Asset Class
Bitcoin / Mining Infrastructure
Product Type
Tax-Efficient Financing
Interest Rate
Bespoke
Tax-Efficient Bitcoin Mining Financing
Use Bitcoin-backed financing to acquire hosted mining infrastructure while preserving BTC exposure.
This structure allows eligible borrowers to pledge BTC, draw USD or stablecoin liquidity, and use the proceeds to purchase qualifying Bitcoin mining equipment. The equipment may generate monthly mined BTC while potentially supporting first-year bonus depreciation, subject to tax eligibility, entity structure and placed-in-service timing.
This is not a standard Bitcoin-backed loan. It requires coordination across credit, collateral, mining operations, custody and tax execution.
We help borrowers compare financing terms, model collateral requirements and coordinate with experienced infrastructure partners so the structure is properly sized, documented and operationally executable.
Finance capex without selling Bitcoin
Structured around qualifying equipment
Monthly BTC production from hosted miners
Tax-efficient mining financing can convert a tax liability or liquidity need into ownership of productive Bitcoin infrastructure.
Borrowers may preserve their BTC position, acquire titled mining equipment and receive mined BTC directly to their wallet. Depending on the structure, mined BTC may help service interest costs while the borrower retains exposure to both the original BTC collateral and the mining operation.
The structure may be especially relevant for eligible U.S. taxpayers with significant taxable income, sufficient BTC collateral and a need for capital-efficient year-end planning.
This is a tax-sensitive structure and should not be evaluated on financing terms alone.
Eligibility depends on the borrower’s tax profile, entity structure, active or passive treatment, at-risk rules, equipment ownership, business purpose and whether the equipment is placed in service within the relevant tax year.
Borrowers remain exposed to BTC collateral volatility, margin requirements, mining economics, network difficulty, power costs, uptime, maintenance and potential tax-law changes. Independent tax and legal advice is required before execution.
A borrower has $1 million of taxable income and holds sufficient BTC collateral.
Rather than selling Bitcoin, the borrower pledges BTC and draws a loan sized to purchase approximately $1 million of hosted mining equipment.
If the equipment qualifies and is placed in service within the required period, the borrower may be able to claim first-year bonus depreciation against eligible taxable income, subject to tax advice and applicable law.
The borrower continues to hold BTC exposure, owns the mining equipment and receives mined BTC from the hosted operation. Actual tax savings, mining output, loan terms and collateral requirements vary by borrower, jurisdiction and market conditions.