SUMMARY

Colin Yurcisin, a Bitcoin millionaire and founder of Leverage Mining, shares how he uses Bitcoin mining to acquire Bitcoin at a discount, secure massive tax write-offs, and preserve wealth without selling assets.

STATEMENTS

Colin invested his entire savings of $20-25K into Bitcoin at $4,500 during the COVID crash in March 2020, buying about five Bitcoin.
Through 2020-2021, Colin invested over a million dollars of his active income into Bitcoin, becoming a multi-millionaire by end of 2021 at age 25.
Colin's 2021 tax bill was $469,000 on $1.2 million income due to no tax planning, write-offs, or depreciation, paying 37% on income over $550K.
Entrepreneurship requires not just making money but preserving it through tax strategies, as the government can take more than expected without planning.
Bitcoin mining allows acquiring Bitcoin while qualifying for 100% bonus depreciation on machines in year one, offsetting ordinary income taxes.
Colin's initial beliefs about mining being for tech nerds, unprofitable, and complicated were debunked after consulting Jason Les, CEO of Riot Blockchain.
Leverage Mining helps investors acquire Bitcoin and write off all costs, prioritizing tax mitigation as partners with Tax Alchemy since 2022.
Leverage Mining manages over 55,000 terahash from 280 miners across facilities in Kentucky and Texas, serving over 100 clients.
Bitcoin has a fixed supply of 21 million, making it hard money unlike inflationary fiat currencies printed by central banks.
Pricing assets in Bitcoin shows everything from S&P 500 to gold and real estate declining in value relative to Bitcoin over time.
Bitcoin's chart over 15 years trends up only, serving as the new benchmark or hurdle rate for evaluating world economics.
No one has lost money holding Bitcoin for a full four-year period, aligning with mining machine lifespans.
The greatest threat to Bitcoin has shifted from government regulation to none, with BlackRock, ETFs, and Trump supporting it.
Bitcoin's difficulty adjustment every two weeks ensures a fair, distributed network regardless of regional concentrations like in Russia.
Bitcoin mining infrastructure is integrating with AI, using data centers for energy arbitrage and contracts from Nvidia and Microsoft.
Stablecoins on Ethereum like USDC and Tether can freeze assets, acting like controllable CBDCs, unlike Bitcoin's peer-to-peer freedom.
Over 94.7% of Bitcoin's 21 million supply is in circulation, with full issuance by 2140 due to halving events reducing new supply every four years.
Miners validate transactions on Bitcoin's public ledger, competing in pools to win block rewards of 3.125 Bitcoin every 10 minutes currently.
Bitcoin mining enables dollar-cost averaging into Bitcoin at a 25% discount to spot price over four years, with tax write-offs.
Mining machines last about four years due to 24/7 operation, but advanced cooling like immersion can extend life; contracts are structured for four years.
Halving events cut mining rewards in half but historically lead to bull markets and supply shocks within 18 months.
Leverage Mining's model frontloads all costs including four years of electricity, allowing full upfront write-offs without monthly Bitcoin sales.
Mined Bitcoin is taxed as ordinary income at its mining price as cost basis, with long-term capital gains if held over a year.
Bitcoin outperforms real estate with 50% compound annual return over 10 years versus 10.3% for housing, plus full transparency.
Clients must log 100 hours of material participation annually for active business status to qualify for depreciation write-offs.
ROI on mining packages is typically 24-30 months, recouping investment in Bitcoin while holding long-term.
Mining avoids counterparty risks like Celsius or FTX, delivering Bitcoin directly to cold storage wallets.

