I don't know much about cloud mining, and I had heard that many cloud mining services are scams. But I had also heard that there are some legitimate cloud mining services, which rent out their hardwares for their customers to mine Bitcoin.
I have a question: Since mining is profitable, why do those companies rent out their hardwares for other people to mine Bitcoin and don't simply use the hardwares to mine Bitcoin for themselve?
i think its because they know that if they are mining by themselves then they can not make profit in a day and if they rent to other people in cloud mining services, they can make a profit from renting their hardware because they need to pay electricity fee. so they better to rent out their hardware than using for mining. beside that, if they have big hashrate, they can split the hashrate into some part then they can rent out for some people which it will give them more profit in the same time.