A relatively new mining process whereby hashing power is purchased on a mining rig that is housed and managed by others. This allows investors to purchase hashing power at a competitive price without having the costs of hardware, maintenance, energy, upgrades, all of which are built into the contract price. Cloud mining contracts are usually highly flexible, allowing the miner to choose the amount of hashing power and contract price that best suits them. The contracts typically carry the right to transfer to another miner.
Malone, J.A (2015). Glossary of Bitcoin Terms and Definitions. United States: Lulu Press, Inc