IDEAS

Bitcoin mining transforms tax liabilities into wealth-building opportunities by depreciating equipment to offset high ordinary income rates.
Viewing all assets through Bitcoin's lens reveals fiat's obsolescence, as everything from stocks to homes depreciates against it.
Halving events create predictable supply shocks that drive Bitcoin's price surges, turning scarcity into exponential value growth.
Institutional adoption by BlackRock and governments eliminates regulatory fears, positioning Bitcoin as an unstoppable force.
Mining pools democratize rewards, allowing small operators to share in block wins proportionally to their hash power contribution.
Advanced cooling technologies like immersion oil extend miner lifespan, enabling overclocking for higher efficiency beyond standard four years.
Bitcoin mining facilities double as AI infrastructure hubs, leveraging cheap energy for dual revenue streams from Nvidia contracts.
Stablecoins mimic CBDCs by enabling transaction freezes, highlighting Bitcoin's unique censorship-resistant appeal.
Frontloading mining costs maximizes depreciation benefits, avoiding the pitfalls of variable monthly expenses in other models.
Low-time preference investing in Bitcoin via mining beats high-frequency trading by capturing cycles without market timing stress.
China's 2021 mining ban temporarily doubled rewards for remaining miners, showcasing network resilience via difficulty adjustment.
Bitcoin's peer-to-peer nature bypasses central bank control, offering true monetary sovereignty in an inflationary world.
Energy arbitrage in mining uses wind turbines for fixed low rates, stabilizing costs against rising utility prices.
Material participation logging via apps ensures tax compliance, turning passive interest into active business deductions.
Financing miners with 0% credit cards or asset-backed loans amplifies returns without depleting personal cash reserves.
Bitcoin as collateral for loans and mortgages will soon rival traditional assets, eliminating the need to sell for liquidity.
Real estate's unlimited supply contrasts Bitcoin's cap, making the latter superior for long-term value preservation.
Mining's transparency via pool dashboards provides real-time oversight, unlike opaque real estate tenant issues.
Post-halving dips in rewards are offset by price doublings, maintaining profitability through economic equilibrium.
High-net-worth individuals prefer hands-off mining to avoid operational hassles of real estate or luxury car purchases for write-offs.
Bitcoin mining stabilizes energy grids by incentivizing renewable investments from states like Texas and Wyoming.
No-KYC direct wallet payouts protect privacy, shielding users from data breaches common in centralized platforms.
Scaling to megawatt operations yields net positive cash flow in Bitcoin monthly, ideal for tax-free jurisdictions.
Bitcoin's deflationary design ensures perpetual miner incentives via transaction fees after all coins are mined.
Integrating tax pros like Carlton Dennis early prevents massive bills, blending entrepreneurship with fiscal strategy.

INSIGHTS

Bitcoin redefines wealth preservation by serving as the ultimate store of value, where holding it makes all else relatively cheaper amid fiat inflation.
Tax-advantaged mining bridges the gap between earning income and retaining it, turning IRS obligations into Bitcoin accumulation.
Network effects from institutional buy-in render Bitcoin indestructible, as even adversaries like governments now stake their futures on it.
Scarcity engineered through halvings creates self-reinforcing cycles of value appreciation, outpacing any expandable asset like real estate.
Difficulty adjustments embody Satoshi's genius, maintaining fairness and adaptability in a globally distributed system.
Hands-off models like Leverage Mining democratize access, allowing busy professionals to mine without technical burdens.
Pricing life in Bitcoin shifts perspective from short-term volatility to long-term dominance, fostering conviction over fear.
Dual-use infrastructure for mining and AI captures converging tech trends, amplifying energy efficiency and profitability.
Avoiding stablecoins preserves financial autonomy, as centralized controls undermine the decentralization ethos.
Material participation requirements ensure genuine business engagement, aligning tax benefits with real economic activity.
ROI timelines in mining reward patience, often yielding more Bitcoin during bear markets than spot buying at peaks.
Direct wallet delivery eliminates intermediary risks, safeguarding assets in an era of platform failures.
Bitcoin's outperformance of traditional assets stems from its transparency and immutability, reducing hidden costs.
Financing innovations like collateralized loans position Bitcoin as a productive asset, not just a speculative one.
Long-term holding via mining builds generational wealth, passing hard money to heirs without forced sales.

