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I've heard people mention this mining / tax thing in passing before. Is there a place you'd recommend to learn more about it?
Really its nothing too specific to "bitcoin" just google / ai search "bonus depreciation" and "One Big Beautiful Bill Act" - you will see they upped the rates to 100%
Various accelerated depreciation schemes have been present in real-estate for a long time.....this is why you often see big realestate projects that don't seem to make lots of sense on the surface (too much build out vs what they charge in rents, etc).
For the investor it becomes a question of: Do I want to pay Y in taxes or 75% of Y in taxes....that is the "returns" are not why they are building those structures. Its the reduction of tax....
One thing to remember about hashrate, it is artificially boosted by tax policy (ie. bonus depreciation). Investors are buying miners because they can depreciate 100% of the cost immediately, effectively reducing (or in some cases eliminating) their tax bill.
Imagine I said to you, you can either pay a $50K tax bill to the gov and get nothing in return, or you can spend $100k and have no tax but own 10 miners which may earn you $65k over next 3 years....from your perspective its a pretty easy choice: Spent 50K or spend 35k...
This is the crucial thing that most miss: Because of this new depreciation scheme, miners don't care about net profit of their mining equipment. They only care about the offset to their tax bill....meaning its not spending 100K and hoping to earn some percentage over that. Its spending a 100k and earning just enough back to offset their tax bill, so maybe only earning back 65% is still "profitable" from a net tax perspective.