Smart move by Mastodon to get into the hosting business:

This could be a fully operated server under the organisation’s own domain run by our team (with moderation included, on request); or, we can work with an organisation’s in-house operations team, via a support contract.

I’ve noticed whenever I catch Mastodon’s financial reports that individual donations have dropped. It’s hard to make donations work unless you have frequent NPR-style fundraising. Hosting will be mostly for larger institutions, not trying to compete with all the many smaller indie servers.