QUOTES

"You can't just make money. You have to actually learn how to preserve your wealth and play the tax game as well."
"Price everything in Bitcoin. Bitcoin is the hurdle rate. It is your new benchmark and until you do that, you will not see the world in a correct way."
"Bitcoin is the best real estate of all time. Okay? It's a mini house that you can transfer in your pocket or in cyberspace."
"Look at the Bitcoin chart over 15 years. It's up only to the right."
"No one has ever lost money holding Bitcoin for a 4-year period."
"The game is it's done. They're all accepting of it right now. They're pushing it."
"Satoshi's a genius. He created the difficulty adjustment. So every two weeks a difficulty adjusts to make it a fair playing field."
"Bitcoin was the first and only crypto ever created. All the other cryptos out there are just copy paste of Bitcoin with adjustments that allow them to control and manipulate the supply."
"If you just hold one Bitcoin, your entire life gets cheap. You can afford everything."
"We all want one result, right? We all want to make a lot of money, save most of it, pay no taxes in a legal fashion."
"Miners are validating transactions and they get paid for that validation."
"You're mining Bitcoin at a discount to the spot price."
"Bitcoin is a hard money with a total supply of 21 million. And that just changed everything for me."
"The system's broken, right? Unless they somehow put the dollar back on a gold standard."
"You get to participate directly in the greatest wealth transfer in human history."

HABITS

Invest all post-expense income directly into Bitcoin to build conviction and skew net worth toward hard money.
Consume educational content like Michael Saylor podcasts and Mark Moss videos to deepen Bitcoin understanding.
Read books on monetary systems such as "The Lords of Easy Money," "The Fiat Standard," and "The Bitcoin Standard."
Dollar-cost average into Bitcoin regularly, whether through spot buys or mining to avoid timing the market.
Maintain low time preference by holding Bitcoin for at least four years to capture full cycles.
Log 100 hours annually of material participation in mining business activities for tax compliance.
Use 0% interest credit cards to finance mining equipment, leveraging OPM for asset acquisition.
Monitor mining pools daily for transparency on uptime, rewards, and payouts without micromanaging.
Consult tax professionals early in entrepreneurial journeys to integrate planning from day one.
Diversify energy sources like wind turbines for fixed, low-cost power in mining operations.
Avoid centralized platforms; store mined Bitcoin in cold wallets for security and privacy.
Track business expenses meticulously, including electricity and setup, for ongoing write-offs.
Renew mining contracts every four years with more efficient machines to stay competitive.
Build networks with experts like Jason Les for vetted suppliers, software, and hosting.

FACTS

Bitcoin's total supply is capped at 21 million coins, with 94.7% already in circulation as of now.
Halving events occur every four years, reducing mining rewards by half; the next is in 2028.
Average cost to mine one Bitcoin is about $85,000-$90,000, versus spot price of $114,000.
No investor has lost money holding Bitcoin over any four-year period historically.
Riot Blockchain is the top publicly traded Bitcoin mining company on NASDAQ.
U.S. dollar purchasing power has declined 40% in the past five years due to inflation.
Bitcoin achieved a 50% compound annual return over the last 10 years.
Real estate averaged 10.3% compound annual return over the same 10 years.
China's 2021 mining ban removed 50% of global hash rate overnight.
States like Texas, Pennsylvania, and Wyoming have invested hundreds of millions in Bitcoin mining.
BlackRock's IBIT is the best-performing and most profitable ETF in history.
MicroStrategy holds over 600,000 Bitcoin in its treasury.
Average U.S. home price has fallen when denominated in Bitcoin over the past 10 years.
Mining machines consume power at 6-7 cents per kWh in optimized facilities versus 15-20 cents residential.
Exxon is mining Bitcoin to reduce emissions through energy utilization.

REFERENCES

Books: The Lords of Easy Money; The Fiat Standard; The Bitcoin Standard.
People/Influencers: Michael Saylor (MicroStrategy CEO); Mark Moss; Jason Les (Riot Blockchain CEO); Carlton Dennis (Tax Alchemy); Jack McCall (client example).
Companies/Organizations: Riot Blockchain; BlackRock (IBIT ETF); Leverage Mining; Tax Alchemy; Bitmain (hardware provider); F2 Pool (mining pool); Compass Mining; Blockware; Bit Deer; Kraken; Coinbase; Celsius; BlockFi; FTX; Nvidia; Microsoft; Oracle; Exxon; Chase Bank.
Tools/Software: Mining app for tracking material participation hours; F2 Pool dashboard; Cold storage wallets.
Projects/Events: Bitcoin halving (2024); Trump Bitcoin reserve proposal; U.S. nuclear-powered mining center in Pennsylvania; AI infrastructure contracts; 0% business credit cards; Asset-backed loans.
Media: Michael Saylor podcasts/YouTube; Colin's YouTube channel (@Colincyurcisin); Credit Class business; Leveraged Mining website.
Other: Section 179 deduction; Bonus depreciation; Section 1662A; NAICS codes for LLC setup; LegalZoom for business formation.

