Therefore, “insured facility” does not necessarily mean your miners are insured for replacement value. Ask for the actual policy evidence and determine whether you need separate equipment, transit, business-interruption, or cyber coverage.
Read liability caps, waivers of consequential damages or lost mining revenue, indemnities, negligence carve-outs, and claims procedures. A low liability cap can leave you bearing most of the loss after fire, theft, water damage, or an unauthorized repair.
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Can you verify miners, pool accounts, and payouts?
Require operational records that connect the physical machine to the digital account. The host should identify each serial number, rack position, worker name, pool account, firmware state, offline status, repair ticket, and return-to-service date.
Mining and wallet controls to specify
- Name the permitted pool and state who may change pool, worker, firmware, or power settings.
- Use a separately identifiable pool subaccount for your hashrate and rewards.
- Specify the wallet address, payout threshold, fee deductions, key custody, and process for changing payout instructions.
- Reconcile pool-side shares with facility-side meter or monitoring data and preserve raw records.
- Test dashboard, API, ticketing, and wallet access before a failure occurs.
A Greenidge SEC-filed exhibit (2023) says: “Host shall provide weekly reports for the first month after the Commencement Date of the applicable Order and then API access thereafter to ticketing software that provides status updates related to mining servers that are offline or in repair.” Ask for equivalent detail in your own order, including retention of historical data.
What term, renewal, and exit clauses should you negotiate?
Record the initial term, commencement trigger, automatic-renewal date, notice deadline, cure period, rate-reset mechanism, assignment rights, change-of-control provisions, insolvency events, and termination rights after prolonged outage or loss of the host’s power contract. Do not assume switching off miners ends payment obligations.
Plan the physical exit
- Specify who removes miners from racks and whether deracking or packing fees apply.
- Assign responsibility for storage, shipping, customs, insurance in transit, and destination delivery.
- Set the equipment-retrieval deadline and the host’s notice process if you miss it.
- Address liens or sale rights and require an itemized inventory at release.
A Fortitude Mining/SPRE Watonga agreement effective 2026 allows the host, at its election, to assume ownership of equipment deemed abandoned if removal is not arranged within 90 days after the term or termination. That 90-day period is a contract-specific example showing why retrieval deadlines deserve calendar reminders.
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Require regular reports showing energy usage, utilization, miner uptime, repairs, pool performance, fees, credits, curtailment periods, and shortfalls. Identify the person or portal that receives notices and preserve meter, API, and ticket data in a usable format.
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Set a review window long enough to detect billing errors and state whether an unchallenged report becomes final. One filed agreement provides monthly utilization reporting and a 10-day good-faith dispute window. Treat that deadline as deal-specific; negotiate a period your team can realistically meet.
How do you compare two hosting offers?
Normalize both offers before comparing headline power rates. Use the same expected load, utilization, taxes, demand charges, curtailment assumptions, repair frequency, and exit scenario.
| Comparison area | Questions to put side by side |
|---|---|
| All-in cost | What is the complete formula, minimum commitment, deposit, pass-through cost, and payment timing? |
| Service level | What service is measured, what exclusions apply, how is it reported, and what remedy follows a miss? |
| Curtailment | Who decides, what notice and evidence are required, and which charges continue? |
| Repairs and risk | Who authorizes work, pays labor and parts, carries insurance, and bears loss or damage? |
| Transparency | Can you trace serial numbers to workers, tickets, pool accounts, payouts, and meter data? |
| Term and renewal | When can rates change, how does renewal work, and what cure or termination rights exist? |
| Exit cost | What are deracking, packing, storage, shipping, customs, lien, and abandonment consequences? |
No public example establishes a universal rate, uptime target, repair price, or preferred provider. Compare the written obligations and their financial consequences, not marketing labels.
What should you do before signing?
- Assemble the master agreement, service orders, equipment schedule, exhibits, insurance certificates, acceptable-use rules, and incorporated policies.
- Mark every amount, formula, minimum, deadline, notice method, and exception in a single payment and obligations worksheet.
- Ask the host to demonstrate monitoring, ticketing, pool-account separation, payout controls, and data export.
- Obtain written answers to unresolved ownership, curtailment, repair, insurance, and removal questions; attach them to the order.
- Set calendar reminders for invoice disputes, renewal notice, cure periods, and equipment retrieval.
- Have independent counsel review governing law, forum or arbitration, indemnity, liability limits, and enforcement costs for the relevant jurisdiction.
These contracts are commercial arrangements between identified parties, and terms can change. A professional review cannot guarantee profitability, uptime, or recovery after a loss, but it can expose obligations that a low power rate conceals.
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