Host Location Economics Specification

HOST LOCATION ECONOMICS

MAXIMIZING RETURNS. MANAGING RISK.

Retail hosts are the foundation of the physical Cash-to-Crypto rail. This platform provides the intelligence, benchmarks, and risk frameworks needed to evaluate, negotiate, and manage Bitcoin ATM & kiosk hosting agreements.

Host Network Snapshot

Active Host Locations

~18,700

Down from ~27,000+
at peak (2024)

Source: Operator Reports

Hosting Models in Market

Fixed Rent, Revenue Share,
Hybrid Structures

Source: Company Filings

Average Host Uptime

95.2%

Based on operator uptime
disclosures

Source: Operator Reports

Host Churn Rate (Est.)

11.3%

Annualized, driven by operator
exits & non-performance

Source: Market Intelligence

Power & Connectivity
Requirement

120V / 5A

Hardwired or 4G/5G
failover recommended

Source: Hardware Specs

Cash Servicing Frequency

1 – 3 Days

Typical for active locations
varying by volume

Source: Operator Disclosures

Hosting Revenue Models

Fixed Rent

Operator pays a fixed monthly fee
regardless of transaction volume.

Predictable income
Lower upside potential

Typical Range: $300 – $1,500 / month

Revenue Share

Host earns a percentage of the operator’s
gross transaction margin.

Volume-based upside
Requires strong operator performance

Typical Range: 15% – 35% of Gross Margin

Hybrid Model

Combination of a base rent plus
performance-based revenue share.

Balances stability and upside
Most common in high-traffic sites

Typical Structure: Base + 10% – 25%

Host Revenue Calculator (Illustrative)

Avg. Transactions / Day

Avg. Transaction Size

$250

Operator Gross Margin %

12%

Hosting Model

Revenue Share

Revenue Share %

20%

Fixed Monthly Rent (if Hybrid)

$500

Monthly Expenses (Power, Internet, etc.)

$100

DISCLAIMER: This calculator is for illustrative purposes only. Actual results vary by operator, location, fee structure, transaction mix, and compliance costs.

Estimated Monthly Outcome

Estimated Monthly Transactions

540

Estimated Gross Margin

$1,620

Host Revenue Share (20%)

$324

Plus Base Rent

Less Expenses

-$100

Estimated Net Revenue

$224

Host Risk Management

Operator Failure Risk

Mitigate exposure to bankruptcies, exits, or abrupt terminations.

Contract Enforcement

Ensure clear terms, payment obligations, and termination rights.

Compliance Exposure

Hosts may face liability for AML / KYC violations or inactivity.

Cash Security

Implement secure storage and armored cash collection.

Equipment Abandonment

Plan for equipment retrieval or disposal if operator exits.

Top Host Location Categories

By Performance Potential (Illustrative)

Location Type	Foot Traffic Potential	Typical Model	Risk Level	Labor Requirements
Convenience Stores	★★★★★	Revenue Share / Hybrid	Low – Medium	Low
Gas Stations	★★★★★	Revenue Share / Hybrid	Low – Medium	Low
Grocery Stores	★★★★★	Revenue Share	Medium	Medium
Shopping Centers / Malls	★★★★★	Fixed Rent / Hybrid	Medium	Medium
Smoke / Vape / CBD Shops	★★★★★	Revenue Share	High	Low
Hospitality (Hotels, Casinos)	★★★★★	Fixed Rent / Hybrid	Medium	Medium
Big Box Retail	★★★★★	Fixed Rent	Medium	High
Independent Retail	★★★★★	Revenue Share	High	Low