Bitcoin Mining · Section 168(k) · Tax Strategy
Turn Your Biggest Tax Bill Into
Bitcoin.
Bitcoin mining equipment qualifies for 100% bonus depreciation under IRC §168(k). Blockware is a fully managed mining operation built for high-income earners who want to reduce their tax liability — and stack a hard asset doing it.
How it compares
Real estate depreciation
High minimums · Slow
Oil & gas deductions
Accredited only · Illiquid
Opportunity zones
Requires capital gains · Complex
Bitcoin mining via §168(k) ✓
Any scale ($5K–$10M+) · Live in 3 weeks
Free Consultation
Calculate your tax savings
A Blockware advisor will reach out within 1 business day with a custom analysis for your situation.
🔒 Your information is never sold or shared.
Not tax or investment advice — consult your CPA.
Not tax or investment advice — consult your CPA.
IRS-compliant §168(k)
CPA-backed documentation
No obligation
How it works
Your tax dollars,
redirected to Bitcoin
1
Purchase mining equipment through Blockware
Select a package that fits your investment size and tax goals. Entry starts at a single machine (~$5,000) and scales to $10M+. Your entire purchase qualifies for 100% first-year depreciation under IRC §168(k) — permanently restored by the One Big Beautiful Bill Act.
2
Claim 100% bonus depreciation on your tax return
Your CPA deducts the full equipment cost from your taxable income in Year 1. At the 37% bracket, a $150,000 investment yields approximately $55,500 in immediate tax savings. You're not avoiding taxes — you're redirecting them into an asset you own.
3
Blockware handles all operations
Turnkey, white-glove hosting in US data centers at $0.07/kWh — among the lowest in the industry. We manage procurement, installation, maintenance, and repairs. Your role is strategic oversight: less than 2 hours per week to satisfy the material participation requirement.
4
Earn Bitcoin. Compound. Repeat.
Your miners produce Bitcoin 24/7, paid directly to your wallet. The asset you used to cut your tax bill is now building real wealth. Borrow against it, redeploy capital, and run the strategy again next year.
Example — 37% tax bracket
$55,500
in Year 1 tax savings on a $150,000 investment. Your actual savings depend on your tax situation — a Blockware advisor will model it for you specifically.
Investment$150,000
Bonus depreciation deduction$150,000
Tax savings (37% bracket)$55,500
Effective net cost$94,500
Est. monthly BTC production~0.075 BTC
Miners live within~2–3 weeks
Hosting rate$0.07 / kWh
For illustrative purposes only. Consult your CPA for guidance specific to your situation.
Choose your package
One price. Everything included.
Hardware, hosting, and Year 1 power — bundled into a single investment. No monthly bills. No surprises.
Tier 1
$50k
All-in bundle · one payment
Est. Year 1 Tax Savings
~$18,500
At 37% bracket
Mining units7 machines
Est. monthly BTC~0.027 BTC
Total hashrate1,890 Th/s
Hardware — fully owned by you
3-year managed hosting
Year 1 power costs included
100% bonus depreciation eligible
Most Popular
Tier 2
$150k
All-in bundle · one payment
Est. Year 1 Tax Savings
~$55,500
At 37% bracket
Mining units20 machines
Est. monthly BTC~0.075 BTC
Total hashrate5,400 Th/s
Hardware — fully owned by you
3-year managed hosting
Year 1 power costs included
100% bonus depreciation eligible
Tier 3
$300k
All-in bundle · one payment
Est. Year 1 Tax Savings
~$111,000
At 37% bracket
Mining units43 machines
Est. monthly BTC~0.162 BTC
Total hashrate11,610 Th/s
Hardware — fully owned by you
3-year managed hosting
Year 1 power costs included
100% bonus depreciation eligible
Investing above $300,000? We build fully custom packages — get in touch.
Investing less than $50,000? We can accommodate any scale — entry starts at a single machine (~$5,000). Talk to an advisor.
