Revenue and Profit Split Models

Since the 2024 halving, mining profit margins have been suppressed. In such an environment, fixed-cost agreements (e.g., fixed hosting fees, fixed power rates) can become unsustainable for either the miner or the hosting provider. This is why profit- and revenue-share models have gained popularity as alternative financial structures. But how do these models differ, and what are the pros and cons for the parties involved in mining operations? Let’s find out. Fixed-Cost Agreements Flat Fee or...