Full Transcript for How Bitcoin Mining Just Became a Tax Strategy for Business Owners

looks like in the future, right? 51 00:05:23,840 --> 00:05:28,460 So, David, we're here today to talk about Blockware and the services they provide, 52 00:05:28,560 --> 00:05:35,260 particularly the mining as a service aspect, and even more particularly how business owners might 53 00:05:35,260 --> 00:05:40,720 think about using mining for their own businesses. So, I'll kick it over to you first. Could you give 54 00:05:40,720 --> 00:05:48,780 everyone a quick overview of Blockware. Yeah. So, you know, quite simply, Blockware, 55 00:05:48,940 --> 00:05:54,340 we're just a mining as a service company, right? So you buy the computers, we place them in our 56 00:05:54,340 --> 00:06:00,420 facility, we do all the heavy lifting. So we're quite literally doing the management for you. 57 00:06:00,780 --> 00:06:05,040 You know, we're doing the services, the technical aspect, you know, the repair aspect. 58 00:06:05,040 --> 00:06:14,440 we do all of those things for you, you know, within our facilities and we give you and we give you access to industrial rates as well. 59 00:06:14,640 --> 00:06:19,840 Right. So it really just kind of embodies this whole kind of like white glove as a service aspect. 60 00:06:19,840 --> 00:06:32,740 So it allows you to go from, you know, having no miners to having, you know, in scaling up to thousands, if you'd like, you know, and and being able to rely on on a custodian like block where. 61 00:06:33,640 --> 00:06:34,680 And where do you guys have the miners? 62 00:06:34,920 --> 00:06:36,940 Plus, what is your particular role in the company? 63 00:06:38,340 --> 00:06:42,140 So, yeah, so we have, you know, we have several facilities throughout the US. 64 00:06:42,760 --> 00:06:48,140 Our flagship is over in Eastern Kentucky, West Virginia area. 65 00:06:48,320 --> 00:06:49,540 It's about 50 megawatts there. 66 00:06:49,620 --> 00:06:51,960 Then we have other sites throughout the US. 67 00:06:51,960 --> 00:06:59,900 Our most recent being at West Texas in the Saluna site, which was announced in their publicly traded company. 68 00:06:59,900 --> 00:07:07,300 But we partner in and have several sites through Oklahoma, Georgia, North Dakota, all throughout the US. 69 00:07:08,500 --> 00:07:13,460 And as far as my role within Blockware, I'm the head of institutional sales. 70 00:07:14,540 --> 00:07:18,060 So primarily, a lot of account executive work. 71 00:07:18,280 --> 00:07:23,720 So I work alongside many hedge funds, family offices, syndications. 72 00:07:23,720 --> 00:07:35,120 And, you know, the regular Joe wants to get from the regular Joe who wants to get into the industry to, you know, again, right, like a little bit more astute investors, right? 73 00:07:35,280 --> 00:07:44,960 Accredited investors as well that have maybe have like small businesses or are seeking to kind of get into this space with a little bit more with a little bit more strategy. 74 00:07:45,760 --> 00:07:45,860 Yeah. 75 00:07:46,220 --> 00:07:47,280 What is the strategy? 76 00:07:47,280 --> 00:07:50,660 So, I mean, it's one thing if you're like a family office, I suppose. 77 00:07:50,660 --> 00:08:00,320 But if you are some other institution, I'm thinking in particular a small business, why would you potentially consider mining for your operation? 78 00:08:00,540 --> 00:08:05,980 Let's just say if you're just a mom and pop shop, you know, doing your normal day to day, you have nothing to do with Bitcoin or mining. 79 00:08:06,500 --> 00:08:14,100 Why would you consider mining or maybe, you know, purchasing a share, purchasing some miners from Blockware? 80 00:08:15,360 --> 00:08:17,240 Yeah, it's a great question, right? 81 00:08:17,240 --> 00:08:20,840 So, you know, especially now, you know, we just, 82 00:08:21,140 --> 00:08:23,840 we just got this introduction of this big, beautiful bill. 83 00:08:24,880 --> 00:08:30,280 And, you know, we're seeing a ton of activity in terms of just questions, 84 00:08:30,580 --> 00:08:45,476 you know resorting to what going on with this whole bonus appreciation And it a very very big big point Right And I think this applies to so many small business owners The reality is that many people are seeking to actually have 85 00:08:45,476 --> 00:08:51,016 and acquire more Bitcoin, but may have their day-to-days that come into play as well. 86 00:08:51,776 --> 00:08:58,296 And this is the best introduction for you to get into Bitcoin, simply because you're able to now, 87 00:08:58,296 --> 00:09:04,016 you know, because of this big, beautiful bill, you're able to now potentially offset some of 88 00:09:04,016 --> 00:09:11,896 those capital gains or, or offset some income, you know, for, and, and, and buy hardware, right? 