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Arch Launches TaxShield to Help Bitcoin Holders Cut U.S. Taxes With Mining Purchases

The product leverages IRS bonus depreciation by using bitcoin-backed loans to finance hosted mining rigs.

Overview

  • Clients post BTC as collateral for an overcollateralized loan from Arch, then use the proceeds to purchase and host mining equipment through Blockware.
  • Arch says buyers may claim 100% first-year bonus depreciation under IRS §168(k) on qualifying rigs, turning the purchase price into a large upfront deduction.
  • The company targets high-income U.S. bitcoin holders and provides an illustrative case showing roughly $400,000 in potential federal tax savings on $1 million of taxable income, subject to individual eligibility.
  • Participants retain BTC price exposure and receive monthly mining payouts, which can be used to service the loan, with Arch emphasizing a compliance-first setup and institutional custody and reporting.
  • The offering was developed with Blockware and educator Mark Moss, and Arch says it is building toward a private bank–style wealth platform after prior financing, with trading planned in the next few months and possible card products under consideration.