Leasing vs. Selling IPv4 Addresses: What’s the Best Choice?
If you own IPv4 addresses, you have two main options to monetize them: leasing or selling. Here’s a quick breakdown to help you decide:
- Leasing: Provides steady monthly income (around $0.50 per address per month) while keeping ownership. Over time, leasing can generate more revenue than selling, especially if prices rise.
- Selling: Offers a one-time payment (currently $35–$60 per address) for immediate cash flow but forfeits future ownership and potential appreciation.
Quick Comparison:
| Factor | Leasing | Selling |
|---|---|---|
| Revenue | Monthly income (~$0.50/IP) | One-time payout ($35–$60/IP) |
| Ownership | Retained | Transferred |
| Long-Term Value | Potential appreciation | Permanently lost |
| Flexibility | High | None |
| Effort | Requires management | Minimal after sale |
| Risk | Insulated from price drops | Exposed to market timing |
Key Takeaways:
- Leasing is ideal for long-term income and retaining asset control.
- Selling is better for quick cash or if you don’t plan to use the addresses in the future.
- Market trends, financial goals, and administrative capacity should guide your decision.
Read on to explore the pros, cons, and strategies for maximizing the value of your IPv4 assets.
IPv4 Address Leasing: Benefits and Drawbacks
Steady Income and Ownership Control
Leasing IPv4 addresses can provide a consistent income stream without giving up ownership. Instead of a single payout from selling, leasing offers monthly payments that can last for years. Current lease rates typically range between $0.35 and $0.45 per address per month, depending on the number of addresses and the lease term.
To put it into perspective, leasing a /24 subnet (256 addresses) can generate around $128 annually, compared to a one-time sale price of $12,800. This recurring income model not only supports better cash flow management but also keeps the asset in your hands, making leasing an attractive option for temporary use cases while being about ten times more cost-efficient for short-term needs.
"Leasing offers a sustained income stream, and our clients typically experience a significant increase in revenue, depending on factors such as subnet size and the Regional Internet Registries (RIRs) from which the addresses are assigned, compared to selling their IPs outright."
- Vincentas Grinius, CEO of IPXO
Another advantage of retaining ownership is the flexibility it provides. In a fluctuating market, address holders can renegotiate terms, switch lessees, or reclaim addresses when necessary, ensuring they remain in control of their assets.
Market Flexibility and Future Options
Leasing IPv4 addresses also offers strategic advantages. It allows address holders to benefit from current market demand while keeping the door open to profit from future price increases. Over the past few years, IPv4 address values have ranged between $30 and $50, making ownership a smart long-term play in a dynamic market.
This flexibility is particularly beneficial for organizations making the shift to IPv6 or dealing with varying network requirements. Instead of committing to permanent IP purchases, businesses can lease only what they need for specific periods and adjust rates based on market trends.
Another perk of leasing is the ability to reclaim addresses when lease terms expire. Owners can renew agreements with the same lessees, find new clients at potentially higher rates, or use the addresses for their own purposes. With about 20% of global IPv4 resources still unused in 2023, this adaptability can be a valuable asset. However, it does come with its own set of challenges, particularly in terms of ongoing management.
Management Requirements and Market Factors
While leasing can be financially rewarding, it demands active oversight and careful management. Address reputation is critical – misuse by lessees, such as for spam or other prohibited activities, can lead to blacklisting, reducing the future value of the addresses. To prevent this, many lease agreements explicitly ban certain activities, like email services or illegal uses.
Thorough background checks on potential lessees and robust monitoring systems are key to successful leasing. Partnering with experienced IPv4 brokers can help with screening clients and managing leases effectively.
Regional compliance adds another layer of complexity. Policies and transfer requirements vary across different Regional Internet Registries (RIRs). For instance, in 2022, RIPE NCC resources averaged $0.51 per IP per month, while LACNIC resources were higher, averaging $0.69 per IP per month. These regional differences affect pricing and operational strategies.
Finally, market volatility can impact lease pricing and demand. Balancing current income with the potential for future asset appreciation requires careful planning. Additionally, relying on third-party platforms for IP address management can pose risks if those platforms lack reliable support or fail to maintain accurate records. Using centralized IP address management (IPAM) tools and conducting regular audits can help address these challenges, ensuring smooth operations and proper tracking throughout the leasing process.
IPv4 Address Selling: Benefits and Drawbacks
Immediate Cash Flow and Capital Access
Selling IPv4 addresses offers a straightforward way to generate immediate cash, which can significantly strengthen a company’s financial position. Unlike leasing, which provides a steady income over time, selling delivers a one-time payment that can be used for key financial goals like reducing debt, upgrading equipment, or funding expansion projects.