89 00:09:11,936 --> 00:09:16,056 So, you know, in other words, you're, you're, you know, you have your tax planning going throughout 90 00:09:16,056 --> 00:09:19,916 the year, you're, you're a small mom and pop business. And, you know, at the end of the year, 91 00:09:19,916 --> 00:09:25,156 it's like, Hey, you know, you have a hundred thousand dollar tax bill. Maybe you allocate 92 00:09:25,156 --> 00:09:34,196 that towards buying some hardware. That hardware intrinsically is correlated to Bitcoin. It's 93 00:09:34,196 --> 00:09:40,676 producing, it's these money printers that allows you to start building inherently your Bitcoin stack. 94 00:09:41,476 --> 00:09:48,596 As a business, what that can do for you is simply just give you a little bit more of a 95 00:09:48,596 --> 00:09:55,436 of a, of a strategic kind of flow towards this industry, because you're able to now 96 00:09:55,436 --> 00:10:01,936 have some diversification. Right. And what that, what that might kind of come down to is, 97 00:10:01,936 --> 00:10:08,016 you know, we're seeing, we're now seeing this huge, you know, this huge influx of boomers that 98 00:10:08,016 --> 00:10:13,476 are, that are, that are potentially considering to sell their businesses. You know, and this will 99

00:10:13,476 --> 00:10:17,576 come, you know, with our generation as well, Josh, right? Like in the future, there'll be 100 00:10:17,576 --> 00:10:23,976 mom and pop businesses that want to sell their business. And alongside that business, 101 00:10:24,616 --> 00:10:32,616 something that might raise the EBITDA, so to speak, is, hey, I have some Bitcoin here that 102 00:10:32,616 --> 00:10:39,896 we've been able to accumulate through the years, and this is now tied to the business. 103 00:10:39,896 --> 00:11:04,756 Right. So it allows you to participate in the market. It allows you to offset some potential, you know, some potential, you know, tax tax responsibilities that you might have towards the end of the year and and allows you to kind of, you know, keep moving forward, you know, and potentially have a more of a more of a multiple on that exit. 104 00:11:04,756 --> 00:11:06,876 And if you if you so choose to exit in the future. 105 00:11:07,696 --> 00:11:10,076 So from what you've just said, I have a couple of follow up questions. 106 00:11:10,176 --> 00:11:15,016 The first one is the big, beautiful bill, or as I like to call it, the alleged big, beautiful bill. 107 00:11:15,316 --> 00:11:18,436 There are a lot of things in there that aren't that beautiful about it, in my opinion. 108 00:11:18,576 --> 00:11:22,196 But, you know, I didn't realize that there was that much that's good for mining. 109 00:11:22,196 --> 00:11:30,296 So could you break it down a little bit more specifically or clearly what the big, beautiful bill made possible when it comes to Bitcoin mining? 110 00:11:30,296 --> 00:11:40,316 yeah so you know one one thing to really kind of go in here and it's not just resorting to mining 111 00:11:40,316 --> 00:11:46,796 specifically it actually goes into other hpcs as well so we're talking you know artificial 112 00:11:46,796 --> 00:11:52,736 intelligence as well right and you know if you remember you know earlier in this year i want to 113 00:11:52,736 --> 00:11:57,336 say it was like early you know first couple months of the year possibly like the end of last year 114 00:11:57,336 --> 00:12:05,496 You know, there was a there's this big, big push for the UAE to come in to the United States. 115 00:12:06,056 --> 00:12:13,936 And they have now they have now committed to deploying about a trillion dollars in the industry as far as HPCs and data centers. 116 00:12:13,936 --> 00:12:21,456 Now, this is all correlated. Right. And the reason why this is all correlated, of course, is because, you know, you have you have a bill. 117 00:12:21,456 --> 00:12:29,196 right um that's specifically geared towards 100 bonus appreciation right that's the focal point 118 00:12:29,196 --> 00:12:34,356 as far as like miners go i won't go into any of the other details but as far as what what matters 119 00:12:34,356 --> 00:12:42,736 to us it's like you know you are now able to you know utilize what used to be a one-time 120 00:12:42,736 --> 00:12:47,756

