Blockware Intelligence Newsletter
Today’s story is about a general contractor where I live in North Carolina — a hardworking small business owner who builds custom homes, manages a crew of eight, juggles subcontractors, deals with weather delays, and answers client calls at all hours.
He’s also a father of four.
2025 was the best year he’s ever had.
But when tax season rolled around, the IRS tried to take $680,000 of his earnings.
Here’s how we fixed it.
He finished 10 custom homes in 2025, averaging roughly $850,000 per house. After paying for labor, subcontractors, materials, insurance, trucks, tools, fuel, and overhead…
He ended the year with approximately $1.7 million in net profit.
A massive achievement for a small business owner.
But his combined federal and North Carolina state taxes came out to roughly 40% of his income.
That meant he owed:
Six days a week, 12 hour days on job sites, managing employees, subcontractors, and interacting with clients 24/7
And the federal and state governments want nearly three-quarters of a million dollars…
Like most general contractors, his first instinct was:
“Maybe I should buy equipment to reduce taxes.”
It’s a common move in the construction world — his accountant even encouraged it.
He considered several large purchases:
All of them are eligible for bonus depreciation.
But there was a major problem…
He didn’t actually need any of it.
Buying hundreds of thousands of dollars worth of machinery “for the write-off” would:
He needed a better solution — one that didn’t sabotage liquidity.
That’s when I showed him something most small business owners have never heard of:
Instead of buying equipment that rusts in the yard…
He could buy Bitcoin miners that run inside a data center, 24/7, producing Bitcoin.
Mining hardware qualifies as 5-year MACRS property, making it eligible for first-year expensing under IRS §168(k).
The entire $1.7 million could be deducted immediately.
He wasn’t searching for some speculative investment. He needed:
Bitcoin mining is the only asset class that offers:
Once he realized that, the decision became obvious.
He purchased $1.7 million worth of S21 XP Bitcoin miners, hosted with Blockware.
The impact:
He’s effectively stacking Bitcoin at half-price, with all expenses fully deductible.
His construction business now doubles as a passive Bitcoin mining and accumulation operation
If you’re a business owner or high-income professional tired of paying far too much in taxes, hosted Bitcoin mining is for you.
Understanding how bonus depreciation works — and how Bitcoin mining fits into your tax strategy — is critical.
Sign up for a free consultation with a Blockware team member to learn more: https://mining.blockwaresolutions.com/tax
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