As tax season approaches, the landscape for Bitcoin mining has shifted dramatically, thanks to recent changes in U.S. tax law. Investors are now able to take advantage of a full first-year tax write-off for mining equipment, marking a significant opportunity for those involved in the sector.
Beau Turner, the CEO of Abundant Mines, discussed this development during a recent interview with TheStreet Roundtable. He noted that the restoration of full bonus depreciation rules, which came into effect in mid-2025, has transformed the taxation of mining equipment. Previously, miners could only deduct about 40 percent of the equipment costs in the first year, but under the new framework, they can now write off the entire purchase immediately.
Turner highlighted the implications for investors, stating, “In July of this past year of 2025, we got the One Big Beautiful Bill passed, which brought back into effect one hundred percent bonus depreciation in year one for qualifying equipment.” This change directly benefits Bitcoin miners, as the structure used by Abundant Mines ensures that clients own their mining machines outright. “They actually purchase the machines. They are the owner of the machines that they got through us,” he explained, emphasizing that clients can take full advantage of the write-off.
The tax benefits associated with mining are unparalleled in the cryptocurrency sector. Turner remarked, “There”s not really anything else other than mining that lets you take advantage of that,” positioning it as a potent tax strategy for serious investors. The ability to offset earned income with deductions from mining activities presents a unique opportunity for individuals and entities alike.
Even for those with modest operations, such as owning a single mining machine, the tax benefits can be substantial. Turner pointed out that almost everyone incurs some form of income tax liability, making mining a viable strategy for reducing that burden. “Even buying a single miner is a direct offset to that earned income,” he stated, highlighting the lack of income phase-out limits associated with these deductions.
With these developments, the narrative around mining has shifted. Turner argued that the current tax treatment significantly alters the risk-reward calculus for investors. Instead of merely speculating on the price of Bitcoin, owning mining equipment has evolved into a strategic move that combines tax benefits with a long-term investment perspective.
As the cryptocurrency market continues to evolve, the implications of these tax changes will likely draw increased interest from both seasoned investors and newcomers to the space, reinforcing the importance of understanding the tax landscape surrounding Bitcoin mining.
