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Hosted Mining vs. Mining at Home: Which Is Right for You?

Hosted mining runs your ASIC at a professional facility; home mining runs it in your house. For most people starting bitcoin mining in 2026, hosted mining wins on three dimensions: lower electricity cost, no industrial noise or heat, and zero operational burden.

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  2. Resources
  3. How to Start Mining
  4. Hosted vs. Home
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On this page
  1. 01What Each Approach Requires
  2. 02The Electricity Cost Gap
  3. 03When Home Mining Makes Sense

This page explains what each approach requires, where the real costs are, and when home mining makes sense.

What Each Approach Requires#

Home Mining

  • Electricity: 18.3 cents per kWh (US residential average, July 2026, EIA)
  • Noise: ~75 to 85 dB continuously
  • Heat: ~3,500W+ thermal output
  • Electrical: dedicated 20A 240V circuit (possibly panel upgrade)
  • Insurance: separate hardware policy
  • Operations: you monitor and manage

Hosted at Fathom Labs

  • Electricity: $0.07/kWh all in (miners bought from us)
  • Noise: facility handles it
  • Heat: facility handles it
  • Electrical: facility handles it
  • Insurance: separate hardware policy (not included in the installation fee)
  • 24/7 NOC monitoring included

The Electricity Cost Gap#

The most important cost difference is electricity rate. On a 3,500W miner:

ScenarioRateMonthly electricity (3,500W, 24/7)
US residential average (July 2026)$0.183/kWh$461
Fathom Labs: hosted$0.07/kWh all in$176

Monthly hours = 720. US residential average = 18.3 cents per kWh for July 2026 (EIA Electric Power Monthly); actual rates vary by state and tier. This is a cost comparison only, not a profit projection.

When Home Mining Makes Sense#

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Very cheap electricity:If you have access to power below ~$0.06 to $0.07/kWh (off grid solar, rural industrial rate, or negotiated business rate), home mining can be cost competitive with hosted. Mining from Taiwan? See the Taiwan home mining vs US hosting cost comparison.
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Learning or experimentation:If hands on access and learning are part of the goal, running a small machine at home makes sense regardless of economics.
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Existing infrastructure:If you already have a suitable outbuilding or garage with industrial grade electrical and ventilation, the upfront cost barrier is lower.

Questions

Frequently Asked Questions

Hosted bitcoin mining (also called colocation mining) means your ASIC hardware runs at a professional data center facility rather than at your home. You own the machine; the hosting provider owns the infrastructure. They supply power, cooling, network connectivity, and monitoring. You receive 100% of the mining output. At Fathom Labs, hosted mining costs $0.07/kWh all in for miners bought from us, plus a one time $30 installation fee.

Yes, technically, but home mining is challenging for most people. ASIC miners are loud (~75 to 85 dB), generate significant heat (~3,500W+), require dedicated 20A electrical circuits, and need continuous monitoring. US residential electricity also averaged 18.3 cents per kWh in July 2026 (EIA), more than double the rate at competitive hosted facilities. Home mining works when you have very cheap electricity (under ~$0.07/kWh) and are comfortable managing the hardware yourself.

For a beginner, hosted mining offers: (1) lower electricity rate ($0.07/kWh vs. a US residential average of 18.3 cents per kWh in July 2026, EIA); (2) no noise or heat in your home; (3) no need for specialized electrical infrastructure; (4) professional 24/7 NOC monitoring so you don't have to watch the machine; and (5) ability to scale (add more miners) without physical constraints.

At Fathom Labs: (1) You buy a Whatsminer M70, M70S, or M73 (from us, or bring your own in orders of at least 10 units); (2) pay the $30 installation fee; (3) we coordinate shipping to our Southeast Texas facility; (4) we install and configure your miner, pointing it at your mining pool and wallet; (5) your machine hashes 24/7 at $0.07/kWh all in ($0.08/kWh for miners you bring yourself); and (6) payouts go directly from the pool to your Bitcoin wallet.

Start hosted mining today

Contact us to discuss your hardware and get started at $0.07/kWh in Southeast Texas.