Arch has launched TaxShield, a new service designed to help Bitcoin holders reduce their US tax liabilities through investments in Bitcoin mining. By leveraging IRS Section 168(k), the service allows investors to deduct the cost of mining equipment from their taxable income. Users can pledge Bitcoin as collateral to secure an overcollateralized loan from Arch, which is then used to purchase and host mining equipment through Blockware. This setup enables investors to deduct the full purchase cost in the first year, potentially saving significant tax amounts while earning Bitcoin mining rewards. The service, developed with Bitcoin educator Mark Moss and Blockware, targets high-income Bitcoin holders. Arch co-founders Himanshu Sahay and Dhruv Patel highlighted that a client with $1 million in taxable income could reduce their federal tax bill by about $400,000. Arch plans to expand its offerings with a trading service and a potential card product in the future.
Arch Introduces TaxShield to Cut US Taxes for Bitcoin Holders via Mining
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