Buy Bitcoin below spot. Write off 100% in year one.
Most people buy Bitcoin at market price and get a tax bill when they sell. Investors who mine get the same BTC exposure, plus a full year-one deduction and a discount to spot. This guide shows you exactly how it works.
- ✓ The tax mechanics behind the 100% deduction (IRC §168(k))
- ✓ Why hosted mining produces BTC below spot price
- ✓ How to model your own returns before you commit a dollar
Written by the Blockware team. Deploying and managing Bitcoin miners for clients since 2017.
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Everything you need to decide if mining belongs in your portfolio
No jargon, no hype. Just the numbers and the mechanics, written for investors, not engineers.
The tax mechanics
How 100% bonus depreciation applies to mining hardware, what "placed in service" means, the material participation and business-use requirements your CPA will ask about, and how the deduction offsets income in year one.
The economics of hosted mining
Why efficient hardware in low-cost U.S. facilities produces Bitcoin below the price you'd pay on an exchange, what drives your cost per coin, and how power rates and network difficulty affect the math.
Modeling your own returns
A plain-English walkthrough of the inputs that matter (hashrate, efficiency, power cost, BTC price) so you can stress-test the opportunity yourself, across bull and bear scenarios, before you talk to anyone.
You own the machines. We run the operation.
Nobody has to become a mining expert. Blockware sources your hardware, deploys it in institutional-grade facilities across Texas, North Dakota, Missouri, and Kentucky, and manages every part of the operation. The Bitcoin your miners produce is paid daily to a wallet you control.
- ✓ Hardware procurement at institutional pricing
- ✓ Deployment and configuration in U.S. facilities
- ✓ Power procurement at $0.070/kWh all-in
- ✓ Repairs and full warranty management
- ✓ 24/7 monitoring and uptime optimization
- ✓ Daily mining rewards paid to your wallet
Antminer S21 XP
The most efficient air-cooled miner on the market, built to stay profitable deep into bear markets.
Before you download
Is the 100% deduction real?
Yes. Mining hardware qualifies for 100% bonus depreciation under IRC §168(k), which was permanently restored for equipment placed in service after January 19, 2025. Eligibility depends on your circumstances, including material participation and business-use requirements, so the guide walks through what to ask your CPA.
Do I need to know anything about mining?
No. Blockware handles procurement, deployment, power, repairs, warranty claims, and 24/7 monitoring. You own the hardware and receive the Bitcoin. The guide is written for investors, not engineers.
Where does the Bitcoin go?
Mining rewards are paid daily to a wallet you control. Blockware never custodies your BTC.
What are the risks?
Mining involves hardware performance, network difficulty, and Bitcoin price risk. The guide includes a section on modeling returns across bull and bear scenarios so you can see how the numbers hold up before committing.
What happens after I download?
The guide arrives in your inbox instantly. If you want to go deeper, you can schedule a free, no-obligation call with a Blockware mining specialist to model your specific returns and tax savings.
Already convinced? Skip the reading and talk to us.
Book a free one-on-one call with a Blockware mining specialist. We'll walk through your goals, model your projected returns and tax savings, and answer every question. No pressure, no obligation.
- ✓ Personalized return and tax-savings model
- ✓ Hardware and hosting recommendations for your budget
- ✓ Clear next steps if it's a fit, no hard sell if it isn't
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Free, instant, and written to help you decide on your own terms.
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