HOW TO APPLY

Assess your annual income and tax liability to determine if 37% federal rate applies, targeting packages that offset it.
Consult a tax professional like Carlton Dennis to confirm eligibility for bonus depreciation on mining equipment.
Form an LLC using appropriate NAICS code for active mining business via LegalZoom or accountant.
Log initial setup activities, like forming the LLC, in a participation tracker app to build toward 100 hours annually.
Select a mining package based on desired write-off, starting at $65K for three miners with four-year electricity.
Finance purchase with 0% credit cards or asset-backed loans to preserve cash and leverage OPM.
Onboard with Leverage Mining team for hardware sourcing from Bitmain and pool setup on F2 Pool.
Pay upfront for all costs including machines, setup, maintenance cushion, and fixed electricity to maximize year-one write-off.
Receive daily Bitcoin rewards directly to cold storage wallet, avoiding centralized platforms.
Monitor pool dashboard weekly for uptime, hash rate, and payouts without daily intervention.
Deduct 100% of machine costs via Section 179 in year one, plus one year of electricity upfront.
Offset remaining electricity expenses annually (about 10% per year) against mining or other business income.
Hold mined Bitcoin long-term for over one year to qualify for lower capital gains taxes if selling.

ONE-SENTENCE TAKEAWAY

Bitcoin mining enables high earners to acquire scarce assets tax-free, preserving wealth through depreciation and long-term holding.

RECOMMENDATIONS

Prioritize Bitcoin over fiat savings to combat inflation and enhance purchasing power over time.
Integrate tax planning from the start of any entrepreneurial venture to avoid surprise IRS bills.
Use mining for dollar-cost averaging into Bitcoin at discounts, especially late in bull cycles.
Build conviction by studying Bitcoin's history and pricing all assets against it for clearer decisions.
Partner with vetted firms like Leverage Mining for turnkey operations to bypass technical hurdles.
Log material participation diligently to ensure active business status and full depreciation benefits.
Opt for fixed energy contracts in renewable-rich areas to lock in low costs against rising rates.
Avoid stablecoins and centralized exchanges; stick to Bitcoin for true decentralization.
Finance mining with low-interest debt to scale without depleting personal liquidity.
Hold mined Bitcoin indefinitely, using it as collateral for loans instead of selling.
Diversify mining into AI-ready infrastructure for future revenue beyond crypto rewards.
Target four-year horizons aligning with machine life and Bitcoin's proven holding periods.
Network with mining CEOs and tax experts for insider access to suppliers and strategies.
Monitor halvings closely, as they precede supply shocks and price surges.
Insure facilities and consider individual miner coverage for operational risks.
Start small with three-miner packages if new to ensure fit before scaling.
Educate accountants on mining via provided resources to gain their approval.
Renew contracts with efficient miners every four years to maintain edge.

MEMO

Colin Yurcisin's journey into Bitcoin began in the depths of the 2020 COVID crash, when he poured his entire $20,000-$25,000 savings into the cryptocurrency at $4,500 per coin, acquiring five Bitcoin that would soon propel him to multi-millionaire status. By 2021, at just 25, he had funneled over a million dollars of entrepreneurial income—earned from his credit education business—straight into Bitcoin, riding the wave to $69,000 peaks. But success brought a harsh lesson: a $469,000 tax bill on $1.2 million in ordinary income, with no deductions or planning in place. "You can't just make money," Yurcisin reflects. "You have to preserve your wealth and play the tax game." This epiphany shifted his focus from mere accumulation to strategic preservation, leading him to Bitcoin mining as a dual-purpose tool for growth and tax mitigation.