As of early 2025, IPv4 prices range between $35 and $60 per IP address. For example, selling a /24 subnet (256 addresses) could bring in anywhere from $8,960 to $15,360. Smaller blocks tend to sell for around $30 per address, while larger blocks generally fetch over $40. Major corporations are already capitalizing on this trend. Cogent Communications Holdings, Inc., for instance, issued IPv4 address revenue term notes worth approximately $206 million. Selling allows companies to immediately access the full current market value of their IPv4 holdings, which can be particularly appealing compared to the slower revenue stream that leasing provides.
However, while the immediate financial benefits are clear, selling comes with long-term trade-offs, as discussed below.
Ownership Transfer and Future Value Loss
One significant downside to selling IPv4 addresses is the permanent loss of ownership, along with any future appreciation in value. By selling, companies are essentially wagering that the current market price is the highest they’ll see for these assets. History, however, suggests otherwise. IPv4 addresses sold for $7.50 to $10 back in 2015 now command prices of $40 to $60.
Amazon’s actions underscore how valuable IPv4 addresses can be over time. Between 2011 and 2022, the company acquired 126 million IP addresses through transfers, including notable purchases such as 8 million from MIT, 16 million from General Electric, and 4 million from AMPRNet between 2017 and 2019. During this period, IPv4 prices surged by nearly 250% between 2020 and 2021. These examples highlight the opportunity cost of selling assets that might continue to grow in value.
"One would think that companies sitting on unused IP resources would either monetize or sell them, but that hasn’t been the case. In fact, there are still over 800 million unused IPs, mostly held by companies that obtained resources when IPv4 scarcity wasn’t an issue. New companies, on the other hand, are suffering from the IPv4 shortage."
– Paulius Judickas, VP of Strategic Sales, IPXO
Beyond the loss of potential appreciation, other factors – like market conditions – add complexity to the decision to sell.
Market Conditions and Sale Timing
Timing is everything when it comes to selling IPv4 addresses. To maximize returns, companies need to pay close attention to market dynamics. For example, IPv4 prices stabilized in December 2024, with monthly averages for /17 to /24 blocks ranging between $32 and $36 per address. This stability followed a period of significant price swings, during which small block prices dropped by 40%, and larger blocks settled at around $32 to $34 per address in late 2024.
Market activity often peaks early in the year, driven by business budgeting cycles. Broader economic trends and growth in the tech sector also influence demand for IPv4 resources. Geographic factors play a role too – addresses in the ARIN region, for instance, often command higher prices due to limited availability and strong demand. Additionally, the reputation of an IPv4 block can impact its price; blocks with a clean history usually fetch premium rates.
"Buyers with flexible timelines may find opportunities to secure blocks at favorable rates, while sellers are advised to carefully consider market timing to avoid further price erosion."
– IPv4.Global
Although prices have recently stabilized, some experts remain optimistic about the long-term potential of IPv4 investments. Investors are reportedly expecting annual returns of up to 20%. For companies considering a sale, the key question is whether current prices represent a peak or just a temporary plateau before further growth.
Direct Comparison: Leasing vs. Selling IPv4 Addresses
Decision Factors for IPv4 Asset Management
When deciding between leasing and selling IPv4 addresses, the choice often boils down to financial goals and operational priorities. If immediate cash flow is the priority, selling might be the better option. On the other hand, leasing suits organizations aiming for a steady, recurring income stream.
For companies that foresee a future need for their IPv4 assets, leasing allows them to retain ownership while still generating revenue. Conversely, organizations with no plans to use these addresses in the future may find selling more practical.
Market dynamics also play a critical role. Selling requires careful timing to maximize returns, particularly as prices have recently stabilized around $32–$36 per address. Leasing, however, offers more consistent returns, with rates hovering around $0.50 per address per month.
Administrative capacity is another important factor. Selling involves minimal effort post-transaction, while leasing demands ongoing management, including handling lease agreements and monitoring market trends. For companies with limited resources, the simplicity of selling can be appealing.
The breakeven timeline is a key consideration for long-term value. Data shows that leasing typically surpasses the financial benefit of a one-time sale after about six years. For instance, leasing a /24 block at $0.50 per address per month generates enough revenue in six years to exceed the proceeds from selling it outright.
The table below highlights the key differences between leasing and selling IPv4 addresses.
