IPv4 addresses are scarce, valuable, and expensive. With prices ranging from $33 to $60 per address in 2025 and leasing costs averaging $0.30 to $2.50 per month per address, businesses must carefully decide between buying and leasing based on their needs and budgets.
Key Takeaways:
- Buying IPv4: High upfront costs ($35–$60 per IP) but offers full ownership, control, and potential value appreciation. Best for stable, long-term needs.
- Leasing IPv4: Low upfront costs but recurring monthly fees ($0.30–$2.50 per IP). Ideal for businesses with short-term or fluctuating needs.
- Break-even Point: Buying becomes more cost-effective after 3–4 years compared to leasing.
Quick Comparison:
| Criteria | Buying IPv4 Addresses | Leasing IPv4 Addresses |
|---|---|---|
| Upfront Cost | High ($35–$60 per IP) | Low (first month’s payment) |
| Recurring Costs | None | $0.30–$2.50 per IP monthly |
| Ownership | Yes | No |
| Asset Appreciation | Yes (10–20% annually) | No |
| Flexibility | Limited | High scalability |
| Break-even Point | ~3–4 years | Short-term cost-effective |
Conclusion: If your business has steady, long-term IP needs, buying IPv4 addresses is a better investment. For short-term scalability or limited budgets, leasing offers flexibility without large upfront costs.
Speaker Series 12 : The value of IPv4 addresses – IP Addresses | Internet | Web | IPv4
1. Buying IPv4 Addresses
Purchasing IPv4 addresses turns network infrastructure into a tangible asset, making it a strategic move for organizations with long-term, stable requirements. However, it requires careful planning to ensure the investment aligns with business needs.
Upfront Costs
The cost of buying IPv4 addresses depends heavily on the block size and current market trends. As of early 2025, prices range between $35 and $60 per IP address. Smaller blocks often come with higher per-address costs due to their strong demand.
The total expense varies significantly based on the block size. For instance, a /24 block with 256 addresses might cost between $9,000 and $15,000, while a /16 block containing 65,536 addresses could range from $2.3 million to $3.9 million. Larger blocks generally offer a lower per-address cost, making them a more economical choice for businesses with extensive IP needs.
| Block Size | Number of IPs | Example Cost Range |
|---|---|---|
| /24 | 256 | $9,000 – $15,000 |
| /16 | 65,536 | $2.3 million – $3.9 million |
Interestingly, current market conditions show small blocks priced at around $33 per address, the lowest in three years. This marks a drop from the $44–$50 range seen in 2023. However, prices are still much higher than the $15 per IP recorded back in 2014.
Recurring Costs
One of the key benefits of buying IPv4 addresses is the elimination of monthly leasing fees. That said, there are other expenses to consider, such as transfer fees, legal documentation, and minimal costs for managing and monitoring the allocation of the addresses. These elements highlight the dual role of IPv4 addresses as both an operational tool and a strategic investment.
Asset Ownership and Value
IPv4 addresses have become financial assets with notable appreciation potential. Between 2019 and 2022, their value rose from $20 to $60 per IP, showcasing their appeal beyond operational purposes.
Ownership opens up strategic opportunities. For example, IPv4 addresses can serve as collateral for loans or be monetized through subleasing unused portions. They’re also valuable for network expansion or as leverage in mergers and acquisitions. A prime example of this is Cogent, which securitized $206 million in notes backed by its IPv4 inventory.
Beyond their financial value, owning IPv4 addresses offers operational flexibility.
Flexibility and Scalability
Owning IPv4 addresses provides complete control over their use. Businesses can configure, assign, and reallocate addresses without the restrictions of leasing agreements. This control makes ownership particularly appealing for organizations with steady growth, as it allows for long-term network planning.
However, buying IPv4 addresses may not be ideal for companies expecting rapid scaling or dealing with unpredictable growth. The upfront costs can be a deterrent, especially when compared to the flexibility offered by leasing. Additionally, businesses must consider the timeline for IPv6 adoption to ensure their IP strategy aligns with broader industry trends.
For companies seeking expert guidance, brokers like V4 Capital Partner can assist with market analysis and acquisition strategies, helping businesses make the most of their IPv4 investments.
2. Leasing IPv4 Addresses
Leasing IPv4 addresses offers a flexible, pay-as-you-go alternative to purchasing, making it an appealing option for businesses that want to avoid large upfront costs. This model has become especially popular among companies with fluctuating network demands or tight capital budgets.
Upfront Costs
One of the biggest advantages of leasing is its low initial cost. Unlike purchasing, which often requires a significant one-time payment, leasing typically involves just the first month’s payment to get started. This can reduce first-year expenses by up to 85% and often includes tools and services for managing the leased addresses. For startups or short-term projects, leasing is an attractive option because it allows companies to conserve their capital while meeting their immediate network needs.
