Summary
Leveraged Mining founder Colin Yurcisin on mining vs. buying Bitcoin, the tax game high earners miss, and why the machine runs on a four-year clock.
In a recent conversation on the Better Wealth Show, LM founder Colin Yurcisin explained why he stopped buying Bitcoin on an exchange and started mining it instead. The short version: he wanted the same asset, without the tax hit that comes with it.
His story starts with a hard lesson. He went all-in on Bitcoin early, made millions, then got a bill he did not plan for.
You can't just make money. You have to actually learn how to preserve your wealth and play the tax game as well.
Making money is one job. Keeping it is a different one.
The problem high earners run into
When you buy Bitcoin on an exchange, you buy it with after-tax dollars. You already paid the government. Then you invest what is left.
Colin lays out the math plainly. High earners in the US can pay a top federal rate of 37%. Earn a lot, and a big share leaves before you invest a dollar.
I think we all want one result, right? We all want to make a lot of money, we want to save most of it, and we want to pay no taxes in a legal fashion.
How mining changes the picture
Here is the shift. A mining machine is equipment. When you run it inside a real, active business, the machines and related costs may be treated as business expenses. That can open the door to accelerated or bonus depreciation.
Colin put the idea simply when it first clicked for him:
So I'm still getting the outcome I want, except now I'm eliminating the tax problem.
Same outcome. He still ends up holding Bitcoin. But now the machines earn it over time, instead of him buying it outright with taxed income.
One caution, and Colin says it himself: he is not a tax advisor. These treatments only apply to a genuine active business, and whether any of it fits your situation is a question for your own CPA. Nothing here is a promise of a specific result.
Why four years?
People ask why LM builds plans around a four-year window. The machines are not timed to break on a date. Mining rigs are computers running at full speed 24/7. They get hot, and parts wear. LM also contracts its energy in multi-year blocks, so a plan is built to run cleanly for about four years.
Four years also lines up with Bitcoin's own rhythm. Every four years the network cuts the new supply of Bitcoin in half.
The part LM handles
Colin is honest that doing this alone is rough. Home power is too expensive, the machines are loud, and sourcing rigs from overseas is a mess.
That is the gap LM fills. Fully managed hosting, on-site technicians, fixed energy contracts, and machines running in real facilities. Today LM runs 297.5 PH under management for more than 300 clients, with hosting across Kentucky, Washington, Texas, North Carolina, Pennsylvania, Oklahoma, and Mississippi. Over 80% of clients renew, and most are mining within two weeks. LM also works with 40+ CPA and tax-strategy firms, and provides clean documentation so your accountant has what they need.
The point Colin keeps coming back to is not hype. It is control. You own the business. You own the machines. The Bitcoin goes to your own wallet.
This is not financial or tax advice. Always consult your own CPA.
Curious whether mining fits your tax picture this year? Book a call and we'll walk you through it.