Comparison Table: Leasing vs. Selling
| Factor | Leasing | Selling |
|---|---|---|
| Revenue Model | Recurring monthly income (~$0.50/IP) | One-time payment ($32–$35/IP) |
| Asset Control | Full ownership retained | Complete ownership transfer |
| Long-Term Value | Retained with potential appreciation | Permanently forfeited |
| Flexibility | High – option to sell later remains | None – irreversible decision |
| Administrative Effort | Moderate ongoing management | Minimal after transaction |
| Market Risk | Insulated from price volatility | Exposed to market timing risks |
| Cash Flow | Steady monthly payments | Immediate lump sum |
| Future Options | Can retain for future use | No future accessibility |
Financial and Market Considerations
To put this into perspective, let’s consider a /20 block (4,096 addresses). At current prices of $35 per IP, selling would yield a lump sum of $143,360. Alternatively, leasing that same block at $0.50 per IP per month generates around $2,048 monthly. This means lessors could recoup their theoretical sale price in about 70 months while still retaining ownership.
Market stability also influences the decision. Large block purchases have seen a value drop of roughly 30% in 2024, while lease rates have remained steady. This stability makes leasing particularly appealing for organizations that prioritize risk mitigation.
Finally, notable examples illustrate these strategies in action. Institutions like MIT and USC have opted to sell their IPv4 allocations. For instance, MIT transferred part of its address space to Amazon Web Services in 2017, and USC sold its 128.125.0.0/16 block to Amazon. These cases highlight how organizational goals and market conditions shape the decision to lease or sell.
Professional Services and Asset Optimization
Long-Term Value Through Asset Management
To maintain and enhance the value of IPv4 assets over time, strategic management and professional support play a vital role. Effective asset management isn’t just about deciding whether to lease or sell – it requires ongoing efforts like monitoring market trends, allocating resources wisely, and adjusting strategies to align with evolving business needs.
IPv4 addresses, when treated as digital assets, can yield consistent long-term returns. This approach often involves a mix of leasing and selling, depending on market conditions and organizational goals.
Organizations should adopt hybrid IP strategies, combining long-term leasing commitments with flexible short-term capacity.
By employing hybrid strategies – such as blending leasing arrangements with selective sales – companies can maximize returns. This requires disciplined monitoring and a flexible approach to asset allocation, enabling businesses to generate immediate income while preserving opportunities for future growth.
Keeping a proactive eye on asset value is essential. This includes monitoring IP reputation, adhering to regional Internet registry policies, and implementing robust security measures to prevent misuse. Failing to address these areas can lead to issues like blacklisting or regulatory penalties, which can diminish the value of IPv4 assets.
Deploy proactive monitoring and global mitigation measures to safeguard IP reputation.
Advancements in AI and machine learning have further enhanced IPv4 asset management. These technologies enable predictive analytics for market trends and early detection of security threats, empowering businesses to make smarter decisions and achieve higher returns.
These strategies form a solid foundation for engaging professional services that can help businesses unlock even greater value from their IPv4 assets.
Professional Brokerage and Market Support
Professional services take asset management to the next level by opening up additional market opportunities. IPv4 brokers bring specialized expertise, regulatory insights, and extensive networks to the table, helping organizations maximize their asset value.
Brokers act as intermediaries, facilitating smooth transactions while providing critical services like market analysis, buyer-seller matching, negotiation support, legal compliance, and post-transfer assistance.
The financial benefits of professional brokerage can be substantial. For instance, a Canadian cybersecurity company secured /24 blocks at a cost of about $2,400 per month – 92% less than traditional procurement methods. This approach not only saved money but also preserved operational flexibility.
Market timing is another area where brokers add value. In 2022, lease prices for IPv4 addresses varied significantly by region, with RIPE NCC resources averaging $0.51 per IP per month, compared to $0.69 for LACNIC resources. Understanding these regional trends enables businesses to make more informed decisions.
V4 Capital Partner is a prime example of a service provider that specializes in optimizing IPv4 assets. Their offerings include brokerage, investment, and consulting services, all aimed at helping businesses make the most of their IPv4 resources. By combining market insights, regulatory expertise, and tailored strategies, they align their services with each client’s unique objectives.
Professional services also help mitigate risks through their legal and technical expertise. For example, a Czech telecommunications company acquired a crucial /22 block within 72 hours at a fraction of the usual cost, avoiding delays in its 5G rollout. This kind of rapid response can prevent costly interruptions to business operations.
Reputation management is another key benefit. A Brazilian marketing technology firm improved its email delivery rates by 23% by leasing IP blocks with clean delivery histories through professional platforms, directly boosting campaign performance and revenue.
"If you’re looking for a hands-off fully managed platform to help monetize IPs that you’re not using, this is probably the best one out there. Actually, it is the best one out there."
- Jake Brander, Founder at Brander Group
When choosing a professional service provider, businesses should evaluate factors such as experience, reputation, accreditation, transparency, and customer support. A reliable partner will offer a comprehensive suite of services, including market analysis, compliance documentation, technical support, and ongoing optimization of the IPv4 portfolio.