Recurring Costs
The cost of leasing IPv4 addresses depends on factors like block size, reputation, and geographic location. As of 2025, monthly rental prices range from $0.30 to $2.50 per IP address, with most falling between $0.44 and $0.47 per address each month. Larger blocks tend to have a lower cost per address. For example:
- A /24 block (256 addresses) costs around $110 to $120 per month, translating to $0.43–$0.47 per IP.
- A /22 block (1,024 addresses) runs between $450 and $500 per month, or $0.44–$0.49 per IP.
- A /20 block (4,096 addresses) is priced at $1,200 to $1,800 per month, bringing the cost down to $0.29–$0.44 per IP.
| Block Size | Number of IPs | Monthly Cost Range | Cost Per IP |
|---|---|---|---|
| /24 | 256 | $110 – $120 | $0.43 – $0.47 |
| /22 | 1,024 | $450 – $500 | $0.44 – $0.49 |
| /20 | 4,096 | $1,200 – $1,800 | $0.29 – $0.44 |
While leasing is cost-effective in the short term, it can become less economical after three to four years. The trade-off is clear: lower upfront costs but no ownership of the asset.
Asset Ownership and Value
Leasing provides access to IPv4 addresses but does not grant ownership. Unlike purchased IPs, which can appreciate in value, leased addresses remain the property of the lessor. This means businesses cannot use leased IPs as collateral, sublease unused portions, or benefit from any increase in their market value. Additionally, leasing carries risks like potential reputation issues tied to the IPs and uncertainty about renewal terms. On the other hand, leasing payments qualify as operational expenses, which could offer tax benefits and free up capital for other business growth opportunities.
Flexibility and Scalability
Leasing is ideal for businesses that need flexibility. It allows companies to easily scale their IP inventory up or down in response to changing needs. This dynamic approach eliminates the delays often associated with purchasing, such as registry transfers or ownership verifications. For businesses looking to expand quickly – like hosting providers entering new markets – leasing can be a faster and more efficient option.
Several real-world examples highlight the benefits of leasing. A Brazilian gaming company, for instance, cut its IPv4 requirements by 65%, improved network performance by 35%, and saved about $890,000 annually through better network optimization. Similarly, a Turkish e-commerce platform reduced its IPv4 needs by 45% and achieved annual savings of $1.2 million.
For businesses looking to optimize their IPv4 strategies, providers like V4 Capital Partner offer global support and flexible leasing solutions tailored to specific needs.
Leasing is a great fit for short-term projects, companies with limited capital, or businesses requiring fast scalability. However, it’s essential to weigh long-term goals and cash flow against both leasing and purchasing options to choose the most cost-effective strategy.
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Advantages and Disadvantages
When deciding between buying and leasing IPv4 addresses, it’s crucial to weigh the financial and operational implications. Each option comes with its own set of benefits and challenges that can significantly influence your company’s resources and flexibility.
Buying IPv4 addresses gives you complete ownership and control over these network assets. This allows for customized security measures and independent network management. Interestingly, IPv4 addresses tend to increase in value by 10%–20% annually, making them not just tools for operations but also investment assets. However, the current market price of $35–$60 per IP means purchasing requires a significant upfront investment. This can strain cash flow and create liquidity risks, especially if market conditions shift unexpectedly.
On the other hand, leasing IPv4 addresses focuses on flexibility and conserving capital. This option is particularly appealing for startups or businesses with changing needs. As Georgy Masterov from InterLIR explains:
IPv4 leasing isn’t just about cost savings – it’s about business agility and competitive advantage in today’s resource-constrained digital economy.
That said, leasing doesn’t allow you to build equity, and the lessor’s terms might limit your operational control.
A key consideration is the break-even point, which typically falls between 3 and 4 years. For instance, purchasing an IP address for $50 is a fixed cost with potential appreciation. In contrast, leasing the same address at $1 per month would cost $60 over five years – without any ownership benefits.
To clarify these differences, here’s a quick comparison:
| Criteria | Buying IPv4 Addresses | Leasing IPv4 Addresses |
|---|---|---|
| Upfront Cost | High ($35–$60 per IP) | Low (first month’s payment) |
| Recurring Expenses | None after purchase | $0.30–$2.50 per IP monthly |
| Ownership | Full ownership and control | No ownership rights |
| Asset Appreciation | Potential 10%–20% annual growth | No value accumulation |
| Flexibility | Limited by current holdings | High scalability options |
| Break-even Point | Approximately 3–4 years | More cost-effective under 3–4 years |
| Risk Profile | High upfront risk, liquidity concerns | Lower initial risk, dependency concerns |
Ultimately, the choice between buying and leasing depends on your company’s financial health, scalability requirements, and long-term goals. If your business has stable, long-term IP demands and sufficient capital, purchasing may offer better returns. On the flip side, leasing is a smarter option for those who value flexibility and want to minimize initial costs. For tailored advice, V4 Capital Partner provides specialized consulting to help align your IPv4 strategy with your broader business objectives.