situation where you can take 100 bonus appreciation first year and that's going to carry on 121 00:12:47,756 --> 00:12:53,236 you know, you're not going to carry forward. Right. So, you know, being able to take, 122 00:12:53,816 --> 00:13:00,716 basically take, you know, that hardware, you know, that machine, those machines and apply it 123 00:13:00,716 --> 00:13:06,836 towards, you know, your everyday life, as far as, you know, what, what, whatever, you know, 124 00:13:06,936 --> 00:13:13,016 whatever you have in terms of, you know, your tax responsibilities. It's a huge step forward. 125 00:13:13,016 --> 00:13:22,696 Right. So and I and I and I tie that into the whole AI aspect, because, you know, one of the things that the U.S. does have that we have. 126 00:13:22,916 --> 00:13:27,996 Right. Is some of the largest and best tech companies in the world. 127 00:13:27,996 --> 00:13:47,176 Right. And it's something that we that was put into play strategically as far as like a leverage point, in my opinion, for for, you know, these large these large institutions to kind of come into the United States and be able to participate in this market. 128 00:13:47,176 --> 00:14:05,796 So I should probably know this, but what is 100% bonus appreciation? What does that mean? I feel like I'm relatively well versed in a number of things related to finance, but when it comes to taxes, what exactly does that mean? And I'm hoping that I'm not the only person, you know, who's listening to this conversation that has the same question. 129 00:14:05,796 --> 00:14:34,556 Yeah, yeah. So, I will say this, you should definitely talk to your CPA and go into the tax strategy. But really, all bonus appreciation means that you can buy that hardware, buy those assets, the machines, and you're able to offset potential income that you're receiving on a day-to-day throughout the year. 130 00:14:34,556 --> 00:14:42,136 Right. So what many astute investors and business owners do is they they put into play a lot of tax planning through the year. 131 00:14:42,536 --> 00:14:46,036 So these aren't things that just kind of comes into play at the end. 132 00:14:46,416 --> 00:14:51,036 You know, this is all throughout Q1, Q2, Q3. Right. They're planning for this. 133 00:14:51,976 --> 00:14:58,356 And the significance of that is like, hey, you're now you're now able to potentially look at mining. 134 00:14:58,356 --> 00:15:03,836 right? Because these are machines, right? Aside from the fact that we're, I call them computers 135 00:15:03,836 --> 00:15:10,456 for the, for the, for, you know, just the plebs out there, but these are ASICs, these are machines 136 00:15:10,456 --> 00:15:16,736 and these machines have one responsibility and that's to, that's to, you know, validate transactions 137 00:15:16,736 --> 00:15:22,176 and to, to create revenue each and every day, right? They're the best employees that you'll 138 00:15:22,176 --> 00:15:29,836 ever have. And, you know, as far as like the bonus appreciation aspect, you know, prior to this, 139 00:15:29,896 --> 00:15:36,036 and I, prior to this, you know, you'd have, it would go from a hundred percent to 80 to 60 to 40. 140 00:15:36,536 --> 00:15:42,276 And, you know, that's what you were able to use. Right. But now it's a hundred percent, right. So, 141 00:15:42,276 --> 00:15:49,256 you know, this, this opens up the, the, the, the floodgates to a lot of, a lot of guys and a lot 142 00:15:49,256 --> 00:15:55,776 of business owners, family offices, hedge funds, corporate finance, so to speak, that are seeking 143 00:15:55,776 --> 00:16:05,376 to not just get into potential strategic investments that might be able to help you 144 00:16:05,376 --> 00:16:11,856 not have to pay as much to Uncle Sam, but it allows you to also inherently build your Bitcoin stack. 145 00:16:12,396 --> 00:16:14,996 Yeah. And so is it appreciation or depreciation? 