Hardware
Mining hardware qualifies as a productive business asset. Once placed in service, qualifying equipment can be depreciated in one year via the BMF guidance on computer hardware, or alternatively through the 30% degressive AfA reintroduced under the 2025 investment programme, both paths reduce taxable profit significantly.
Up to 100% Deductible in the Year Placed in Service
Eligible hardware includes ASIC miners, cooling systems, electrical infrastructure and network equipment directly used in mining. To qualify, the equipment must be acquired and actively placed in service before fiscal year-end, and must be classified as computer hardware ("Datenverarbeitungsgeräte") under the BMF definition.
Under the BMF guidance of 22 February 2022, computer hardware can be depreciated over a useful life of just one year, effectively a full write-off in year one. Permanently available, no € cap. ASIC mining equipment qualifies as specialised data-processing hardware under this regime.
For movable business assets acquired between 1 July 2025 and 31 December 2027, a declining-balance depreciation of up to 30% per year is available under the federal Investitionssofort-programm, capped at three times the linear AfA rate. A useful fallback where multi-year planning is preferred.
An Example Calculation
In this illustrative scenario, a German GmbH generates €500,000 in pre-tax annual profit and purchases €300,000 of new qualifying mining hardware in fiscal year 2026. The 1-year AfA on computer hardware is applied, and a combined corporate tax rate of ~30 % (15% KSt + 5.5% Soli + ~14% GewSt at typical Hebesatz 400%) is assumed.
Assumptions and legal notes
Illustrative only. Figures assume a German GmbH, 2026 fiscal year, full classification of ASIC mining hardware as computer hardware under the BMF Schreiben of 22 February 2022, equipment placed in service before year-end, and a combined corporate tax rate of ~30 % (KSt 15 % + Soli 5.5 % + GewSt at Hebesatz 400 %). Effective combined rate ranges roughly 26 % – 33 % depending on municipal Hebesatz. Not included: ~26.4 % capital gains tax (Kapitalertragsteuer incl. Soli)5 on distributed dividends, VAT, and other situation-specific factors. The classification of ASIC mining hardware as "Datenverarbeitungsgeräte" should be confirmed with a qualified tax advisor. Not personal tax advice.
Hardware Cost 300,000 €
Operating Costs
Mining does not end with hardware. Under § 4 Abs. 4 EStG, all ordinary and necessary expenses incurred to operate a mining business are fully deductible in the year they are paid.
Fully Deductible the Year They're Incurred
This covers hosting fees, electricity, internet, hardware maintenance and repairs, insurance, accounting and professional services. Every recurring cost required to keep the hardware online and productive. Expenses must be documented in the tax year they are claimed.
§ 4 Abs. 4 EStG permits the deduction of any expense incurred in operating a business ("Betriebsausgaben"). For mining, this covers the full operational stack: electricity, hosting/co-location, maintenance, insurance, and depreciation. Outsourced to Bitkern, it appears as a single, clearly attributable expense line.
WHAT BITKERN DELIVERS
You Own The Hardware. Bitkern Handles The Rest.
For the tax provisions above to apply, you need to own real, productive mining equipment that's placed in service during the tax year. Bitkern provides every layer of that: hardware, hosting, operations, and an exit path. No technical expertise required. No deployment hassle. No ongoing operations.
Hardware Sourcing & Procurement
Latest-generation ASICs sourced direct from manufacturer, purchased in your name or your GmbH or AGs name.
Deployment Worldwide
Placed in service in one of 20+ data centers across the U.S., Europe, Asia and beyond.
24/7 Monitoring
Continuous uptime management with a 98% SLA. Issues identified and addressed before they impact hash rate.
Maintenance & Repairs
All hardware servicing, firmware updates and repair coordination handled by our technical team.
Monthly Statements & Reporting
Detailed reports on hash rate, earnings and operational metrics. Documentation ready for your accountant.
Optional Buyback Program
Want liquidity? We handle the secondary-market resale and provide depreciation-recapture data for clean exit.
Ready To Put Your Capital To Work?
Independent Tax Partner
Questions About VAT? Sören Hoss Has The Answers
Our independent partner Projektsteuerberatung Hoss has advised clients across the EU on VAT related projects for many years. His support covers questions around invoicing, place of supply determination and any declaration or registration obligations.
Independent Tax Partner
Questions About Income Tax? Volker Kissling Has The Answers
Volker Kissling, certified public auditor and tax advisor, supports companies with a comprehensive approach to tax and accounting matters. Our partner assists with financial reporting under commercial law and with income tax questions, among other areas.
LEGAL NOTICE
Bitkern is not a tax advisor, Steuerberater, financial service provider, or law firm. References to § 4 Abs. 4 and § 7 Abs. 1 and Abs. 2 EStG6, the BMF Schreiben of 22 February 2022 on the useful life of computer hardware and software, and the 30 % degressive AfA under the Investitionssofortprogramm (1 July 2025 – 31 December 2027) describe general concepts of German tax law only; their concrete application depends on the specific situation of the entity. The BMF computer-hardware list is exhaustive and does not name ASIC miners by category; whether the one-year useful life applies is decided case by case — some tax offices accept it, others require 3-year linear depreciation. The 30 % degressive AfA is available as a fallback regardless.6 The illustrative ~30 % combined corporate tax rate varies materially by municipality (range roughly 26 % – 33 % depending on Gewerbesteuer-Hebesatz). German federal tax law and BMF guidance change frequently. The Körperschaftsteuer is scheduled to be reduced from 15 % to 10 % in five annual steps from 2028 to 2032. Before any tax-related decision, consult a qualified German Steuerberater. Independent advisors in our partner network act on their own behalf and are not representatives of Bitkern.