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: 

There is currently 100% bonus depreciation on the purchase of a miner. 

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 Bitcoin provides the opportunity to receive more Bitcoin for less money, hence the term “mining at a discount.” 

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). 

What this means is that for the daily cost of $7, you are receiving $11 worth of Bitcoin. 

If you were to take that same $7 and buy Bitcoin directly, you would only have $7 worth of Bitcoin. 

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 expense can be 100% written off against your taxable income for the year. 

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.