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Look past the advertised electricity rate. A Bitcoin mining hosting agreement should let you calculate the complete cost, identify who controls power and curtailment, define uptime and remedies, allocate repair and loss risks, show how hashrate and payouts are tracked, and give you a practical way to retrieve your machines at the end. Read the agreement, every service order, equipment schedule and incorporated policy together; a headline rate or uptime promise is not enough.
The public contracts cited below are agreements between particular parties, not industry standards or legal advice for a specific jurisdiction. Use them as examples of clauses that deserve careful review, then have counsel check the version you will actually sign.
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Start with the all-in price, not the cents-per-kilowatt-hour figure
Ask the host to provide a written formula showing every amount you can owe and when it is billed. A low energy rate can be outweighed by capacity reservations, management fees, minimum-use commitments, deposits, taxes, demand charges, pool deductions, setup work and removal costs.
Build a complete charge schedule
- Energy: State whether billing is based on dollars per kilowatt-hour, a fixed monthly amount, a utility pass-through, reserved capacity or a combination.
- Measurement: Identify the meter, measurement point, voltage conversion and treatment of losses. Ask whether the host can use a facility-wide meter and, if so, how your share is allocated.
- Recurring fees: List rack space, hosting, management, monitoring, internet, pool or account fees separately from power.
- One-time fees: Confirm intake, installation, configuration, deposit, testing, deracking, packing and shipping charges.
- Pass-through costs: Define utility demand charges, taxes, regulatory assessments, customs, emergency work and other third-party expenses.
- Payment mechanics: Specify invoice dates, payment currency, late fees, security deposits, offsets, reconciliation and the host’s right to change rates.
Require an example invoice using your actual number of miners and contracted load. The example should show a normal month, a month with a shutdown and a month in which usage falls below any minimum. If the host cannot explain an invoice before signing, you will have difficulty disputing it later.
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Check minimum-use and take-or-pay language
Some contracts make you pay for reserved power even when your miners are offline or mining is unprofitable. Read the definition of contracted demand, the utilization calculation and every exception. Confirm whether a failed miner, delayed shipment, pool outage or market downturn still counts as your obligation.
A PWRU agreement filed with the U.S. Securities and Exchange Commission in 2026 illustrates the issue: it uses an 80% monthly minimum-utilization requirement, with a shortfall charge and specified exceptions. Its monthly report can become final after a limited dispute period. That is a term in that agreement, not a market benchmark. Your contract should state the baseline, formula, exceptions, report delivery date and the time you have to challenge the calculation.
Make the equipment schedule and ownership unambiguous
Attach an inventory to the signed agreement and each service order. For every miner, record the make, model, serial number, condition, accessories, delivery date and owner. Photograph the equipment and preserve the serial-number list with the shipping records.
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- State when risk transfers to the host on delivery and what acceptance inspection is required.
- State who bears risk while a machine is racked, in a repair area or awaiting shipment.
- Define the risk of loss during return transport and identify the party that chooses the carrier and insurance.
- Say whether the host may move, reconfigure, underclock, overclock, repair or substitute hardware, and when your written consent is required.
- Confirm that the facility, rack position and power capacity in the order actually serve the listed equipment.
Public agreements distinguish customer-owned miners from host-provided racks, power, cooling and related infrastructure. Keep those categories separate: ownership of a building component does not establish ownership or insurance coverage for your ASICs, control boards, cables or data.
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Read uptime promises with their denominator and remedy
“Uptime” can refer to energized power, internet access, rack availability or a miner producing hashrate. Ask for the exact service being measured, the interval, the calculation method, the data source and the treatment of individual-machine failures.
Questions that make a service level meaningful
- Is availability measured per miner, per rack, per site or across your entire order?
- Does the clock run continuously, and are startup, commissioning and repair periods included?
- How are planned maintenance, utility outages, curtailment, force majeure and customer-caused events excluded?
- How much advance notice is required for planned work?
- What evidence can you obtain: meter logs, network monitoring, ticket history or pool data?
- What follows a miss: a service credit, fee reduction, termination right or another remedy?
- Is that remedy exclusive, and does it cover lost mining revenue?
A Sentinum/Montana OP Hosting Services Agreement effective in 2025 states 90% annual availability for specified power and internet services, while also listing curtailment and maintenance exceptions. The percentage has no useful meaning if those exclusions, the denominator and the remedy are omitted from your copy.
