Bitcoin (BTC) Lending: Arch Eyes Helping Holders Slash U.S. Taxes With Mining Investments
Crypto lender Arch launched TaxShield, allowing Bitcoin holders to use BTC-backed loans to buy mining rigs for significant first-year tax write-offs.Summary
Crypto lending firm Arch has introduced TaxShield, a new offering designed to help wealthy Bitcoin holders reduce their U.S. tax liabilities by investing in Bitcoin mining hardware. The product leverages a provision in the U.S. tax code, bonus depreciation under IRS §168(k), enabling investors to write off the full purchase cost of mining equipment against taxable income in the first year. Clients post Bitcoin as collateral for an overcollateralized loan from Arch, use the proceeds to purchase and host mining rigs through Blockware, and continue to earn monthly mining rewards in BTC. Developed with educator Mark Moss and Blockware, the service targets high-income BTC holders, potentially allowing someone with $1 million in taxable income to save around $400,000 in federal taxes while maintaining BTC exposure. This initiative is part of Arch's broader strategy to evolve into a private bank-like wealth management platform for digital asset holders, offering services like lending, income generation, custody, and tax planning.
(Source：CoinDesk)