Cryptocurrency mining revenue is currently taxed as income, requiring Compass miners to pay income taxes on the bitcoin they mine. Miners are also sometimes forced to sell a portion of their mining revenue for dollars to cover their tax bills, which creates an additional taxable event, requiring miners to pay capital gains taxes.
By mining in a Choice account, Compass miners can avoid income taxes on their mining revenue in the short term or indefinitely, depending on the type of IRA they use. Tax-efficient mining presents enormous benefits to retail miners and empowers them with another tool to mine even more profitably at a smaller scale.
Choice is reinventing the retirement account, enabling users to choose how they plan for and invest in their future. Unlike typical retirement accounts which limit clients to cookie-cutter funds, Choice clients can invest in bitcoin alongside thousands of other assets. To date, the Choice extended platform has grown to power over 125,000 retirement accounts, with assets under custody of over $18 billion across more than 20,000 assets.
Compass Mining is the world’s first and fastest-growing marketplace for bitcoin miners to operate profitably at any scale. Barriers to mining are leveled through Compass supplying retail miners with access to the same high-quality mining hardware and verified hosting facilities as the world’s largest mining companies. It only takes an easy five-step process for anyone to start mining bitcoin. In July, Compass Mining reached over 450 petahash (PH) of hashrate across all its mining customers.
To begin mining through Compass with a Choice account, enter a valid email on the Choice website. Miners interested in the tax benefits of mining to their Choice account must hold enough funds in their account to purchase mining hardware. After their mining hardware is purchased with Choice funds and comes online, mining payouts will be sent to their Choice account.
Choice is excited to expand the bitcoin circular economy and make it easier for individuals to save for their future. Using a Compass machine in a Choice IRA, miners limit the control of large mining companies, have ownership of their own mining hardware, and accumulate their own freshly minted bitcoins at a below-market rate with the strong tax benefits of Choice IRAs.
“At Compass Mining, our singular goal is to democratize bitcoin mining by making it as simple and accessible as possible for everyone. The ability to add bitcoin mining to your retirement plan is ground-breaking. Our entire team is thrilled to now offer tax-efficient mining options through Choice accounts," said Whit Gibbs, CEO of Compass Mining.
“We’re always looking to find solutions for customers who are trying to save more of their hard-earned money and plan for their future,” said Ryan Radloff, CEO of Choice. “Being able to purchase a Compass miner within your IRA and mine bitcoin in a tax-advantaged account is an incredible opportunity. Our entire team is excited to work with Compass and as the industry continues to evolve.”
This announcement material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.