TL;DR – Arch Lending has launched two innovative Bitcoin-backed financial products: Perpetual Income, which provides tax-advantaged recurring income without selling your Bitcoin, and TaxShield, which converts tax liabilities into Bitcoin mining operations using bonus depreciation rules. Both products let you access your Bitcoin's value while keeping your original stack intact.
Stop Selling Your BTC: 2 New Ways to Generate Infinite Income
I bought my first Bitcoin back in 2017 and built up a stack I felt good about. Then a tax bill showed up, and I did what most of us do when cash gets tight: I sold some, paid the government, and tried not to think about it. That Bitcoin would be worth roughly 5x what I let it go for, and every time Bitcoin goes up, that memory comes up.
Most people know by now that you can borrow against your Bitcoin instead of selling it, and Arch Lending already does that better than anyone I've found (8.49% APR, Anchorage custody, 40+ state licenses, no rehypothecation). But the products they've rolled out recently go way beyond basic borrowing, and a couple of them genuinely changed how I think about what's possible with a Bitcoin position.
I want to be upfront here, Arch is a sponsor of ours, but my name is on this, and we wouldn't write this if we didn't truly believe in what they're building.
1.) Perpetual Income
"I've been stacking for years and I want to start living off it"
This is the product I think about the most. You keep your Bitcoin and Arch provides a recurring, tax-advantaged income stream structured to avoid triggering capital gains. They describe it as a Bitcoin annuity, and that's the simplest way to understand it.
Think about who this is for. You bought Bitcoin years ago, held through every drawdown, and your stack is now worth enough to realistically live on. But every way to access that value means selling, which means taxes, which means the position you spent years building starts to shrink. Perpetual Income lets you keep the asset, receive income, and avoid triggering taxable events every time you need to cover a bill.
It's invite-only right now through their Genesis Access program for qualified holders, so this isn't something you sign up for on a website. But if you've reached that point with your stack, get on the phone with their team and ask about it.
| ✅ Why It Works | ⚠️ What to Watch |
|---|---|
| Structured to avoid capital gains triggers while delivering recurring income from an asset you spent years accumulating. | Invite-only through Genesis Access, so you need to qualify and speak directly with Arch's team to get started. |
02 TaxShield (with Mark Moss + Blockware)
"I made good money this year, and the tax bill is going to hurt"
CoinDesk covered this when it launched in October 2025, and the structure is worth understanding.
The Flow: Pledge BTC → take Arch loan → buy hosted mining rigs through Blockware → claim 100% bonus depreciation under IRS §168(k) → receive monthly mined BTC → original Bitcoin stays untouched.
Arch's math: $1M taxable income → potentially offset ~$400K in federal taxes at ~40% combined rates, while earning mined Bitcoin monthly. You're converting a tax liability into an income-producing asset, financed by Bitcoin you already own. The whole flow runs as a guided experience inside the Arch dashboard.
You absolutely need your CPA for this one, and I'd spend real time with them walking through the depreciation mechanics before committing. But the fact that this exists as a turnkey product inside a lending platform, not a spreadsheet some accountant cobbled together, tells you how seriously Arch is thinking about Bitcoin as a complete financial toolkit.
| ✅ Why It Works | ⚠️ What to Watch |
|---|---|
| IRS §168(k) bonus depreciation is real and well-established tax law applied to a Bitcoin-native workflow for the first time as a turnkey product. | Mining economics depend on hash rate and difficulty, and bonus depreciation rules can change with new legislation, so talk to your CPA before committing capital. |
👉 Archlending.com/DailyStack
Get 1% off your lowest eligible rate, exclusive for 21Rates and Daily Stack readers. Their team will get on the phone and walk you through which product fits your situation, and their customer support is the best I've experienced in Bitcoin lending.
About Arch Lending
Arch Lending is a U.S.-based digital asset lending platform offering crypto-backed loans and structured products at rates starting at 8.49% APR. All collateral is custodied through Anchorage Digital. Licensed in 40+ states, backed by Morgan Creek Digital, Castle Island Ventures, and Galaxy. For more information, visit archlending.com/DailyStack.
Disclosure: Arch Lending is a sponsor of TheDailyStack and 21Rates.com. Everything in this article reflects our honest assessment of their products. We will never publish spotlights we don't believe in. This is purely informational, not financial or tax advice. Bitcoin lending involves risk, including potential loss of collateral. Terms are subject to change, so always verify all details directly with Arch Lending