Skeptical at first—viewing mining as a nerdy, unprofitable endeavor—Yurcisin's perspective flipped after a pivotal call with Jason Les, CEO of NASDAQ's top mining firm, Riot Blockchain. Introduced via tax expert Carlton Dennis, Les revealed how mining machines qualify for 100% bonus depreciation under Section 179, allowing full write-offs in year one. No longer buying Bitcoin on exchanges with after-tax dollars, Yurcisin could now offset high earners' 37% rates while machines churned out coins at a discount. Launching Leverage Mining in 2022, he built a hands-off model: clients pay upfront for hardware, four years of fixed electricity, and maintenance, frontloading deductions without monthly hassles. Today, managing 280 machines across Kentucky and Texas facilities, the firm serves over 100 clients, delivering $2.3 million in write-offs last year alone.

At its core, Bitcoin mining secures the network by validating transactions on the immutable blockchain—technology pioneered by Bitcoin itself, not Ethereum as many assume. Miners join pools like F2 to compete for 3.125 Bitcoin block rewards every 10 minutes, earning proportionally to their hash power. Yurcisin emphasizes Bitcoin's engineered scarcity: a 21 million cap, with halvings every four years slashing new issuance, ensuring deflationary pressure. Over 94.7% is already mined, but full circulation stretches to 2140. This contrasts sharply with inflationary fiat, where central banks erode 40% of dollar value in five years. "Bitcoin is the best real estate of all time," Yurcisin says—a portable, indestructible asset that makes life cheaper when priced against it.

Regulatory fears have evaporated, Yurcisin argues. Once worried about the SEC, he now points to BlackRock's blockbuster ETF, Trump's proposed reserve, and institutional flows as proof the "game is done." Even China's 2021 ban, which halved global hash rate overnight, showcased resilience: Satoshi's difficulty adjustment recalibrated rewards fairly within weeks. Mining's future intertwines with AI, as facilities arbitrage cheap energy from wind farms for Nvidia contracts, turning data centers into versatile powerhouses. Stablecoins? Yurcisin warns they're veiled CBDCs, freezable on Ethereum—unlike Bitcoin's peer-to-peer purity.

Practically, mining yields Bitcoin at $85,000-$90,000 cost versus $114,000 spot, a 25% edge over four years, with ROI in 24-30 months. Machines, air- or immersion-cooled supercomputers, run 24/7 but depreciate fully upfront under an active LLC. Clients log 100 hours yearly—via Yurcisin's custom app—for compliance, deducting 70% in year one and 10% annually thereafter on electricity. No third-party risks: rewards flow straight to cold wallets, dodging debacles like Celsius. Compared to real estate's 10.3% returns or depreciating luxury cars, mining's 50% compound growth shines, with full transparency via dashboards.

Yurcisin tailors for high earners: $65,000 packages for three miners save $24,000 at 37% rates, scaling to $188,000 on $510,000 investments. For tax-free locales, he advises spot buys or monthly-sales models netting $60,000 monthly on megawatt setups. Barriers like noise, heat, and sourcing from China deter DIY; pros handle it seamlessly. States like Texas invest millions in mining to stabilize grids, while Exxon uses it to cut emissions. "Participate in the greatest wealth transfer," Yurcisin urges—denominate in Bitcoin, hold low-time preference, and watch fiat assets fade.

Critics might question volatility, but Yurcisin counters: no four-year losses, ever. Post-halving dips yield surges; 2024's cut from $50,000 presaged $100,000 highs. Financing via 0% cards or portfolio loans amplifies leverage—one client borrowed $1.8 million at 6%, now earning $50,000 monthly in Bitcoin. For legacy building, it's ideal: pass hard money to heirs, collateralize for liquidity without sales. As AI and energy converge, mining evolves beyond crypto, but Bitcoin remains the "final boss" asset.

Ultimately, Yurcisin's masterclass demystifies mining as accessible freedom: acquire the scarcest money legally tax-free, sidestepping real estate woes or car absurdities. With mentors like Saylor and infrastructure booming, it's a playbook for the inflation-ravaged era. Due diligence is key—consult pros, track participation—but for conviction holders, it's the path to preserved, growing wealth.