146 00:16:15,736 --> 00:16:16,296 Depreciation. 147 00:16:16,296 --> 00:16:24,716 So the next question I have is, you know, we have these roundup episodes every other week. 148 00:16:24,916 --> 00:16:28,076 John Gordon and Trey Sellers join me and we talk about what's been happening. 149 00:16:28,076 --> 00:16:37,596 And one of the, you know, obviously one of the major things you're talking about on a week to week basis is these Bitcoin treasury companies and how they're affecting the market and things like that. 150 00:16:37,656 --> 00:16:45,296 Now, it's frustrating because corporations have access to capital that, you know, smaller private businesses. 151 00:16:45,296 --> 00:16:48,316 But, you know, just in general, smaller businesses don't have access to. 152 00:16:48,916 --> 00:16:56,176 So, you know, for your local mom and shop, your local mom and pop shop doesn't have access to the capital that a public corporation does. 153 00:16:56,596 --> 00:17:02,416 So I guess the question here is, what does it cost to mine a Bitcoin? 154 00:17:02,916 --> 00:17:10,996 And this might be something that is blockware specific or it could just be more general to the industry. 155 00:17:10,996 --> 00:17:34,053 But my understanding is it generally costs less to mine a Bitcoin than it does to purchase a Bitcoin So it almost seems like this whole mining thing might be a great way for smaller companies smaller businesses to get access to Bitcoin in a way that even though they not getting the capital that you would get in the public market you know a public a larger corporation 156 00:17:34,673 --> 00:17:40,973 You're still able to get Bitcoin for maybe a better price than if you simply purchased it on an exchange. 157 00:17:40,973 --> 00:17:45,033 Am I thinking about it correctly? And do you have numbers connected to that? 158 00:17:46,033 --> 00:17:59,733 Yeah, yeah, yeah, absolutely. And you're thinking about it the right way, right? So when you're mining Bitcoin, and I'll speak specifically with blockware, right? You're mining Bitcoin at about a $50,000 price

point, right? 159 00:17:59,733 --> 00:18:03,993 So, and this can vary based on the efficiency of the mining rig. 160 00:18:05,333 --> 00:18:11,613 But in general, ballpark figure, you're mining at about a $50,000 price point, right? 161 00:18:11,653 --> 00:18:18,033 So, if you're looking at some of these more efficient rigs, right, you're almost looking 162 00:18:18,033 --> 00:18:23,313 at it, and a good kind of analogy here is for those who trade options, right? 163 00:18:23,333 --> 00:18:27,893 You're kind of looking at this from like an in-the-money call option, right? 164 00:18:27,893 --> 00:18:32,193 Where you're spending a little bit more money on a premium, right? 165 00:18:32,233 --> 00:18:37,713 So you're buying efficient hardware, but it's giving you that protection as well, right? 166 00:18:37,713 --> 00:18:39,473 So you're in the money, right? 167 00:18:39,473 --> 00:18:44,573 Whereas you also have mining rigs that are kind of like the out-of-the-money call options, right? 168 00:18:44,613 --> 00:18:54,133 Where you're spending like $800 or $1,000 for a mining rig, but you're mining Bitcoin at like $95K, right? 169 00:18:54,133 --> 00:18:58,053 So, you know, each mining rig is different, right? 170 00:18:58,093 --> 00:19:01,693 They all kind of carry their own, you know, risk associated. 171 00:19:01,973 --> 00:19:05,633 But the way I like to look at it is, you know, risk adjusted return, right? 172 00:19:05,653 --> 00:19:11,013 So when we're looking at Bitcoin mining, right, especially for mom and pop businesses that 173 00:19:11,013 --> 00:19:16,393 are seeking to kind of get involved in this space, you know, you are mining Bitcoin at 174 00:19:16,393 --> 00:19:17,053 a $50,000. 175 00:19:17,233 --> 00:19:23,433 And this is part of the reason why you're actually able to generate such large cash flows, you 176 00:19:23,433 --> 00:19:23,533 know? 177 00:19:23,533 --> 00:19:30,313 So this is, you know, and specifically, right, S21 pluses, you're buying those mining rigs for about $4,500. 178 00:19:31,453 --> 00:19:35,093 OK, and your cost on those is about $200. 