How Bitcoin Mining Can Help Reduce Your Business Taxes
By: Colin Monroe
As business owners ourselves, we understand better than most. Building and maintaining a profitable business is hard as hell. And what do you have to look forward to each year after all the blood and sweat? Tax season- every entrepreneur's favorite time 🙄.
We get it. That's why we're excited to share with you how we're helping companies leverage the new frontier of Bitcoin Mining to help keep their tax liability in-check.
Our mission is to help you learn about the world of Bitcoin Mining, and how your business can leverage it to build a portfolio of tax-efficient, cash-flowing assets.
Let's get started!
A Bitcoin Miner- the digital equivalent of mining equipment for oil & gas.
1. What is Bitcoin Mining?
Bitcoin is a digital currency that currently boasts the largest market cap of any digital currency. It is trustless, permissionless, decentralized, and can be used by anyone in the globe with an internet connection. Bitcoin miners are specialized computers (pictured above) that are responsible for processing transactions on the Bitcoin network, and keeping the network safe from attack. As a reward for the work they do, the Bitcoin network rewards miners that participate with payouts in BTC.
In practice, Bitcoin miners are pieces of industrial equipment you can purchase and have ran on your behalf in a specialized data center (operating these data centers is what we do here at CryptoCaddy, FYI). Bitcoin miners require industrial grade power infrastructure, as well as state-of-the-art airflow systems to keep them running efficiently.
2. How can this help my business?
There's a lot of information about Bitcoin mining throughout the internet, but almost everyone misses a major benefit- they can be purchased as a depreciable asset by ANY business, worldwide! This is pretty huge, as it means your business can use excess profits to purchase Bitcoin miners and decrease your tax liability.
Not only can you use it to decrease your tax liability, but Bitcoin miners begin to generate cash-flow immediately after deployment. We'll contrast this with some other common asset classes next to show you why this is so important.
3. What about other assets?
Most experienced entrepreneurs reading this will probably be thinking that any asset class could be used in this same way- to offset taxes. While this is absolutely true, we think Bitcoin miners offer some overlooked benefits compared to traditional asset classes. From our perspective, there are 4 simple qualities a good asset must have:
Great assets are:
1. Tax Efficient
2. Passive (little to no time involvement)
3. Low Capex
4. Regular cash flow
Using these 4 keys, let's compare Bitcoin mining to more traditional asset classes.
Compared to Real Estate
Real estate is a very common asset class, and for good reason. However, when breaking down real estate as an asset class, you start to see some issues.
Real estate is definitely a tax efficient asset, and offers a lot of tax advantages over similar asset types. However, owning and operating real estate is a huge gamble if what you're looking for is an asset that consistently cash flows without any time investment. Further, it's quite difficult to be flexible when it comes to real estate investing, as you're typically having to put up large amounts of capex in order to purchase property- which is not always something that makes sense for your business.
Compared to Vehicles
Purchasing company vehicles is another common asset class, although not usually for investment purposes. Unsurprisingly, vehicles don't hold up great under this system.
While vehicles are absolutely purchased by companies all the time, they're typically not purchased with an expectation of a return on the investment. Let's move on to Equipment.
Compared to Equipment
Purchasing new equipment is a necessity for pretty much every business, and it's what is typically thought of when considering depreciation. In order for your business to grow and your capabilities to expand, you almost always need to be investing in new equipment. Let's see how it scores on our rubric.
As mentioned, all businesses will need to invest into new equipment at some point, and it's a much bigger deal for some industries (e.g. manufacturing) than others (e.g. consulting). However, investing excess profit into equipment you're not able to fully use (yet) isn't a very solid strategy over the long term. It's tough to scale, and it can leave you sitting on excess assets that aren't usable for long periods of time.
4. What about Bitcoin Miners?
As you probably guessed, the reason we're writing this is because Bitcoin Miners perform extremely well when analyzed as a potential asset for your business. This is what we think most business owners are missing. You have a low capex (starting around $5k) asset that consistently cash flows, and requires no time commitment from you! That's pretty incredible. Let's sum it all up here.
I'm Colin, and I've been where you are.
I understand the struggle of building your company's long-term value.
That's why we founded CryptoCaddy, so that we can bring the value and flexibility of Bitcoin Mining to everyone- not just the biggest firms. We not only offer the ability to build long term value for your business- but also the technology, state-of-the-art facilities, and service to make your investment safe, efficient, and completely passive.
Want to see how Bitcoin Mining can work for your business?
Benefits you can expect
Beginner Friendly 🤝
We pride ourselves on our collaborative sales process. We'll help you figure out if Bitcoin Mining is right for you, and make it quick and easy for you to get started.
Fast Onboarding 🏁
We can get you up and running quickly, or help you schedule deployments according to your cash flow. Whatever you need we're here to help!
Cost Effective 💰
Contrary to most other mining companies, we only charge you each month for the power your machines use. That means if your assets aren't online- you're not paying.
Hands Off 🌴
With our complimentary AutoPay, you can stay focused on the important details of your life and business. Let our team handle your machines.
High Performance 📈
Our state-of-the-art facilities provide an optimal environment for mining equipment, increasing the performance and longevity of your equipment.
Daily Payouts 💵
Get paid every day, either in BTC or USD. Not sure how BTC payments work? Not to worry! We have tons of resources for new miners to get started with.
Brad C.
"CryptoCaddy's team are very responsive and easy to work with. Uptime is the best we've experienced, and the smart billing is amazing. They also price their miners very competitively. CryptoCaddy is our go-to for future expansion."
John H.
"CryptoCaddy is on my shortlist of hosting sites. They have great uptime, great prices and I love that you only pay actual wattage. Easy to do business with."
Chris R.
"CryptoCaddy provides a first rate hosting service with very competitive pricing, super responsive customer service and near perfect uptime for my machines since I've been with them. They go above and beyond, provide flexible solutions and even helped me out of a difficult situation with another host. Highly recommended!"
How it works
Step 1: Book an appointment
Click here to schedule an appointment with our new client team so we can learn about your business and help you learn about our services.
Step 2: We build you a personalized proposal
After our call, our team will put together a personalized proposal for your business and present it to you.
Step 3: Go online
Once your proposal is tailored to your liking, we're ready to go online! In 5 short days your machine will be online at our facility and pushing out BTC to your wallet each day.
Here's What You'll Get...
High uptime
Smart Billing
State-of-the-art facilities
Overclocking options
Client portal
Quick and easy AutoPay
Used machine marketplace
Fast onboarding
Beginner-friendly guides
Best-in-class machines