Conclusion
Deciding between buying and leasing IPv4 addresses depends heavily on your company’s financial health, operational priorities, and future plans. With market prices currently ranging from $33 to $60 per IP address and leasing rates between $0.35 to $0.45 per month, aligning your strategy with both immediate needs and long-term goals is essential.
If your business has steady, long-term IP requirements and sufficient capital, purchasing IPv4 addresses might be the better route. Ownership eliminates ongoing costs, provides full control, and offers the potential for asset appreciation. Given current market conditions, purchasing remains a solid investment for those looking to build long-term value.
On the other hand, companies that prioritize flexibility and want to conserve cash flow may find leasing more appealing. With lower upfront costs, leasing allows businesses to allocate resources to other core operations while remaining adaptable. As Lee Howard from IPv4.Global explains:
"Both options, buying or leasing, have their benefits and challenges, and the decision should be based on a thorough evaluation of an organization’s specific requirements and the broader industry trends."
For organizations seeking a balance between stability and adaptability, a hybrid strategy can be a smart solution. Owning IPs for essential infrastructure while leasing additional addresses for fluctuating needs provides both cost efficiency and operational flexibility. This approach is particularly useful for businesses with seasonal traffic spikes or expansion plans.
Timing also plays a critical role. With IPv4 scarcity persisting and IPv6 adoption moving slowly, demand continues to drive prices upward. However, recent market fluctuations might offer opportunities for strategic buyers to make well-timed investments.
Navigating these decisions can be complex, and seeking professional advice is often invaluable. For U.S. businesses, expert consultants like V4 Capital Partner can help craft a tailored IPv4 strategy, ensuring your decisions align with your broader business objectives and maximize the value of your assets.
FAQs
What should businesses consider when choosing between buying or leasing IPv4 addresses?
When deciding between buying or leasing IPv4 addresses, businesses need to weigh several important factors:
- Cost: Purchasing IPv4 addresses involves a significant upfront expense, with prices typically ranging from $33 to $60 per address. Leasing, however, spreads out the cost, with monthly rates between $0.35 and $2.50 per address. For businesses with tighter budgets, leasing can be a more manageable option.
- Flexibility vs. Ownership: Buying means permanent ownership, making it a solid choice for companies with stable, long-term IP needs. On the other hand, leasing offers greater flexibility, allowing businesses to scale their IP resources up or down as their needs evolve. This can be especially helpful for organizations facing uncertain growth or fluctuating requirements.
- Operational Needs: Leasing is often faster and more adaptable, making it a practical solution for businesses transitioning to IPv6 or navigating periods of rapid growth. However, buying removes concerns about renewing leases or the potential unavailability of addresses in the future.
Ultimately, the right decision will depend on your company’s financial resources, growth strategy, and need for flexibility.
How does the increasing value of IPv4 addresses affect the decision to invest in them?
The increasing worth of IPv4 addresses has become a significant factor in investment strategies. With a finite supply and rising demand, these addresses have turned into sought-after digital assets that tend to grow in value over time. For businesses aiming for a stable and enduring investment, IPv4 addresses present an appealing opportunity.
By acquiring IPv4 addresses, companies can bolster their financial standing while ensuring seamless operations in an era where internet connectivity is indispensable. The ongoing scarcity of these addresses not only fuels their value but also provides opportunities for capital appreciation and strategic leverage within the digital marketplace.
What are the financial benefits of leasing IPv4 addresses for businesses with changing network needs?
Leasing IPv4 addresses offers businesses a smart way to manage costs, especially when network needs are unpredictable. Instead of spending a hefty amount upfront – typically between $35 and $60 per address – leasing provides a more budget-friendly option, with monthly rates usually falling between $0.30 and $2.50 per address. This allows companies to maintain better cash flow and channel their resources into growth-focused projects.
Another big advantage? Leasing makes it easy to scale up or down as needed, without being tied to the long-term commitment of owning addresses. It also eliminates concerns about asset depreciation, which is particularly relevant as the shift to IPv6 gains momentum. This flexibility ensures businesses can adapt quickly to changes in the digital landscape while staying efficient and forward-thinking.