As compliance requirements grow more stringent, professional services are increasingly valuable for ensuring adherence to Know Your Customer (KYC) standards, regional Internet registry policies, and international transfer regulations. This helps businesses avoid compliance violations and maintain the legitimacy of their assets.
In most cases, the return on investment for professional services becomes evident within 3–4 years. By leveraging external expertise, organizations can access specialized knowledge without the burden of building in-house capabilities, making professional services a cost-efficient way to optimize IPv4 assets.
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Conclusion: Selecting the Best Approach for Long-Term Value
Deciding between leasing and selling IPv4 addresses depends heavily on your organization’s goals, financial needs, and future plans. If your priority is generating steady, recurring income, leasing might be the better option. In fact, leasing has demonstrated a 43% increase in annual revenue, compared to selling, which provides a 25% one-time revenue boost.
Financial flexibility is another critical factor. With IPv4 purchase prices currently ranging from $45 to $55 per address and lease rates between $0.50 and $0.80 per month, leasing stands out as a cost-effective solution. This can be especially appealing for businesses with tight budgets or those needing adaptable operational strategies.
Market trends also support holding onto IPv4 assets. Jake Brander, Founder at Brander Group, highlights this dynamic:
"the number of IP sellers is declining while demand continues to rise".
This underscores the potential long-term value of retaining ownership, as demand for IPv4 addresses continues to grow.
For many organizations, a hybrid approach offers the best balance. By maintaining ownership of core IPv4 addresses while leasing additional ones for expansion or specific projects, businesses can enjoy immediate revenue while keeping options open for future opportunities.
Additionally, navigating the complex IPv4 market often requires professional expertise. Experienced brokers bring valuable market insights, regulatory knowledge, and established networks that can significantly enhance your returns. Services like V4 Capital Partner specialize in helping businesses maximize the value of their IPv4 assets through brokerage, consulting, and investment strategies.
To make the right choice, take a close look at your network needs, budget, and long-term objectives. Assess your current IP usage, craft a strategy that aligns with your growth plans, and collaborate with trusted partners who understand both the technical and market aspects of IPv4 assets.
Although the IPv4 market is evolving, over 95% of internet traffic still relies on IPv4 infrastructure. Whether you opt for leasing to maintain flexibility or selling for immediate capital, the key is to make an informed decision that aligns with your unique circumstances and ensures long-term value.
FAQs
What risks should I be aware of when leasing IPv4 addresses, and how can I reduce them?
Leasing IPv4 addresses comes with its share of risks, including IP hijacking, blacklisting, and misuse by lessees. For instance, IP hijacking happens when someone manipulates routing tables to redirect traffic without authorization. Blacklisting, on the other hand, can occur if lessees use the addresses for activities like spamming, rendering them temporarily unusable.
To reduce these risks, it’s crucial to partner with a reliable broker who can ensure secure transactions and thoroughly vet lessees. Using Resource Public Key Infrastructure (RPKI) adds an extra layer of protection against hijacking, while regular network monitoring can help detect misuse early. Additionally, having clear lease agreements with detailed acceptable use policies is key to safeguarding your assets.
How do market trends and regional differences affect whether businesses should lease or sell IPv4 addresses?
Market Trends and Regional Differences in IPv4 Transactions
When it comes to deciding whether to lease or sell IPv4 addresses, market trends and regional disparities play a major role. The growing demand for IPv4 addresses, fueled by their limited availability, has led to significant price variations across different regions. For instance, in the United States, individual IPv4 addresses typically cost $25 to $35. But in the Asia-Pacific region, where demand is higher and supply is tighter, prices often climb to $40 to $50 per address. This disparity means businesses in wealthier regions generally find it easier to secure these resources, while companies in developing areas may face steeper costs, exacerbating the digital divide.
Leasing IPv4 addresses appeals to businesses that prioritize flexibility or lack the funds for an outright purchase. This option is especially beneficial for companies in rapidly expanding markets, allowing them to scale operations without hefty upfront investments. On the flip side, selling IPv4 addresses can provide an immediate financial boost, though it comes at the cost of losing a long-term asset. Weighing these factors carefully is key to determining the right approach for your business.
How do professional services and brokers help maximize the value of IPv4 assets?
The Role of Professional Services and Brokers in IPv4 Asset Management
Professional services and brokers are essential allies for businesses looking to make the most of their IPv4 assets. With their in-depth market expertise, they help companies evaluate their IPv4 inventory, pinpoint underused resources, and devise strategies to make better use of these assets.
Whether your goal is to lease or sell, brokers offer crucial advice to ensure your decisions support your long-term objectives. They handle the complexities of the process, negotiate favorable deals, and position businesses to benefit from the rising demand for IPv4 addresses. By doing so, they help organizations secure the best possible value while reducing risks in a fast-paced and competitive market.