Bitcoin trades at . We mine it at $52,468. Own the machine. Own the Bitcoin.
Tax Benefits
Erase your tax bill. Keep your Bitcoin. Earn mining income. Borrow against the Bitcoin you already own, buy miners titled in your name, and deduct 100% of the hardware in the same year.
You already own Bitcoin. Use it to wipe out your tax bill.
A loan, not a sale
This is a tax strategy built on IRS §168(k) bonus depreciation, one of the most powerful provisions in the U.S. tax code. Borrow against your Bitcoin without selling it, use the loan to purchase Bitcoin mining hardware, then immediately deduct 100% of the equipment cost against your taxable income in the same year.
Your Bitcoin stays. Your tax bill disappears.
Because the funding mechanism is a loan, you keep your Bitcoin exposure. You don't trigger a taxable event on your BTC. You don't give up any upside. You get a dollar-for-dollar deduction against your income and own physical mining hardware that generates new Bitcoin every month.
The mining hardware pays you back
Over a typical halving cycle, those machines can generate significant returns, often enough to service the loan itself. You enter with a tax problem and Bitcoin. You exit with the same Bitcoin, more Bitcoin from mining, and the tax bill gone.
Six steps from tax bill to more Bitcoin
Pledge your Bitcoin
Use your existing BTC holdings as collateral to secure a USD loan from Gasbox, up to the amount of your taxable income. No sale, no taxable event. Your Bitcoin stays yours.
Purchase mining hardware
Use the loan proceeds to buy institutional-grade Bitcoin miners (Bitmain S21e XP Hydro) titled in your name. Gasbox deploys them at our USA facility. You own the machines, we run them.
Claim 100% bonus depreciation
File IRS §168(k) and immediately deduct 100% of the hardware cost in the tax year the equipment is placed in service. A $500K purchase eliminates $500K of taxable income.
Collect weekly Bitcoin
Your miners generate Bitcoin 24/7. Gasbox sends mined BTC directly to your personal wallet every week, net of operating costs. No middleman holds your coins.
Repay the loan with mined BTC
Use monthly mining proceeds to service the loan. Over a typical 2-year mining cycle, machines can generate enough Bitcoin to repay a significant portion, or all, of the original loan.
Exit with more Bitcoin
Loan repaid. Miners paid off. Tax bill gone. You exit with the same Bitcoin you started with plus all the newly mined coins accumulated over the cycle.
Run your own numbers
Adjust your taxable income and tax rate to estimate potential savings. The mining figures use today's live hashprice and Bitcoin price.
Taxable income
$500,000
Taxes without the strategy
At 37% effective rate
$185,000
Equipment purchase (= taxable income)
Funded via BTC-backed loan
$500,000
Federal taxes saved (§168k)
Dollar-for-dollar deduction on the full purchase
$185,000
Hashrate acquired
At $20K/PH (institutional pricing)
25 PH
Power
13 J/TH at $0.07/kWh all-in hosting
$21.84/PH/day
Insurance and operations
Your machines are insured; deducted before payout
$2.19/PH/day
Est. annual mining income at today's hashprice
~18.2% on equipment cost at $39.00/PH/day, 95% uptime, 70/30 split
$90,840
Est. annual Bitcoin mined (net)
At $78,655 per BTC
~1.1549 BTC
Gasbox planning yield (conservative)
~8% net per year, the figure Gasbox plans on across the cycle
$40,000
Tax savings
$185,000
Federal taxes eliminated
BTC mined / year
1.1549
Net to you, after costs
Two ways to fund a $1M deduction
Same machines, same $1M write-off. What changes is how much cash you bring and what you owe afterwards.
$1M of taxable income, funded by your Bitcoin
A high-income earner pledges BTC, borrows the full purchase, and eliminates the federal tax bill without selling a single coin.
- 1
You have $1M in taxable income
You owe ~$370K in federal taxes at 37%
- 2
Pledge BTC as collateral, borrow $1M from Gasbox
Keep 100% of your BTC upside, it's a loan, not a sale
- 3
Use loan proceeds to purchase $1M of Bitcoin miners from Gasbox
You own the hardware. Gasbox manages it fully at a USA facility
- 4
File §168(k) 100% bonus depreciation on the $1M equipment purchase
Wipe out $1M of taxable income and save ~$370K in taxes
- 5
Miners generate Bitcoin weekly, sent directly to your wallet
Stack BTC passively. ~8% net planning yield, before today's hashprice upside
- 6
Use mined BTC to repay the loan over time
Loan paid. Miners yours. Tax bill gone.