179 00:19:35,653 --> 00:19:41,433 You know, you're generating a revenue at present at about $400 or so. 180 00:19:41,513 --> 00:19:45,493 It's going to be a little bit more than that because Bitcoin has now seen some newer highs. 181 00:19:45,813 --> 00:19:49,633 So I'm just giving you some pretty directionally accurate math here. 182 00:19:49,713 --> 00:19:50,433 It's about $400. 183 00:19:50,433 --> 00:19:55,833 So your cash on cash return is about 100% on a cash on cash return. 184 00:19:56,453 --> 00:20:04,373 And your net return is going to be about 55% or so over the course of the year. 185 00:20:05,233 --> 00:20:10,593 Now, with mining, you also have that ability to be able to... 186 00:20:10,593 --> 00:20:12,533 You should have the payback period. 187 00:20:12,533 --> 00:20:15,333 It's typically going to be anywhere between two and a half to three years. 188 00:20:15,333 --> 00:20:21,533 But in hyperbole markets, that payback period could be condensed significantly. 189 00:20:22,533 --> 00:20:27,433 We're seeing the appreciation of Bitcoin today. 190 00:20:28,253 --> 00:20:30,853 And who's to say it doesn't go to $200,000 tomorrow? 191 00:20:30,853 --> 00:20:36,693 Well, for those who've been mining or decide to get mining today, and it's not too late, 192 00:20:36,693 --> 00:20:42,573 Right. You know, you're you're you're you have to kind of keep in mind. 193 00:20:42,713 --> 00:20:46,053 It's like the why mine Bitcoin aspect. Right. 194 00:20:46,133 --> 00:20:54,133 You know, if you you buy mining rigs because of that protection, you can also buy spot Bitcoin. 195 00:20:54,453 --> 00:21:01,873 But the difference there is that it's binary. So, you know, if Bitcoin goes up, you make money, Bitcoin goes down, you lose money. 196 00:21:01,873 --> 00:21:08,633 and as you know there's really only two ways to actually accumulate bitcoin and you know that 197 00:21:08,633 --> 00:21:13,493 really just kind of comes down to you can either buy it or you can mine it you know or mining 198 00:21:13,493 --> 00:21:21,153 yeah or ornate which is mining right so so yeah or yeah and other aspects too right you can earn 199 00:21:21,153 --> 00:21:26,153 it as well right so like so when you're when you're mining bitcoin you're you're you're able 200 00:21:26,153 --> 00:21:34,393 to have this a little bit more of a risk approach, risk adjusted approach towards this simply 201 00:21:34,393 --> 00:21:42,953 because you are mining Bitcoin at that $50,000 price point. Bitcoin was to go down 40% tomorrow. 202 00:21:44,393 --> 00:21:50,913 If you had bought Bitcoin and you're just sitting in spot Bitcoin, well, you're holding on to that 203 00:21:50,913 --> 00:21:58,493 trade. Whereas in the mining side, not only have you now been able to offset some of that income 204 00:21:58,493 --> 00:22:04,333 that you have due to the bonus appreciation and the big, beautiful bill that we were discussing, 205 00:22:04,873 --> 00:22:11,793 but you're inherently dollar cost averaging into Bitcoin at the best possible price that you can, 206 00:22:12,453 --> 00:22:17,873 and you're still profitable. It allows you to take a little bit more of a step back approach 207 00:22:17,873 --> 00:22:23,993 towards the market and really focus on what's real. And what's real is that this market is, 208 00:22:24,773 --> 00:22:32,213 we're at a $3 trillion market. And what's been shown is that we are anticipating to see this 209 00:22:32,213 --> 00:22:39,353 market go to a $10 trillion to $15 trillion market cap over the next decade, which is pretty 210 00:22:39,353 --> 00:22:46,173 conservative, I think, given where we're at. So having the ability to take that step back approach 211 00:22:46,173 --> 00:22:54,173 because it's so volatile. Many people get into this apprehension, they're hindered towards getting 212 00:22:54,173 --> 00:23:00,973 into the

