Workbook · supplied fileGPU_Hour_Pricing_Model.xlsx
The debt/equity baseline comes from the Inputs, Solver, Cash Flow, Sensitivity, and Notes sheets. At the saved inputs, Solver!B22 is $4.8937757616/GPU-hour.
Inputs!B14:B21: 64 servers, 8 GPUs/server, 14 kW/server, 5% power overhead, 730 hours/month, 100% contracted utilization. Inputs!B24:B60: $37.5M servers plus 20% networking, 8% transaction tax, $300/kW-month, 30% customer prepay, 5% operator share, 30% equity, 13% debt rate, 3% origination, 25% residual, 32% target IRR.
The workbook is a reconstruction of Ryan’s discussion, not HydraHost’s original model. Its 25% residual was chosen by the workbook author; it is not a verified resale forecast.
Email · October 19, 2026, 7:56 AM PDTDan Gannon · Data Sales
Equipment basis$45,000,000
Advance plus tax$9,000,000 / 20%
Lease term30 months
Monthly payment plus tax$1,317,656.44
Purchase optionFMV, capped at 25%
Transcribed from the supplied email screenshot. Representative structure, dependent on the credit profile. The email gives no tax rate, advance-credit schedule, or buyout funding commitment. The model treats the advance as additional to all 30 payments and taxes lease payments and purchase at an editable 8% assumption.
Granola · October 16, 2026Meeting with Dan
The notes confirm 512 B300 GPUs in 64 servers and approximately $45M of equipment. Dan described asset-based underwriting and a 30-month lease. The notes recorded an estimated 3–4 days for approval after receipt of a complete credit package, with capital allocation still constrained.
The older notes describe a fixed buyout percentage. The later email is the controlling source here: fair market value, not to exceed 25%. The actual purchase price remains unknown.
Open meeting notes ↗
Plaud · October 19, 2026Ryan · HydraHost
Ryan described pricing toward investor return, with customer prepayments reducing borrowing and the owner retaining equipment value. He discussed a 5% revenue share, 13% interest, a 70/30 financing split, 3% origination, and a 32% IRR target.
His preliminary estimates were $4.80/GPU-hour with power included and approximately $5.10 with power extra. His original model was not supplied. These figures are context, not computed outputs of this site.
Source: “Hydrahost meeting with Ryan,” recording reviewed in this chat; approximately 8:25–16:40 and 24:45–31:55.
How the calculation works
Customer cash
Contract value = price × GPU count × monthly hours × billable utilization × contract months. Prepayment is a percentage of that value; later collections are reduced proportionally. The operator fee applies to cash receipts, including prepayment.
Debt ownership
Equipment, purchase tax, and one-time costs are funded with the selected equity share, net customer prepayment, and debt. Origination is paid by equity. Debt cannot be negative; surplus customer cash is reserved. Any outstanding principal is repaid at the investment horizon.
Lease and purchase
Advance and transaction tax are paid at month zero, followed by the entered monthly payments plus tax. The purchase option is exercised at lease end so service continues through the customer term. Use a lower buyout assumption when FMV is below the cap. The quote does not automatically scale when hardware cost changes.
Returns and cash reserves
Surplus upfront customer cash is retained to cover negative monthly cash flows, including buyout. Any remaining shortfall is additional investor equity, contributed only when needed; undrawn future commitments carry no modeled cost. Positive operating cash is distributed; remaining reserve and equipment sale proceeds are released at the horizon. Required price solves discounted investor cash flow to zero at the target annual return.
Returns exclude income taxes, depreciation tax shields, equipment sale taxes, resale transaction costs, deployment delay, payment default, and utilization ramp. Monthly periods use the entered hours, not actual calendar days. IRR is withheld for non-conventional cash flow patterns; target-rate NPV and all equity contributions remain visible. The 0% return price is a lifetime break-even calculation including residual value, not a guarantee of monthly cash sufficiency.
What still needs confirmation
Site costs
Power inclusion, actual server power draw, cooling charges, insurance, bandwidth, and any nonrecurring installation charge.
Lease mechanics
Whether advance rent offsets any monthly payments, transaction tax treatment, final credit approval, and actual FMV at purchase.
Customer contract
Reserved capacity and payment schedule, availability obligations, delivery dates, and whether customer prepayment arrives before supplier deposits.
