Hive Blockchain Tech Protests Electricity Subsidy Exclusion Bill For Crypto Mining In Norway
The move by Norwegian parliament to pass a legislature curtailing crypto miners from accessing electricity subsidy has spiked reaction from Hive Blockchain Technologies.
This Blockchain-oriented entity whose operations are based in Norway protested the move arguing that consultations were not done as should be. According to Hive Blockchain Technologies, the crypto industry ought to continue enjoying a tax relief as is with other high powered sectors in Norway. In a detailed release, Hive has stated its position on this legislative bill as well as an overview of how its assets would be affected as a result.
Hive’s Criticism On Electricity Subsidy Exclusion In Norway’s Crypto Mining
Initially, the crypto mining industry in Norway enjoyed similar subsidies as those given to power consuming sectors in the country. Hive’s reaction towards scrapping this off for crypto miners may somewhat be justified based on their business model. However, the big question remains to what extent can they influence a change of heart by the legislature?
In summary, Hive has expressed discontent in the legislature decision to exclude crypto mining from subsidies category. The entity used ‘Unilateral’ to describe the decision showing how one sided this consensus was.
Economically, Hive claims that the bill is not FDI friendly especially with the booming Fin Tech market driven by Blockchain & Crypto. The company added that most long-term investors may be skeptical and shy away from investing in such environments. This is however a hypothesis whose results can only be tested well into 2019!
Hive Asset Revaluation Post The Subsidy Bill
This move by Norway’s legislature leaves Hive no option but to value its assets a fresh. The firm has since initiated the process with a focus on its Norwegian based data centre ‘Kolos’.
Hive engaged its debt bearers via a letter towards the end of December 2018. The content of this piece of information was related to Kolos data centre acquisition in which Hive owes almost $2.4 million (proceeds for financing). In the letter, Hive seeks an extension of 12 months to facilitate the terms of its contract with the financier following the electricity subsidy setback. Hive’s revaluation process is expected to last through the whole of Q1 in 2019.
It is highly unlikely that the Norwegian parliament will revert the decision. This is because it was popular as early as November 2018 when one of the representatives argued the unregulated crypto industry is a hub for financial crime & should not enjoy subsidies.