Arch Launches TaxShield Program to Help Hodlers Reduce US Tax Liability Through Bitcoin Mining Investment

By: theblockbeats.news|2025/10/21 14:45:55
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BlockBeats News, October 21st, according to CoinDesk's report, crypto lending company Arch has launched the TaxShield program, utilizing a specific provision in the U.S. tax code — IRS §168(k) bonus depreciation, allowing investors to deduct the cost of mining equipment from taxable income.

The operation works as follows: users pledge Bitcoin as collateral, obtain overcollateralized loans from Arch, then use the loan to purchase and have Blockware host mining equipment. Investors can fully deduct the purchase cost in the first year, potentially offsetting hundreds of thousands of dollars in taxes, while continuing to receive monthly Bitcoin mining rewards.

Arch co-founders Himanshu Sahay and Dhruv Patel stated in an interview that this service was developed in partnership with renowned Bitcoin educator Mark Moss and Blockware, primarily targeting high-income Bitcoin holders. They explained that if a client's taxable income is $1 million, through this plan, their federal tax liability could be reduced by approximately $400,000, all while maintaining their Bitcoin holdings and receiving mining rewards.

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