Tax bill eliminated
~$370K
BTC kept (no sale)
100%
Hashrate acquired
~50 PH
Planning mining yield
~8%
Read this first
The three things your CPA will ask, either path
Offsetting wages needs active participation
Depreciation on a business you don't materially participate in is a passive loss under §469, which only offsets passive income. To wipe out W-2 or salary income you need to meet a material-participation test. Plan this with your CPA before you buy.
Financed dollars must be at risk
The financed portion of the purchase is deductible when you are personally liable for the loan (§465). A recourse loan qualifies; a non-recourse loan generally does not.
Selling the machines later has a cost
If you sell the miners, gain up to the depreciation you took comes back as ordinary income (recapture). Hold them and mine, and this never triggers.
Gasbox sells and operates mining hardware. It does not give tax advice. Structure any purchase with your own CPA.
IRS §168(k), applied to Bitcoin mining
What §168(k) bonus depreciation is
Section 168(k) of the Internal Revenue Code allows businesses to immediately deduct 100% of the cost of qualifying property, including ASIC Bitcoin mining hardware, in the year it's placed in service. This is not a loophole. It's a deliberate Congressional incentive to encourage capital investment in the U.S. economy.
Why mining hardware qualifies
ASIC miners are classified as 5-year MACRS property, making them fully eligible for §168(k) immediate expensing. The same provision is used by trucking companies, manufacturers, and data centers. Bitcoin mining operators have applied this code section broadly and successfully.
The BTC collateral loan is not taxable
Borrowing against your Bitcoin is a loan, not a sale. Loan proceeds are not taxable income under U.S. tax law. You can access the capital value of your BTC without triggering capital gains tax, use those proceeds to buy equipment, deduct the equipment 100%, and keep your BTC exposure throughout.
What you own, and where it runs
Miner model
Most efficient hydro-rated ASIC
Bitmain S21e XP Hydro
Hashrate per unit
430 TH
Power efficiency
Industry-leading
13 J/TH
Cost per PH
Wholesale institutional pricing
$25,000
Cooling
2 to 3x hardware lifespan vs. air-cooled
Direct liquid cooling
Facility location
Stranded wind and hydro power
USA
All-in power rate
Electricity and hosting combined
$0.07/kWh
Uptime guarantee
Contractual minimum
95%
Hardware insurance
$2.19/PH/day insurance and operations, deducted before payout
Included
Payout
Direct BTC, no custodian
Weekly, to your wallet
Hardware title
Required for §168(k) eligibility
In your name
Built for people with a real tax problem and real Bitcoin
High-income earners
Business owners, executives, consultants, doctors, and attorneys with $100K to $5M+ in annual taxable income looking to reduce their April tax bill significantly.
Bitcoin holders
Existing Bitcoin holders who want to leverage their BTC stack without selling it, accessing capital for tax deductions while keeping full price exposure.
Active investors
Traders, real estate investors with active income, fund managers, and K-1 recipients seeking large first-year deductions to offset significant taxable events.
Infrastructure partner
Gasbox
- Sources and titles miners in your name
- Deploys hardware at USA DLC facility
- Manages hosting, maintenance, and uptime
- Insures the hardware
- Sends mined BTC directly to your wallet weekly
- Provides BTC-backed lending facility
Tax strategy partner
Coinly
- Crypto-specialized CPA firm
- Structures §168(k) bonus depreciation filing
- Advises on business entity setup if needed
- Provides year-end tax documentation
- Works alongside your existing CPA or replaces them
Questions people actually ask
Fully compliant. Grounded in established tax law.
This strategy leverages IRS §168(k) 100% bonus depreciation, a provision enacted by Congress and applied across industries for decades. Bitcoin mining hardware qualifies as 5-year MACRS property. The BTC-collateralized loan is a standard financial instrument. Every element uses established code sections. This is not aggressive tax avoidance, it is smart tax planning.
Ready to eliminate your tax bill?
Schedule a consultation to see if this fits your situation.
Gasbox LLC · Tax Benefits strategy · USA mining facility
*Disclaimer: This page is for informational purposes only and does not constitute tax, legal, or investment advice. Outcomes depend on individual tax status, Bitcoin price, hashprice, and mining conditions. Consult a qualified CPA before implementing. **Assumes 37% federal tax rate. ***Live hashprice and Bitcoin price are fetched from the Bitcoin network on page load and change constantly; the ~8% planning yield is a conservative assumption, not a guarantee.