Arch launched the TaxShield product to help Bitcoin holders reduce their tax burden in the U.S. through mining investments.

According to Deep Tide TechFlow news on October 21, reported by CoinDesk, the crypto assets lending company Arch has launched the TaxShield product, aimed at helping high-income BTC holders reduce their tax burden by investing in mining hardware.

This product utilizes the bonus depreciation provisions of the U.S. tax code IRS §168(k), allowing investors to deduct the cost of mining equipment from taxable income. The specific operation method is as follows: users obtain an over-collateralized loan from Arch using Bitcoin as collateral, and then purchase and host mining machines through Blockware. Investors can fully deduct the purchase cost in the first year while continuing to receive BTC mining rewards.

Arch co-founders Himanshu Sahay and Dhruv Patel stated that clients with $1 million in taxable income could reduce their federal tax burden by about $400,000. The product was developed in collaboration with well-known Bitcoin educator Mark Moss and Blockware, primarily targeting high-net-worth digital asset holders.