One Year of Tax Savings & Bitcoin Stacking

If you started mining Bitcoin 1 year ago, how much BTC did you stack and how much did you save on taxes?

One Year of Bitcoin Mining: Did It Stack Up?

Twelve months ago, a Blockware client deployed ~$101,000 into ten Antminer S21 XP units at $7,830 per miner. 270 TH/s units hosted at $0.07/kWh. Here’s how the operation actually performed, coin by coin and dollar by dollar.

Bitcoin is down ~26% year-over-year. Surely this means Bitcoin mining hasn’t yielded the best results, right? Wrong.

In this newsletter, we’ll take a look at the 1-year returns of a ~$100k deployment into Bitcoin miners. Here’s the setup:

• 10 Antminer S21 XPs ($78,300)

• 12 Months of Electricity for the machines at $0.070/kWh ($22,779)

• $25 Setup Fee per Miner ($250)

• Total Investment: $101,329.79

The fleet never mined at a loss on an operating basis. With electricity at $0.07/kWh, every bitcoin produced cost roughly $49,100 in power; well below where Bitcoin has traded all year. That ~$27,000 spread between cost of production and spot price is the definition of a healthy margin, and it held through a period of meaningful network difficulty growth.

MONTHLY PRODUCTION

The table below breaks down the monthly revenue, both in terms of Bitcoin and in US Dollars. There are two noteworthy trends:

• The decrease in dollarized monthly revenue as the BTC price declined. In August, the monthly rewards peaked around $4,900 before dropping with the BTC price.

• The increase in BTC revenue from November until today. Mining difficulty has dropped due to large miners unplugging machines in favor of Ai servers. This has resulted in more BTC revenue for our clients.

While the volatility of BTC can be a deterrent, the most practical way to mine is as a Bitcoin accumulation strategy. Holding 100% of the mining rewards, benefiting from long-term BTC price appreciation. Practically, this can be achieved by pre-paying electricity up-front or paying out-of-pocket as you mine, rather than selling BTC mining rewards to cover the power bill.

THE TAX STORY

Bitcoin mining is one of the few asset acquisition strategies that comes with a first-year tax deduction on the full capital outlay. Under 100% bonus depreciation, the entire $78,300 hardware cost is deductible in year one. Prepaid power qualifies too. That changes the math significantly.

Mining doesn't just accumulate BTC. It converts operating capital into a tax-advantaged, self-custody Bitcoin position. The $25,171 tax benefit alone represents the equivalent of ~0.327 BTC at current prices. Combine that with the ~0.455 BTC acquired through mining, and approximately 60% of the cap. ex. has been returned in just 12 months.

• Net Mining Revenue: 0.455 BTC (~$35,035)

• Net 2025 Tax Savings: $25,171

• Returned Cap. Ex.: ~59.4%

If you’re interested in running this strategy for yourself, lowering your taxable income and increasing your BTC position, sign up for a free consultation with a member of the Blockware team. One of our mining experts will evaluate if this strategy makes sense for your goals and situation.

Sign up here: https://blockwaresolutions.com/info