Separate every kind of curtailment and suspension
“Curtailment” may describe an economic decision to reduce power when electricity is expensive, a utility or grid restriction, scheduled maintenance, a safety shutdown, a customer-requested pause or a force-majeure event. Each category should have its own trigger and billing rule.
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Put decision rights and notice in writing
- Identify who can order a shutdown and whether the host must prioritize safety or grid instructions.
- Require the host to state the reason, expected duration and restart conditions.
- Set notice rules for planned and emergency events. A public agreement requires notice as soon as possible and within one hour for a specified host-initiated economic curtailment, together with supporting power-cost information.
- Require records showing the relevant utility instruction, power price, site condition or maintenance ticket.
- State whether energy, hosting, minimum-use or other fees continue during the event.
- Define restart order, testing, temperature limits and who pays for damage caused by repeated cycling.
Do not assume a curtailment exception automatically excuses a minimum-use charge. Compare the curtailment section with the take-or-pay section and make sure the same event is treated consistently in both.
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Define maintenance, repair and replacement before a miner fails
Separate routine monitoring and cleaning from non-routine diagnosis, board replacement, firmware work and third-party repairs. The agreement should include response targets, repair targets, approval thresholds and a path for challenging a diagnosis.
Specify the economics of repair
- Set labor rates, minimum billing increments and whether travel or contractor charges are passed through.
- Explain parts pricing, markup, warranty handling and who pays shipping to and from a repair center.
- Require itemized work orders identifying the serial number, symptoms, tests, parts and technician.
- Set a dollar threshold below which the host may proceed without approval, and require written approval above it.
- Explain what happens when a miner is uneconomical or irreparable: return, salvage, replacement or disposal.
- State how long replacement equipment may remain offline and whether a substitute machine can be installed.
Greenidge hosting terms filed with the SEC in 2023 provide one contract-specific example: documented customer repair labor is capped at $75 per hour, while parts are charged separately. That figure is not a general repair price. Negotiate the rate and parts treatment that apply to your order.
Do not confuse facility insurance with coverage for your miners
Review physical security, access controls, fire protection, temperature and water monitoring, incident notification and preservation of access logs. Then read the insurance schedule and liability clauses line by line.
Insurance questions to answer
- What policies cover the building, racks, power equipment and customer contents?
- Are your miners insured for replacement value, depreciated value or not at all?
- What are the limits, deductibles, exclusions and geographic boundaries?
- Can you be named as an additional insured or loss payee?
- Will the host provide certificates and relevant policy language, not just a statement that the site is insured?
- What notice and claims procedure applies after theft, fire, water damage or mishandling?
One SEC-filed agreement says the host’s insurance primarily covers exterior building structures rather than customer contents. Another requires specified liability coverage and evidence of insurance. Treat “insured facility” as an invitation to verify coverage, not proof that your machines are protected.
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Read liability and indemnity together
Look for caps, exclusions of lost mining revenue and consequential damages, negligence or willful-misconduct carve-outs, indemnity duties, limitation periods and claim procedures. A low liability cap can leave you carrying nearly all equipment and revenue risk even when the host controls the site.
Demand traceable monitoring, pool and payout controls
Your operational records should connect each physical miner to its software identity. Require a serial-number-to-worker-name map, offline and repair status, ticket numbers, meter or utilization reports and pool-side hashrate data.
Lock down digital control
- Name the pool account, subaccount and worker format used for your equipment.
- State who may change pool destinations, wallet addresses, firmware or operating settings.
- Define wallet-key custody, approval steps for payout changes and incident response for compromised credentials.
- Specify how pool fees, hosting deductions and payout timing are calculated.
- Require a test of dashboard, API and ticket access before the commencement date.
A Greenidge SEC exhibit promises weekly reports during the first month after the applicable order’s commencement and API access thereafter to ticketing software with status updates for servers that are offline or in repair. Other agreements require separately identifiable pool subaccounts and granular status data. Make those operational promises part of your order, with a contact and escalation path.
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Mark every notice deadline on a calendar. Check the initial term, automatic renewal, unilateral rate changes, assignment and change-of-control rights, insolvency triggers, breach notice, cure periods, prolonged outage rights and the host’s right to suspend service.
