Monday Mining Metrics: Small Business Owner Turned Miner -- A Case Study
Bitcoin Mining Update - 11/17/2025
How Bitcoin Mining Saved a Small Business Owner From a $680,000 Tax Bill
Blockware Intelligence Newsletter
Today’s story is about a general contractor where I live in North Carolina — a hardworking small business owner who builds custom homes, manages a crew of eight, juggles subcontractors, deals with weather delays, and answers client calls at all hours.
He’s also a father of four.
2025 was the best year he’s ever had.
But when tax season rolled around, the IRS tried to take $680,000 of his earnings.
Here’s how we fixed it.
A Breakout Year — and a Brutal Tax Surprise
He finished 10 custom homes in 2025, averaging roughly $850,000 per house.
After paying for labor, subcontractors, materials, insurance, trucks, tools, fuel, and overhead…
He ended the year with approximately $1.7 million in net profit.
A massive achievement for a small business owner.
But his combined federal and North Carolina state taxes came out to roughly 40% of his income.
That meant he owed:
➡️ $680,000 in taxes
Six days a week, 12 hour days on job sites, managing employees, subcontractors, and interacting with clients 24/7…
And the federal and state governments want nearly three-quarters of a million dollars…
The Typical Strategy: Buy Equipment You Don’t Need
Like most general contractors, his first instinct was:
“Maybe I should buy equipment to reduce taxes.”
It’s a common move in the construction world — his accountant even encouraged it.
He considered several large purchases:
A new F-350
A skid steer
A telehandler
A dump trailer
A mini excavator
All of them are eligible for bonus depreciation.
But there was a major problem…
He didn’t actually need any of it.
Buying hundreds of thousands of dollars worth of machinery “for the write-off” would:
Increase storage costs
Raise insurance premiums
Sit idle most of the year
Produce no additional cash flow
Drain working capital
He needed a better solution — one that didn’t sabotage liquidity.
The Tool Most Business Owners Don’t Know About
That’s when I showed him something most small business owners have never heard of:
Bitcoin mining hardware qualifies for 100% bonus depreciation.
Instead of buying equipment that rusts in the yard…
He could buy Bitcoin miners that run inside a data center, 24/7, producing Bitcoin.
Mining hardware qualifies as 5-year MACRS property, making it eligible for first-year expensing under IRS §168(k).
The entire $1.7 million could be deducted immediately.
The Lightbulb Moment
He wasn’t searching for some speculative investment. He needed:
A large tax deduction
That also produced cash flow
Bitcoin mining is the only asset class that offers:
100% bonus depreciation
Daily Bitcoin production
Hands-off hosted operations
No equipment on your property
No maintenance headaches
Once he realized that, the decision became obvious.
The Results: Zero Taxes + One Bitcoin Per Month
He purchased $1.7 million worth of S21 XP Bitcoin miners, hosted with Blockware.
The impact:
2025 Tax Bill:
$680,000 → Nearly $0Hardware purchased:
268 S21 XPsProduction:
Roughly 1 BTC/month (~$100,000)Electricity costs:
About $50,000/month
He’s effectively stacking Bitcoin at half-price, with all expenses fully deductible.
His construction business now doubles as a passive Bitcoin mining and accumulation operation.
If You’re a Business Owner, This Matters
If you’re a business owner or high-income professional tired of paying far too much in taxes, hosted Bitcoin mining is for you.
Understanding how bonus depreciation works — and how Bitcoin mining fits into your tax strategy — is critical.
Sign up for a free consultation with a Blockware team member to learn more: https://mining.blockwaresolutions.com/tax
