How Organizations Buy and Sell IPv4 Addresses
The internet runs on IP addresses. Every server, hosting provider, ISP, and cloud platform depends on them to communicate online. While IPv6 exists, most networks still operate on IPv4, and the available pool of addresses has already been exhausted. Because of this scarcity, IPv4 addresses have become a tradable digital asset.
Companies that no longer need their address space can sell it, while growing businesses must purchase it to expand infrastructure. This process is called the IPv4 transfer market, and it works similarly to a regulated asset exchange rather than a simple product purchase.
Why IPv4 Addresses Are Bought and Sold
In the early days of the internet, organizations received large IPv4 allocations for free from Regional Internet Registries (RIRs). Over time, many companies downsized, migrated infrastructure, or moved to cloud providers, leaving unused address blocks.
At the same time, modern platforms continue to grow:
• Hosting providers need IPs for customers
• SaaS platforms deploy more servers
• ISPs add subscribers
• Data centers expand infrastructure
Since new IPv4 addresses can no longer be issued, organizations must obtain them from companies that already own them. This created a structured marketplace.
The Basic IPv4 Transaction Process
An IPv4 transaction involves validation, legal transfer, and registry approval. It is not an instant purchase like buying a domain name.
Step 1: Identifying Need and Block Size
The buyer determines how many addresses are required. Common block sizes include:
• /24 (256 addresses)
• /22 (1,024 addresses)
• /20 (4,096 addresses)
• /16 (65,536 addresses)
Larger blocks typically offer lower price per IP.
Step 2: Finding a Seller
Sellers may be corporations, universities, telecom companies, or legacy organizations holding unused allocations. Buyers usually work with brokers because private negotiations are complex and regulated.
Step 3: Due Diligence and Verification
Before transfer, the address block is audited. This ensures:
• The seller legally owns the IPs
• The range is not blacklisted
• The addresses are not in active routing conflicts
• The block is transferable under registry policy
Step 4: Agreement and Contract
Both parties sign a transfer agreement defining pricing, payment structure, and responsibilities. This protects buyer and seller from disputes.
Step 5: RIR Approval
The Regional Internet Registry reviews the transfer request. Each region has its own registry:
• ARIN (North America)
• RIPE NCC (Europe)
• APNIC (Asia-Pacific)
• LACNIC (Latin America)
• AFRINIC (Africa)
The registry verifies justification and ownership before updating records.
Step 6: Completion and Routing
After approval, the buyer announces the IP range on the internet through BGP routing and begins operational use.
Pricing Factors in the IPv4 Market
IPv4 pricing fluctuates based on supply, demand, and block quality. Not all IP addresses have equal value.
Key factors affecting price:
Block Size
Larger allocations reduce administrative overhead and usually cost less per address.
Reputation History
Previously abused IPs may be partially blocked by email providers or networks.
Region Transferability
Some regions allow easier transfers than others, impacting liquidity.
Market Demand
Cloud growth and ISP expansion continuously push demand upward.
The Role of Brokers and Consultants
Because registry policies, legal ownership, and reputation checks are complicated, most organizations rely on specialized brokers. They manage verification, contracts, and approval workflows.
One example is ipv4hub.net, a brokerage and consulting platform that connects buyers and sellers of IPv4 address space. The service assists companies in leasing, purchasing, and validating address blocks while ensuring compliance with registry policies. It also helps sellers monetize unused allocations and provides tools like blacklist checking to verify address reputation. By coordinating documentation and registry communication, the platform simplifies what would otherwise be a complex technical transaction.
Leasing vs Buying
Not every company needs permanent ownership. Some businesses prefer leasing.
Buying
• One-time capital investment
• Permanent ownership
• Long-term infrastructure growth
Leasing
• Monthly operating expense
• Faster acquisition
• Flexible scaling
Startups and hosting resellers often lease, while ISPs and cloud providers typically buy.
Risks in IPv4 Transactions
IPv4 transfers require caution. Improper purchases can cause serious operational problems.
Common risks include:
• Blacklisted address ranges
• Unauthorized sellers
• Registry policy violations
• Routing conflicts
• Delayed approvals
Working with experienced professionals reduces these risks significantly.
The Future of the IPv4 Marketplace
Even with IPv6 adoption increasing, IPv4 demand remains strong because most global networks still rely on it. The market is expected to continue operating for many years as coexistence persists.
Organizations will keep trading IPv4 as a scarce infrastructure resource while gradually transitioning to IPv6 compatibility.