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Write the removal procedure in operational detail
- Identify the termination date and the date on which billing stops.
- Set the deracking, packing, storage, shipping and customs charges and who selects the carrier.
- State whether the host may assert a lien for unpaid invoices and how you can contest it.
- Set an equipment retrieval deadline and the documents needed to release machines.
- Describe what happens to machines left at the site after that deadline.
The Fortitude Mining/SPRE Watonga agreement effective in 2026 allows the host, at its election, to assume ownership of equipment treated as abandoned when removal has not been arranged within 90 days after the term or termination. That is a powerful reason to arrange retrieval in advance and to understand storage and shipping costs.
Require records and a workable dispute process
Invoices should be accompanied by energy usage, utilization, uptime, repairs, pool performance, credits, shortfalls and curtailment records. Ask the host to retain raw meter, API and ticket data for a defined period and to identify the person responsible for reconciliation.
Set a review window long enough to inspect the data. One public agreement provides a monthly utilization report and a 10-day good-faith dispute period; its finality language is specific to that deal. Your agreement should say whether undisputed amounts remain payable, whether disputed sums can be withheld, and how an unresolved issue escalates to management, mediation, arbitration or court.
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Build a side-by-side model using identical miner count, power draw, operating hours, curtailment assumptions, repair frequency and exit date. Compare the following axes rather than headline cents per kilowatt-hour:
| Comparison axis | What to normalize and verify |
|---|---|
| All-in cost | Energy formula, minimum commitment, demand charges, deposits, management, pool, taxes, repairs and exit fees |
| Service scope | Power, internet, rack access, monitoring and the availability denominator, exclusions and remedy |
| Curtailment | Decision authority, notice, evidence, customer priority, billing during shutdown and restart obligations |
| Repair and loss | Approval rights, labor, parts, shipping, insurance, liability cap and excluded damages |
| Transparency | Serial-to-worker mapping, dashboards, API or ticket access, meter data and payout controls |
| Contract flexibility | Term, renewal, rate resets, cure periods, suspension rights and termination options |
| Exit cost | Deracking, packing, storage, freight, customs, lien process and retrieval deadline |
No public example establishes a universal benchmark or preferred provider. The better offer is the one whose assumptions, records and remedies you can verify and whose downside you can finance.
Source-backed figures to keep attached to their contracts
| Figure | Contract and qualification |
|---|---|
| 80% monthly minimum utilization | PWRU agreement filed with the SEC, 2026; a contractual threshold with stated exceptions, not an industry statistic |
| 90% annual availability | Sentinum/Montana OP Hosting Services Agreement effective 2025; applies to specified power and internet services and is qualified by curtailment and maintenance exceptions |
| $75 per hour maximum repair labor | Greenidge hosting terms filed with the SEC, 2023; documented labor cap in that example, with parts charged separately |
| 90 days to arrange removal | Fortitude Mining/SPRE Watonga agreement effective 2026; failure to arrange removal can lead to deemed-abandonment treatment at the host’s election |
Use a final signing checklist
- Attach the complete miner inventory and ownership schedule.
- Attach the service order showing contracted load, rack location and commencement date.
- Calculate a sample invoice, including a minimum-use shortfall and a curtailment month.
- Mark the uptime denominator, exclusions, data source and remedy.
- Define each curtailment category, notice rule, evidence requirement and billing consequence.
- Approve repair thresholds, labor, parts, shipping and irreparable-equipment treatment.
- Obtain insurance limits, exclusions, deductibles and proof of coverage for customer contents.
- Test worker names, pool subaccounts, wallet controls, dashboard and ticket access.
- Set reporting frequency, data retention, dispute window and escalation contacts.
- Calendar renewal, termination and retrieval deadlines, including storage and shipping arrangements.
- Check governing law, forum, arbitration, notice method and fee-shifting terms.
- Have independent counsel review the executed agreement and incorporated policies before a substantial deployment.
Bottom line
A Bitcoin mining hosting agreement is sound only when the economics, control rights, operational data, physical risks and exit process are explicit. Treat every percentage, rate and exception as contract-specific; reconcile the service order with the master terms; and negotiate the clauses that determine what you pay when miners are idle, power is curtailed, equipment is damaged or the relationship ends.
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