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Bitcoin News Today: Bitcoin Holders Lower Tax Burden, Gain BTC with Arch's TaxShield

Bitcoin News Today: Bitcoin Holders Lower Tax Burden, Gain BTC with Arch's TaxShield

Bitget-RWA2025/10/24 21:02
By:Bitget-RWA

- Arch Lending launches TaxShield, a Bitcoin-backed loan program enabling investors to convert tax liabilities into mining assets via Blockware infrastructure. - The service leverages U.S. tax rules to allow 100% first-year depreciation on mining hardware, reducing taxable income while generating monthly BTC rewards. - High-net-worth investors could cut federal tax bills by ~$400,000 using $1M in income, with proceeds reinvestable or used to service loans. - Arch expands Bitcoin's utility through a DeFi pl

As more Bitcoin owners look for ways to make the most of their assets, Arch Lending, a crypto-backed lending company based in New York, has rolled out an innovative offering aimed at boosting both tax savings and compounding returns. Their latest solution,

, was developed in partnership with educator Mark Moss and mining infrastructure provider Blockware. This product enables high-earning investors to transform their tax obligations into Bitcoin mining assets that generate income. By utilizing U.S. tax code features such as , the offering meets a rising interest among both institutional and individual investors to get more value from their Bitcoin portfolios.

Bitcoin News Today: Bitcoin Holders Lower Tax Burden, Gain BTC with Arch's TaxShield image 0

Through TaxShield, qualified investors can use their Bitcoin as collateral to secure overcollateralized loans from Arch. The funds from these loans are then used to acquire mining equipment hosted by Blockware, which takes care of setup, maintenance, and electricity. Investors are able to claim full bonus depreciation on the mining hardware in the first year, significantly lowering their taxable income. At the same time, they continue to benefit from any increase in Bitcoin’s value and receive monthly payouts in mined BTC.

For instance, an investor reporting $1 million in taxable income could potentially cut their federal tax bill by as much as $400,000,

. This approach not only helps reduce taxes but also provides a steady stream of Bitcoin rewards, which can be used to pay down the loan or reinvested. “TaxShield transforms a typically dreaded expense into a driver for growth,” said Dhruv Patel, Arch’s CEO. Co-founder Himanshu Sahay noted that the product streamlines complex tax planning by combining Arch’s lending platform, Moss’s educational influence, and Blockware’s mining know-how.

While TaxShield is centered on tax advantages, Arch’s broader vision is to establish Bitcoin as a core component of a new financial system. The company recently revealed a platform that supports

and decentralized finance (DeFi) directly on Bitcoin’s main network. After 18 months of development, this platform introduces a virtual machine compatible with Bitcoin’s UTXO structure, enabling programmable smart contracts without the need for bridges or wrapped assets.

Crypto analyst Ted Pillows observed that more institutions are turning to Bitcoin for tokenized settlements due to its deep liquidity and impartiality. Arch’s strategy is to broaden Bitcoin’s use beyond simply storing value, making it possible to support lending, tokenization of real-world assets, and on-chain financial services. Early collaborators include HoneyB, which specializes in integrating real-world assets, and Autara, a Bitcoin-based money market supported by companies like Circle and Liquid Funds.

Arch’s projects reflect a wider trend in the industry toward tokenizing real-world assets, such as equities and property, on blockchain platforms. Although

and have led this movement, Arch is positioning Bitcoin as a strong contender by leveraging its established liquidity and trust among institutions. The company has secured $20 million in funding, with related ecosystem projects raising another $40 million, and has brought on board over 30 validators to facilitate institutional participation.

As Bitcoin’s function continues to expand, offerings like TaxShield and Arch’s tokenization platform underscore the increasing appetite for advanced financial solutions tailored to digital assets. By merging conventional financial strategies with blockchain innovation, Arch is enabling institutions and affluent individuals to better navigate the crypto landscape and discover new opportunities for returns and expansion.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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