Arch Lending Introduces TaxShield for Bitcoin Holders

Arch Lending has launched TaxShield, co-developed with Mark Moss and Blockware, to help Bitcoin holders reduce U.S. federal tax liabilities through Bitcoin mining hardware investments.

TaxShield aims to transform tax liabilities into income-generating investments, potentially influencing Bitcoin market dynamics and appealing to high-income digital asset holders.

Arch Lending has launched TaxShield, a product enabling U.S. Bitcoin holders to use mining hardware investments to reduce taxes . Developed with Mark Moss and Blockware, it leverages IRS §168(k) for bonus depreciation benefits.

Arch Lending, led by CEO Dhruv Patel and Co-Founder Himanshu Sahay, collaborates with Mark Moss and Blockware. TaxShield facilitates compliant and simple tax-efficient strategies that involve Bitcoin mining hardware investments.

Impact on BTC Investors

TaxShield is expected to affect BTC investors facing high tax liabilities by providing an investment pathway. This move may increase the demand for Bitcoin mining assets due to associated tax benefits.

This approach may transform tax liabilities into income-generating investments. The use of IRS §168(k) enables the full depreciation of mining hardware costs, incentivizing retained Bitcoin exposure.

Positioning Arch Lending

Past events, such as tax-loss harvesting, offered different strategies for tax efficiency, often at the expense of long-term Bitcoin exposure. Now, Arch Lending aims at offering a compliant method for tax-efficient Bitcoin compounding.

This initiative, backed by Galaxy Ventures and others, positions Arch Lending as a leader in tax-efficient investment strategies. While Bitcoin remains the primary focus, incremental market changes and asset allocations may arise.

“TaxShield turns a line item most investors dread into a growth engine,” remarked Dhruv Patel, CEO of Arch Lending.