The check you were about to write the IRS.
Redeploy it instead.
Most owners at this level are not short of investment ideas. They are short of deployments that are simultaneously capital-efficient, genuinely productive, and someone else’s job to operate.
“If I am writing a seven-figure check to the Treasury anyway, is there a smarter way to redeploy some of that capital into an income-producing asset that also fits my long-term strategy?”
For context, since this asset class is still new even to sophisticated allocators: Bitcoin mining is the operation of specialized computers, ASICs, that verify transactions on the Bitcoin network and are paid in new bitcoin for doing so. The economics reduce to a single spread, the cost of electricity and hardware against the market value of the bitcoin produced. It is a real, physical, industrial operation, not a financial instrument or a fund. What follows treats it as exactly that: infrastructure you own outright, evaluated the way you would evaluate any other productive asset.
Get the Family Office Guide.
A 31-page guide to Bitcoin infrastructure ownership: the structure, the operating model, the risk and custody questions, and how this compares to the other productive assets already on your desk.
If it warrants a conversation after that, book time below with someone who can actually answer structural questions, not a sales representative reading from a deck. If it does not warrant a conversation, no one will chase you.
Abundant Mines does not provide tax, legal, or investment advice. We can introduce you to professionals who structure these engagements, and we expect your own advisors to review anything before you act on it.
Book 30 minutes, no deck required.
This is not a tax strategy. It is an allocation.
Tax treatment is what makes the arithmetic work. It is not what makes the asset worth owning. Purpose-built computing infrastructure produces Bitcoin at a cost of production rather than a market price, holds residual value as equipment, and sits alongside commercial real estate, private credit, and energy infrastructure as a productive line on a balance sheet.
If the only thing that interested you here was the deduction, we would tell you to look at something else. The deduction happens once. The asset is the reason to do it.
Your questions, in the order you actually ask them.
Most material in this category opens with tax. We have put it fifth, because that is where it belongs in the decision.
Capital allocation
Whether this is a better use of the next dollar than the alternatives already on your desk, and whether it complements what you hold rather than duplicating it.
- Is this a better deployment than my next-best option?
- Does it improve long-term after-tax returns?
- Does it complement the existing portfolio?
Legitimacy
Whether the structure is established and defensible, and whether it survives examination by your own advisors. Book a call and we’ll walk your team through the structure directly — we expect your CPA and counsel to push back, and they should.
- Will my CPA and attorney support this?
- Can it withstand scrutiny?
Operational simplicity
You are not looking for another business to run. We own and operate the facilities, handle deployment, monitoring, maintenance, and repair, and charge a flat monthly rate per machine. Your involvement is ownership and direction, not operations.
- Am I taking on a management burden?
- Is the ownership experience predictable?
Risk management
Who operates the infrastructure, how the asset is secured, what is insured, and what happens when something fails. Equipment is insured at replacement value at no additional cost. Bitcoin produced never touches our balance sheet; it settles to a wallet you control.
- Who is actually accountable if this goes wrong?
- What is the custody arrangement?
Tax efficiency
First-year bonus depreciation under §168(k) on equipment placed in service during the tax year, entity structuring, and timing. Material and worth structuring properly, but supporting the investment decision rather than driving it.
- How does the deduction actually land?
- What does the exit look like after recapture?
How we talk about this, and why.
This is not word games. The distinction is the difference between a purchase made to avoid something and a position taken because it belongs in the portfolio. The first one gets unwound in a bad quarter. The second one does not.
Single-purpose deployment, held directly.
You own the equipment outright, with serial numbers and documentation, typically held in an existing operating entity or a single-purpose LLC. We operate it. The Bitcoin it produces settles to a wallet you control and is never custodied by us.
Most owners at this level already have the entity. Where they do not, it is a conversation with your counsel, not an obstacle, and it rarely needs resolving before a deployment decision.
- Ownership
- Direct and outright. No revenue share, no partnership interest, no fund structure.
- Operations
- Fully managed. Power, deployment, monitoring, maintenance, labor, and repair under a flat monthly rate per machine.
- Custody
- Non-custodial. Production settles to a pool account and wallet you control. Pool optionality is yours.
- Insurance
- Replacement-value coverage on covered events, included rather than sold separately.
- Uptime
- 95% contractual guarantee, backed by our own fleet redirecting hashrate during service.
- Term
- Twelve-month hosting agreement. After that the equipment is yours to keep, relocate, or sell.
- Horizon
- Roughly a five-year economic life, with residual equipment value at exit.
- Jurisdiction
- Facilities owned and operated in Oregon, with no state sales tax on equipment.
Honest disqualifiers, not a sales pitch.
- You need daily liquidity. This is a twelve-month-minimum hosting commitment against physical equipment, not a tradeable position.
- You’re not already comfortable with bitcoin price volatility as an asset class. The tax and operating structure doesn’t change the underlying exposure.
- You want passive, no-oversight capital deployment. You still own the equipment and the outcome; we operate it, we don’t absorb the business risk for you.
We were the counterparty risk once.
In 2022 we placed just under half a million dollars of equipment with a hosting provider we had not visited. The machines were left exposed to weather. The operator went bankrupt. We recovered almost nothing.
Beau Turner & Christine Marie, Co-Founders, Abundant Mines
Abundant Mines was built as the specific correction to that. We own and operate every facility, there are no brokers or white-label intermediaries between you and the infrastructure, and we will host you at any site you would like to walk first. That is not a value statement. It is the reason the company exists.