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Blockware Finance

Use Bitcoin Mining To Reduce Your Taxable Income And Stack BTC At The Same Time

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What Is Blockware Finance

Blockware Finance is a Bitcoin-backed borrowing strategy designed to help you access liquidity without selling BTC, deploy that liquidity into income-producing mining assets, and potentially reduce taxable income through accelerated depreciation when eligible.

Here’s the concept:

Borrow with BTC as collateral

Use borrowed funds to purchase Bitcoin miners

Place miners in Blockware’s managed hosting

Generate BTC and cash flow

Use some cash flow to service borrowing costs over time

Unlike “borrow against BTC to buy more BTC,” Blockware Finance is structured around cash flow. That matters because cash flow can help you carry the loan through volatility instead of relying on price appreciation alone.
Important note: Blockware does not provide tax, legal, or investment advice. Depreciation outcomes depend on your specific facts and your CPA’s guidance.

Why Choose Blockware Finance

Lower Taxable Income Potentia

Mining hardware may qualify for accelerated depreciation depending on eligibility and how assets are placed in service. This can potentially reduce taxable income while your operation produces BTC.

Cash Flow To Help Carry The Loan

Miners can generate ongoing revenue that may be used to offset interest costs. This reduces reliance on BTC price appreciation to “make the strategy work.”

Reduced Margin Call Pressure Vs. Buying More BTC

The primary risk of BTC-backed borrowing is a margin call. Using borrowed funds for miners introduces operating cash flow that can support loan servicing through drawdowns, rather than doubling down on spot volatility.

Turnkey Execution With Blockware

Blockware handles procurement coordination, hosting, operations, monitoring, and payout setup so you get mining exposure without building a full mining stack internally.

How Blockware Finance Works

Step 1

Secure A BTC-Backed Borrowing Facility
You post BTC as collateral through our financing partner. Terms such as LTV, margin requirements, interest rate, and custody structure are defined up front.

Step 2

Purchase And Deploy Miners
Borrowed funds are used to purchase miners that are deployed into Blockware’s hosting and operations environment. Blockware manages onboarding, routing, and monitoring.

Step 3

Operate, Earn, And Service Costs
You generate BTC production and cash flow. You can allocate cash flow toward operating costs and borrowing costs, while maintaining BTC collateral exposure. Over time, if BTC appreciates relative to the USD-denominated loan, the collateral position can strengthen (not guaranteed).
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Core Concepts

Collateralized Borrowing

A structure where BTC is pledged as collateral to access liquidity, with defined LTV thresholds and margin requirements.

Miner Deployment

Using borrowed capital to acquire productive mining assets that generate BTC and cash flow in Blockware’s managed environment.

Depreciation (When Eligible)

Mining equipment may qualify for accelerated depreciation depending on current law, entity structure, acquisition method, and placed-in-service timing. Your CPA determines treatment.

Buyer Experience Blockware Operations Experience
Keep BTC exposure without selling Managed deployment, uptime monitoring, and repair workflows
Deploy miners without managing procurement, hosting vendors, or maintenance Payout routing configuration and operational visibility
Receive mining production with a clean operating workflow and reporting Execution support so your advisors can evaluate the structure with real inputs

Collateral And Risk Management

Blockware Finance is designed to improve survivability through volatility, but it does not remove risk.
Primary risk: margin calls

If BTC declines materially, you may be required to post additional collateral or repay principal.

Why miners can help
Mining cash flow can provide a pathway to service borrowing costs over time, which may reduce the likelihood of forced BTC liquidation compared to borrowing-to-buy-spot structures.

Other risks to model

  • Network difficulty and hashprice variability
  • Power and hosting cost variability
  • Downtime and operational disruptions
  • Interest rate and term changes depending on partner structure
  • Regulatory or tax rule changes over time

Payments And Fees

Financing terms

Loan terms, margin thresholds, interest rate, and custody requirements are defined by the financing partner and confirmed before execution.

Miner costs and hosting

Hardware pricing, hosting rates, and service scope are disclosed during the build-out. Blockware manages deployment and operations.

Payout routing and reporting

Mining rewards and reporting are configured during onboarding. Blockware manages operational routing so production and settlement are tracked correctly.

Who Blockware Finance Is For

High-Income BTC
Holders

Operators and investors seeking tax-efficient structures (where eligible) without selling core BTC.

Funds And Family
Offices

Groups that want BTC collateralized liquidity paired with productive infrastructure and institutional-grade operations.

Miners And Treasury
Managers

Participants who want a structured way to add capacity and cash flow while keeping BTC exposure and managing downside dynamics.
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Built With ARCH

Blockware Finance is supported by our partnership with Arch, which provides the BTC-backed lending layer. Blockware provides the mining infrastructure layer: coordinating miner acquisition, deploying and hosting equipment, operating the fleet, and supporting reporting.
Learn About The Arch Partnership

Frequently Asked Questions

1. Is this guaranteed to “wipe my tax bill”?
No. Depreciation eligibility and tax outcomes depend on your facts and your CPA’s guidance. Blockware Finance is a structure that may reduce taxable income when eligible while generating BTC and cash flow.
That structure increases spot volatility exposure and does not create operating cash flow to service the loan. Blockware Finance uses borrowed funds for cash-flowing miners, which can reduce the pressure that drives forced liquidation.
Margin calls. If BTC declines, you may need to post additional collateral or repay principal. Blockware Finance aims to improve survivability by introducing cash flow, but risk remains.
Yes. Your BTC remains collateralized (structure-dependent) while miners produce additional BTC. Appreciation is not guaranteed and terms vary by partner.
It depends on hardware availability, hosting capacity, and onboarding steps. We provide an execution timeline during the Blockware Finance strategy call.
No. We provide the operational infrastructure and execution plan so you and your advisors can evaluate the structure.

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All content is for informational purposes only. Blockware Solutions, LLC, its affiliates (including but not limited to Blockware Intelligence, and their respective directors, members, shareholders, officers, managers, employees, and agents (collectively, “Blockware”) disclaim any liability or responsibility for the use of or reliance on any information contained in this communication. Blockware is not a law firm, accounting firm, tax advisor, or financial advisor. In addition, Blockware does not provide legal, tax, accounting, business, regulatory or financial advice and does not represent that outcomes described herein will result in any particular investment or tax consequence. Blockware recommends that prospective customers confer with their personal or independent financial and tax advisors about their particular circumstances prior to using or relying on any information contained herein.

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