Arch launches TaxShield product to help Bitcoin holders reduce U.S. tax burden through mining investments

ChainCatcher news, cryptocurrency lending company Arch has launched the TaxShield product, aimed at helping high-income BTC holders reduce their tax burden by investing in mining hardware.

The product leverages the bonus depreciation provisions of the U.S. tax code IRS §168(k), allowing investors to deduct the cost of mining equipment from their taxable income. The specific operation is as follows: users obtain an over-collateralized loan from Arch using Bitcoin as collateral, and then purchase and host mining machines through Blockware. Investors can fully deduct the purchase costs in the first year while continuing to receive BTC mining rewards. Arch co-founders Himanshu Sahay and Dhruv Patel stated that clients with $1 million in taxable income could reduce their federal tax burden by approximately $400,000. The product was developed in collaboration with renowned Bitcoin educator Mark Moss and Blockware, primarily targeting high-net-worth digital asset holders.