space because it is so volatile. With mining, you really are able to take that step 213 00:23:00,973 --> 00:23:07,293 back, really focus at what's in play, and understand that you're working in the industry. 214 00:23:07,293 --> 00:23:14,493 There is no such thing as Bitcoin without mining. You are in this space, and you're going to benefit 215 00:23:14,493 --> 00:23:22,053 in this space over the long run. And I think that's one of the most powerful aspects of 216 00:23:22,053 --> 00:23:28,313 mining Bitcoin, right? Is that you are able to take that long-term approach and have a little 217 00:23:28,313 --> 00:23:35,533 bit more of a laxed feel towards the market. So I believe you said it was 4,500 right now 218 00:23:35,533 --> 00:23:43,293 for S21s. Let's say you get 10 of those, 45,000. You said it costs about 55 to mine a Bitcoin. 219 00:23:43,293 --> 00:23:49,853 So with 10 or 11 S21s, how long did you say it would probably take to mine a Bitcoin? 220 00:23:51,433 --> 00:23:57,353 So to mine one specific Bitcoin, capital is a factor here. 221 00:23:57,873 --> 00:24:04,613 So more capital you're able to deploy, the less amount of time it takes for you to mine one full Bitcoin. 222 00:24:04,613 --> 00:24:16,013 But if we're talking about, you know, what's your what's your payback period, right, in terms of like the full forty five thousand in that example that you shared, it's going to be around two and a half to three years. 223 00:24:16,013 --> 00:24:20,153 Right. And that's the typical payback period on on an efficient mining rig. 224 00:24:20,153 --> 00:24:27,153 But but again, that can be condensed based on based on the current market dynamics. 225 00:24:27,153 --> 00:24:36,473 So recently we had hash rate, the difficulty go down about close to 10%. 226 00:24:37,153 --> 00:24:39,753 This is a net positive. 227 00:24:40,313 --> 00:24:42,853 So we're seeing volatility monitors. 228 00:24:43,413 --> 00:24:54,913 So we're seeing Bitcoin price go up, difficulty still sowing that it's at the same or lower than what it previously was, 229 00:24:54,913 --> 00:24:59,253 which is a net positive for miners over the long term. 230 00:24:59,813 --> 00:25:04,153 And the question that comes for a lot of people is like, 231 00:25:04,413 --> 00:25:06,373 well, what happens when everything gets mined? 232 00:25:08,173 --> 00:25:11,053 And this is the beauty of Bitcoin mining. 233 00:25:11,813 --> 00:25:16,013 It's that when you're looking at it from a miner's perspective, 234 00:25:16,013 --> 00:25:20,613 there's really four components that create your revenue. 235 00:25:21,373 --> 00:25:24,213 And what those are is the block subsidy. 236 00:25:24,213 --> 00:25:29,913 right so the and what that means for those who don't know is just a reward right so that 3.125 237 00:25:29,913 --> 00:25:35,613 that you're currently seeing along with the transactions right so the transaction fees 238 00:25:35,613 --> 00:25:42,593 the difficulty and the price of bitcoin so all of those four things you know are or is really what 239 00:25:42,593 --> 00:25:48,773 what um what allows you to see what your forward-looking revenues will look like for your 240 00:25:48,773 --> 00:26:00,349 mining rigs So at the end when Bitcoin is all fully mined the concept here is that transaction fees will take a bigger push 241 00:26:00,949 --> 00:26:06,229 So as this industry starts to develop more and more, we'll start to see more people utilize Bitcoin. 242 00:26:06,229 --> 00:26:15,229 Maybe it might come from institutions, but this payment highway that we're seeing will always require tolls. 243 00:26:15,229 --> 00:26:20,409 And you're just you're just a new toll. Right. In this in that analogy. 244 00:26:21,149 --> 00:26:30,049 So, you know, a lot of it comes down to if you're thinking with Bitcoin as your unit of account, which a lot of people probably don't. 245 00:26:30,169 --> 00:26:44,649 But if you are, there's always that that that question of if I put in the 55K now versus, you know, will I have more Bitcoin if I go ahead and buy 55K worth of mining rigs? 246 00:26:44,649 --> 00:26:49,169 and mine. And there's really not a great way to know that probably there's like these different 247 00:26:49,169 --> 00:26:54,309 levers you can, you can pull on different times you can buy, uh, you know, the mining rigs might 248 00:26:54,309 --> 00:26:59,409 be cheaper at certain points. And there's a lot of different levers, I guess, or a lot of different 249 00:26:59,409 --> 00:27:05,509 factors to consider. But the one thing that you, you, you know, you get, if you have miners is, 250 00:27:05,509 --> 00:27:11,649 um, the tax benefits, right? So I feel like, um, that's probably one of the key things, 251 00:27:11,649 --> 00:27:17,049 especially for a business to consider. It probably doesn't affect individuals in general 252 00:27:17,049 --> 