Crypto Miner Hive Blockchain Sells Norwegian Unit After Country Removes Power Subsidy

Hive said it would likely not be able to meet the development conditions for the project without tax relief on electricity.

AccessTimeIconMay 10, 2021 at 12:48 p.m. UTC
Updated Sep 14, 2021 at 12:52 p.m. UTC

Hive Blockchain Technologies (HVBTF), a publicly traded Canadian-based crypto mining company, has sold its Norwegian subsidiary, Kolos Norway AS, to the local municipality of Narvik.

Under the deal, Hive transferred all shares of the unit to the Narvik municipality along with a $200,000 payment.

The company cites the Norwegian government's scrapping of a tax subsidy on electricity that was granted to crypto miners as a reason for the move.

This meant that it was improbable that Hive would be able to meet the development conditions of “this greenfield project,” according to an announcement by the company Monday. The land development rights were therefore impaired and written down to a zero valuation from $15 million in March 2019.

Hive Executive Chairman Frank Holmes described the situation as “unfortunate,” adding that the deal was made before he and Darcy Daubaras, the company’s chief financial officer, assumed their roles. 

The company now plans to focus its mining operations on data centers in Sweden and Iceland, which mine ethereum continuously on the cloud, according to the announcement. Hive has also been ramping up its bitcoin mining operations with the purchase of more mining machines.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Bitcoin Holds Above $21K in Weekend Trading; Solana Web3 Phone Faces Long Odds

Ether stays over $1,200; prior blockchain phones have failed because the market has realized their functionalities are already available via apps that can be loaded onto any old phone.

CoinDesk - Unknown
2
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
3
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
4
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown