Cheap power is not automatically profitable power. In Bitcoin mining, the advertised electricity number is only one part of the equation. A site can advertise a low PPA and still become unattractive once the operator pays rent, setup costs, deposits, O&M and downtime exposure.
What turns cheap power into expensive power?
The most common reason is amortized fixed cost. If a miner pays a large upfront infrastructure amount and commits to annual rent, those costs must be spread across every kWh the site actually consumes. Lower uptime makes the problem worse because the same fixed cost is divided over fewer productive kWh.
The correct comparison
Miners should compare sites using true all-in $/kWh. That means adding the PPA, CAPEX per kWh, rent per kWh, non-refundable deposits, commission, fixed O&M, and realistic uptime assumptions. Only then can a hosting route, lease route, or JV route be judged fairly.
Why this matters for deal selection
Two offers can look similar on the surface but behave very differently in a real model. One may have a higher headline tariff but no upfront drag. Another may show a low PPA but require heavy infrastructure payments. Without converting both into one all-in kWh number, the comparison is fake.
Operator takeaway
Do not buy the headline. Model the structure. If the true cost is still competitive after hidden charges and uptime assumptions, the opportunity may deserve deeper due diligence. If not, the cheap power was only marketing.

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