00:27:25,089 quite as much. Is that correct? For individuals, you know, they are, I would say every individual 253 00:27:25,089 --> 00:27:35,509 should, and I'll go with this in two buckets, right? Each person, you know, is different, 254 00:27:35,509 --> 00:27:44,489 obviously. And their economics are a little bit different. With that, you have to keep in mind 255 00:27:44,489 --> 00:27:53,429 all of the tax benefits that you do get by simply creating an entity for yourself. So you forgo a 256 00:27:53,429 --> 00:28:02,809 lot of tax benefits if you aren't incorporated as a business, even as an individual. So I think that 257 00:28:02,809 --> 00:28:09,529 this actually has huge implications for, you know, the regular person out there who is, 258 00:28:09,529 --> 00:28:15,009 you know, seeking to even potentially buy like real estate, right? So when we're thinking about 259 00:28:15,009 --> 00:28:22,849 it from that perspective, it's like, hey, you know, you amount five, 10 years of your life 260 00:28:22,849 --> 00:28:28,989 when you're coming out of college to accumulate some wealth and to

potentially buy your first home, 261 00:28:28,989 --> 00:28:34,469 right? And that's typically going to be 20, 25,000 or so is what you're going to come out 262 00:28:34,469 --> 00:28:41,949 of pocket of, you know, out the door, you know. But, you know, for mining, you have this new 263 00:28:41,949 --> 00:28:47,769 introduction where you aren't dependent on credit. You aren't dependent on, you know, 264 00:28:47,909 --> 00:28:56,509 Sally Mae, right? Or, you know, anyone or Fannie, right? For that matter, to be able to get into 265 00:28:56,509 --> 00:29:02,629 that next home, right? You're able to deploy, you know, four or $5,000 into something that's 266 00:29:02,629 --> 00:29:09,109 going to start giving you the groove of actually seeing, you know, cashflow, right? And I think 267 00:29:09,109 --> 00:29:15,689 that's, it's a really big teaching tool for, you know, our youth because many people just don't 268 00:29:15,689 --> 00:29:20,729 know what it means to actually, you know, see something that's going to provide you some, 269 00:29:20,729 --> 00:29:26,589 some level of income on a month to month, day to day basis, you know, without having to overstretch, 270 00:29:27,089 --> 00:29:33,469 you know, overstretch themselves. Right. So on the other side of that, you know, and I will say, 271 00:29:33,549 --> 00:29:40,909 right, and go into your, to your example, 45,000 on that 45,000, your expenses each month is going 272 00:29:40,909 --> 00:29:45,969 to be, you know, around $2,000 a month. So you buy 10 mining rigs, you're going to come out of 273 00:29:45,969 --> 00:29:50,669 pocket about, you know, let's just use round math here. You're going to come out of pocket 50 grand. 274 00:29:50,729 --> 00:29:58,169 right? Your out-of-pocket expense is going to be 2,000 bucks a month. And for that investor who's 275 00:29:58,169 --> 00:30:02,349 like, well, maybe I should have bought, you know, maybe I should have just bought more Bitcoin. 276 00:30:02,969 --> 00:30:07,529 Well, you got to keep in mind that when you're mining, like you said, right, you have the tax 277 00:30:07,529 --> 00:30:13,469 benefits, but now you're actually able to, you can look at it also from the perspective of, hey, 278 00:30:14,189 --> 00:30:20,709 each month you're buying, you're deploying $2,000 of your capital, which can come from the 279 00:30:20,709 --> 00:30:25,509 revenues that you're generating in Bitcoin mining, or it can come from your own out-of-pocket 280 00:30:25,509 --> 00:30:34,069 expense towards dollar cost averaging into your mining rigs. And it just so happens that when 281 00:30:34,069 --> 00:30:41,869 you're spending this $2,000 per month in this example, you're getting Bitcoin at a $50,000 282 00:30:41,869 --> 00:30:49,429 price point. So you're able to look at it from that perspective, if you so choose. But then also 283 00:30:49,429 --> 00:30:54,529 So the other side of that is that, and something that we haven't really discussed, is the 284 00:30:54,529 --> 00:30:57,589 appreciation of the mining rigs itself, right? 285 00:30:57,589 --> 00:31:05,189 So when you're mining, not only are you creating, you're generating revenue month on month, day 286 00:31:05,189 --> 00:31:06,429 on day, right? 