Simple Mining’s director of research and marketing, Billy Boone, believes the future of Bitcoin exposure lies not in the token’s price but in the machines that produce it. In a recent interview with TheStreet Roundtable, Boone made the case for why ASIC miners offer investors more efficient, flexible and financially rewarding access to Bitcoin than buying the cryptocurrency outright.
Unlike spot market purchases, mining Bitcoin through owned hardware gives investors not only access to BTC at potentially lower effective prices but also tax advantages, energy optimization strategies, and physical control over their assets.
From Password Recovery to Full-Scale Mining Infrastructure
Simple Mining didn’t start as a crypto mining company. Based on available data, in 2021, the team was into cell phone repair until they started getting a flood of requests to unlock ASIC miner firmware. Seeing a persistent demand and the longevity of Bitcoin, they deployed their first container of 50 machines at a utility site in Iowa later that year.
Fast forward to 2025 and Simple Mining has 7 active locations with over 20,000 ASIC miners deployed. Boone says they will have 9 more sites online by the end of the year. The scale has allowed them to move from being a service vendor to a full-fledged hardware operator offering direct-to-consumer ASIC ownership.
ASIC Miners vs Spot Bitcoin
Beyond Cloud Mining
An important differentiator for Simple Mining is their emphasis on ownership over leasing. Unlike cloud mining platforms that tie customers to opaque contracts, Simple Mining’s model lets users buy ASIC miners outright and start mining within hours. Boone describes the process as “a couple of clicks” from payment to operation.
Customers can host the hardware at Simple Mining’s facilities or move it elsewhere if they find cheaper electricity, giving them geographic and operational flexibility. Boone says this also positions buyers to benefit from tax write-offs since the equipment qualifies for Section 179 and bonus depreciation in the US.
Their partnership with Alps Blockchain to build a 50-megawatt hydro-powered site is another proof point of their evolving model. The facility uses water-cooled hydro miners and is more cost effective than traditional fan-cooled rigs due to better thermal efficiency and lower energy draw.
“They’re very profitable right now,” Boone says. “Especially in Iowa where 65% of the energy is renewable (wind). We can take what would otherwise be wasted energy and turn it into Bitcoin and improve the grid for the utility company.”
The Numbers Behind the Argument: How ASIC Miners Beat Spot
Boone says ASIC mining is essentially buying Bitcoin at a discount. He gave an example: if a miner consumes $50,000 in electricity over a period of time but generates $110,000 worth of Bitcoin, the margin is clear. This cost basis advantage gets even more attractive when electricity is from renewables or low cost regions.
From a corporate strategy perspective, Boone says this can also serve companies looking to increase their Bitcoin per share. Instead of spending $100 million on spot BTC, a company could deploy that capital into hosted mining rigs and generate Bitcoin at a lower effective price over time, while still having exposure on the balance sheet.
Incentives Beyond Yield: Tax and Ownership Advantages
One often overlooked benefit of owning ASIC miners is how they are treated under U.S. tax code. Equipment purchases may qualify for Section 179 deductions allowing full or partial write-offs in the first year of use. Bonus depreciation allows for additional upfront deductions. Compass Mining and Bitwave both confirm that businesses involved in mining can deduct not only equipment but also energy costs and maintenance expenses from taxable income.
This creates a strong incentive for high income individuals and corporations to look into hosted mining as a tax aware Bitcoin strategy rather than just a yield focused one.
ASIC Miners vs Spot Bitcoin
Mining comes with its own risks. ASICs depreciate fast especially as Bitcoin’s difficulty rate increases post halving. Power costs can rise, regulatory conditions can change and hardware can become obsolete. Hosted customers even those with full ownership must still consider site reliability and equipment lifespan.
But Boone believes these risks are manageable especially for investors who are already bullish on Bitcoin’s long term price trajectory. With proper planning around hardware upgrades and power contracts the model can still be profitable even in tougher environments.
Conclusion: A Broader Investment Case for the Hardware Layer
For Boone, the argument is as much about infrastructure as it is about returns.
“Don’t just buy Bitcoin, own the means of production” he says.
This is a message that resonates especially well with investors looking to move beyond passive holdings and into something more hands on.
By embedding ownership into the mining equation, Simple Mining is offering an asset class that behaves more like industrial real estate or energy infrastructure than speculative crypto. It’s a hybrid of hard asset investing and digital exposure, one with utility based alignment and growing interest from both institutional and retail clients.
Billy Boone’s case for ASIC miners is not just about buying Bitcoin cheaply, it’s about control, tax and ownership. As spot prices move and regulatory conditions change, direct hardware ownership may be the more stable, cost effective and resilient way to build long term crypto exposure.
FAQ
What are ASIC miners?
ASIC miners are machines built specifically for mining Bitcoin.
How is owning ASIC miners different from cloud mining?
Cloud mining is renting hash power without owning the hardware. With Simple Mining you buy the machines so you have full control and tax benefits.
Can mining really beat buying spot Bitcoin?
According to Boone yes, especially in low cost power regions. Miners can generate BTC below market price and benefit from hardware depreciation.
What tax advantages come with ASIC mining?
In the US, equipment qualifies for Section 179 and bonus depreciation so one can write off large portions of hardware costs in the first year.
Is mining still profitable after the halving?
It depends on power costs, hardware efficiency and Bitcoin’s price. Water cooled rigs in renewable rich regions like Iowa are still generating strong margins.
Glossary
ASIC miners – Machines built for Bitcoin mining with maximum efficiency.
Section 179 – US tax provision to write off all qualifying business equipment in the purchase year.
Bonus depreciation – Additional deduction on depreciable assets (60% in 2024).
Hosted mining – A setup where miners own their ASICs but house them in a third party facility.
Spot Bitcoin – Buying Bitcoin at current market price, no leverage or mining.
Bitcoin per share – A metric used by public companies to reflect BTC exposure per share.
Sources
thestreet
finance.yahoo.com
bitwave
compassmining
insights.simplemining
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