Hosting is how most UAE buyers run a bitcoin miner. The contract decides who owns the machine, who controls the payouts and what happens when something breaks.
A bitcoin mining machine is a poor house guest. An Antminer S21 Pro, for example, is rated by Bitmain at 3,510 W. Running around the clock, that is about 2,527 kWh a month, all of it ending up as heat and fan noise. Very few UAE homes or offices are built for that, so most buyers place their machines with a hosting provider that runs them on a commercial or industrial power connection.
Hosting can be a sound arrangement. It can also be a vague one, and the vagueness usually sits in the contract. Here is what to look for before you sign.
1. Ownership is written down, machine by machine
In a genuine hosting arrangement, you own the hardware and the facility provides space, power and cooling. The contract should say that in plain words. It should also list each machine by model and serial number. The serial appears on the chassis label and in the miner’s own web dashboard, and the two should match.
If the paperwork describes you buying a share of output or a hashrate figure, rather than placing a machine you own, it is a different product. The checks below assume you own a physical machine.
2. The pool account and the payouts are yours
You should point the machine at your own mining pool account, and the payouts should go to your own wallet address. The contract should state that the facility will not change the pool settings without your written instruction.
You can check this yourself. Your pool dashboard shows each machine as a worker. If a worker goes missing, or its hashrate drops, you will see it there before anyone tells you.
3. How power is measured and billed
Power is the largest running cost, so read this clause twice. Ask three things:
- What is billed. A rate per kWh, a flat fee per machine, or a mix of both.
- How it is measured. A meter on your machine or rack, or a figure calculated from the manufacturer’s rated wattage. Rated figures carry a tolerance. Bitmain states ±5% on power for the S21 Pro, so a healthy unit draws anywhere between roughly 3,335 and 3,686 W at the wall.
- When it can change. Whether the rate moves when the facility’s own utility tariff moves, and how much notice you get.
Providers quote differently. Keep Hashing’s hosting service, for example, quotes placement per unit. Whatever the format, convert it to a cost per kWh so you can compare offers on the same basis.
4. Heat, in writing
Manufacturers publish an operating temperature range for every model. MicroBT lists -5 to 35 C for its air-cooled Whatsminer M60S. Bitmain lists an upper limit of 45 C for the S21 family. In a UAE summer, outside air goes past 35 C for months.
So ask the facility what intake temperature it holds in July and August, and what happens if it cannot hold it. A machine running outside its published range is a risk you are paying someone else to manage. The contract should say how they manage it.
5. Faults, access and repairs
When you host, you give up physical access to the machine. That is the trade. The contract should cover what you get back in return:
- How a fault is reported to you, and how quickly.
- Who diagnoses it, and whether you receive a written diagnosis and quote before any repair work starts.
- Whether you can collect the machine for repair elsewhere.
Warranty matters here. MicroBT’s published after-sales policy excludes unauthorised disassembly, among other things. The contract should say that no one opens a machine still under manufacturer warranty without your approval.
6. Leaving the arrangement
Every contract ends, so read the exit terms before you start. Look for:
- The notice period on either side.
- How and where the machine is returned, and who pays for it.
- A condition check at handover, ideally with a short running test.
- A final power reading, and how outstanding amounts are settled.
7. The legal and tax lines
On licensing, Dubai’s Virtual Assets Regulatory Authority (VARA) addresses mining in its rulebook as a disclosure duty on virtual-asset service providers. The rulebook does not make owning a miner a licensed activity. Mining as a business, though, needs a trade licence like any other business. A hosting facility carries its own premises and licensing; your own position depends on how you operate.
On VAT, the Federal Tax Authority’s public clarification VATP039 says mining for your own account is outside the scope of VAT, and that mining on behalf of another person is a taxable supply of services. How VAT applies to a hosting fee is a question for a tax adviser, not for this checklist.
A short checklist before you sign
- Each machine listed by model and serial, with you named as owner.
- Your pool account, your payout address, no changes without written instruction.
- A clear billing basis, a clear measurement method and a notice period for rate changes.
- A stated summer intake temperature, and a plan for when it is exceeded.
- Fault reporting, written diagnosis before repair, and no opening of in-warranty machines without approval.
- Exit terms you would be comfortable using.
A good provider will answer all of these without hesitation. If the answers are vague, the contract will be too.
Qasim Mir is Operations Manager at Keep Hashing in Dubai, where he oversees ASIC health tracking, repairs, site management and new miner installations.