287 00:31:06,449 --> 00:31:12,469 But you're also having this dual asset exposure where the mining rigs also can appreciate 288 00:31:12,469 --> 00:31:15,169 in value based on the price of Bitcoin, right? 289 00:31:15,169 --> 00:31:22,589 So the salvage value of those things are pretty impactful, right? 290 00:31:22,589 --> 00:31:31,009 So as an example, not to belabor it too much, but as an example, last bull market, we've seen S19s. 291 00:31:31,349 --> 00:31:35,269 We were able to buy them for $1,700, call it $2,000, a mining rig. 292 00:31:36,149 --> 00:31:45,089 At the height of the market, 69K Bitcoin, those same mining rigs were being sold for $13,000 to $15,000 a piece. 293 00:31:45,169 --> 00:31:53,609 Right. Meanwhile, you're you're you're generating revenue via Bitcoin, which is in Bitcoin that you hold, you know, all throughout that cycle. 294 00:31:53,829 --> 00:32:02,409 And then you're now able to because of what we what we have at Blockware, you're now able to seek exit liquidity on those same mining rigs. 295 00:32:02,409 --> 00:32:08,609 So not only have you participated in a market on the upside, just on a pure Bitcoin perspective, 296 00:32:09,229 --> 00:32:14,229 owning that, having that spot Bitcoin, but you're now able to seek that exit liquidity 297 00:32:14,229 --> 00:32:21,869 on the hardware and not have to sell your miners on eBay or figure out how to even sell these 298 00:32:21,869 --> 00:32:28,569 things. You can do these things. You can do these transactions from the comfort of your home 299 00:32:28,569 --> 00:32:34,329 and really plan it out. Right. So it's, there's a, there's a lot of benefits here. 300 00:32:34,989 --> 00:32:39,749 Well, you've given people a lot to think about for sure. Maybe if you could share like a final 301 00:32:39,749 --> 00:32:43,989 pitch or just in general, final thoughts, especially for business owners, as well as 302 00:32:43,989 --> 00:32:49,569 where people can go to keep up with you if they're interested in following up or just seeing more of 303 00:32:49,569 --> 00:32:56,069 your content. Yeah. Yeah. You know, final pitch, I think, you know, is really, it's really two 304 00:32:56,069 --> 00:33:05,769 things. Really get off of zero. Find a way to get off of zero. The second is it doesn't always have 305 00:33:05,769 --> 00:33:11,509 to be binary. It doesn't have to be one or the other. You don't just have to buy Bitcoin or you 306 00:33:11,509 --> 00:33:17,449 have to mine Bitcoin. You can do a marriage of the both. I think business owners can really 307 00:33:17,449 --> 00:33:26,049 appreciate that. You can split the baby, mine Bitcoin, buy Bitcoin, and find a strategic 308 00:33:26,049 --> 00:33:30,549 way for those two things to really kind of help you in the future. 309 00:33:32,129 --> 00:33:32,569 Yeah. 310 00:33:33,349 --> 00:33:33,829 Perfect. 311 00:33:34,209 --> 00:33:37,869 Well, and where can people go to reach out to you if they're interested in following up? 312 00:33:38,609 --> 00:33:38,829 Yeah. 313 00:33:38,969 --> 00:33:39,189 Yeah. 314 00:33:39,429 --> 00:33:42,769 You can find me on LinkedIn, David Gamble. 315 00:33:42,769 --> 00:33:49,929 You can find me on xdgamble331, socials, that crypto guy, David, you know, there as well. 316 00:33:50,309 --> 00:33:55,249 But really, if, you know, also, you know, shoot me an email, give me a holler there. 317 00:33:55,249 --> 00:34:02,889 david.gamble at blockware solutions.com. Happy to have a conversation with any person who wants to 318 00:34:02,889 --> 00:34:05,849 to really just kind of dive into the weeds and see what it's about. 319 00:34:06,349 --> 00:34:08,789 Perfect. David, thank you so much for your time today. It's been a pleasure. 320 00:34:09,549 --> 00:34:11,989 You're very welcome. It's been awesome. 321 00:34:12,449 --> 00:34:15,849 Well, friends, it's a wrap. Thanks so much for listening to this episode of the Bitcoin 322 00:34:15,849 --> 00:34:19,369 Playbook. If you want to reach out to either me or David, you can find those links down in the 323 00:34:19,369 --> 00:34:24,969 show notes. And be sure to check out Blockware's mining as a service solution. As always, keep 324 00:34:24,969 --> 00:34:29,709 building, keep growing. Until next time, keep living and leading well.