BTC production estimates based on current network difficulty and subject to change. Not financial or tax advice — consult your CPA.
Why Blockware
Institutional infrastructure.
Personal ownership.
You own the hardware
Real assets on your balance sheet, eligible for 100% bonus depreciation. Not a fund, not a derivative — direct ownership your CPA can work with.
Fully managed, zero effort
We handle procurement, deployment, maintenance, and operations. You receive Bitcoin. No technical knowledge, no facility management, no surprises.
§168(k) — permanent law
100% bonus depreciation permanently restored by the One Big Beautiful Bill Act, signed July 4, 2025. Codified in IRC §168(k). Not a loophole — federal tax code.
CPA-backed compliance
We work with Open Path Finance, CPA specialists in Bitcoin mining tax compliance. Material participation documentation templates included.
Industry-leading $0.07/kWh
Blockware's institutional scale delivers power rates individual miners can't access. Lower costs mean more of your mining revenue stays as Bitcoin.
Live in ~3 weeks
From funding to Bitcoin hitting your wallet in approximately 2–3 weeks. Same-tax-year eligibility for purchases made before December 31.
What clients say
Built for serious wealth builders
The combination of the tax write-off and the ongoing Bitcoin production made this a no-brainer. My CPA was floored when I explained it. Blockware made the whole process completely painless.
I've tried other ways to implement the depreciation strategy and nothing was as clean as this. Own the asset, take the deduction, mine Bitcoin. It's elegant in its simplicity.
Within three weeks of sending funds, my miners were live and Bitcoin was hitting my wallet. The Blockware team handled everything. I just watched the stack grow.
Common questions
Everything you
need to know
Still have questions? A Blockware advisor will walk you through a custom analysis in one call.
Is this actually legal and IRS-compliant?
100% bonus depreciation is codified in the Internal Revenue Code under §168(k), permanently restored by the One Big Beautiful Bill Act signed July 4, 2025. Bitcoin mining ASICs qualify as MACRS 5-year property. Blockware partners with Open Path Finance, CPAs who specialize in Bitcoin mining tax compliance and provide full documentation.
Do I need to know anything about Bitcoin mining?
No. Blockware provides a complete mining-as-a-service package. We handle hardware, hosting, maintenance, and operations. Your role is strategic oversight — monitoring performance, managing your wallet, coordinating with advisors. That's what satisfies the IRS material participation requirement. Less than 2 hours per week.
Do I need an LLC?
An LLC is not required, but most clients choose to purchase through one to maximize the depreciation benefit and keep the mining operation clearly separated from personal finances. If you don't have one, your Blockware advisor can point you in the right direction — it's typically quick to set up.
What if Bitcoin's price drops?
The Year 1 tax deduction provides meaningful downside protection regardless of Bitcoin's price movement. Even in conservative modeling, investors exit with capital largely intact due to the immediate tax savings. Additionally, mining allows you to accumulate Bitcoin below market price, providing a built-in margin of safety.
How long until my miners are live?
From the time your funds are confirmed, miners are typically online and producing Bitcoin within 2 to 3 weeks. You'll receive dashboard access and hashrate confirmation when your operation goes live. For year-end tax eligibility, purchases should be completed before December 31.
Can I invest more than $300,000 — or less than $50,000?
Yes in both directions. For investments above $300,000 we build fully custom packages tailored to your goals — fill out the form and we'll put together a proposal. For investments below $50,000, including single-machine purchases starting around $5,000, we can still accommodate you — just get in touch and an advisor will find the right fit for your situation.
Your tax dollars are
leaving anyway.
Make them work for you.
leaving anyway.
Make them work for you.
A Blockware advisor will reach out within 1 business day with a custom tax savings analysis for your specific situation. No obligation.
Free Consultation
Talk to an advisor
We'll walk you through the numbers for your situation.
🔒 Your information is never sold or shared. Not tax advice — consult your CPA.