Why mine Bitcoin instead of buying it directly

There are a few reasons why mining is superior to buying: tax advantaged, mining at a discount, machines hold value. 

*We are not tax professionals and recommend consulting one prior to purchasing*

Tax Advantages of Mining: 

Bitcoin mining currently qualifies for significant bonus depreciation, meaning a substantial portion of your miner purchase price may be written off against your taxable income in the year of purchase — consult a tax professional to confirm the applicable rate and qualifying years (consult a tax professional for the applicable tax years and any scheduled phase-down of this rate). Monthly operating expenses are also deductible. Buying Bitcoin directly offers neither of these deductions.

• Potential bonus depreciation on miner purchase (e.g., a $50,000 investment may qualify for a substantial write-off in the year of purchase)
• Monthly operating expenses deductible against income
• Neither benefit applies to direct Bitcoin purchases

This means that if you spent $50,000 on miners in 2026, you could write off that full purchase for $50,000 against your taxable income for the year. 

In addition to that, you can write off your monthly operating expenses from mining against your income as well. 

Buying Bitcoin directly does not expose you to these tax advantages. 

Mining at a Discount: 

Mining at a discount means you receive more Bitcoin for the same dollar spent compared to buying it directly — acquiring more Bitcoin for less capital outlay. For example, a current-generation ASIC such as the S21 XP can cost less per day to operate than the Bitcoin value it produces; the exact daily cost and yield vary based on your electricity rate and the current Bitcoin spot price. Contact us for up-to-date profitability estimates.

• Daily operating cost (S21 XP): varies by hosting rate
• Daily Bitcoin yield: varies by current Bitcoin spot price
• Buying the equivalent dollar amount of Bitcoin directly yields only that face-value amount

Mining with an S21 XP currently costs $7/day to run (depending on your electricity rate) and yields $11/day worth of Bitcoin (depending on its current spot price). 

ASICs Hold Value: 

The machines hold value as an asset. 

Simple Mining has a used marketplace where customers can sell their machines. 

You can think of this as a used car marketplace. 

While the machine is not worth the full amount you purchased it for, it holds a position of the value, allowing you to recoup some of your initial investment. 

Overall:

Bitcoin mining yields more Bitcoin than buying it directly. 

There is initial capex required to purchase machines, but that purchase and monthly operating expenses may be substantially written off against your taxable income — confirm the applicable deduction rules with a tax professional. 

The machine itself holds a portion of its value as well, and can be sold on our secondary marketplace for a portion of its initial value.