Hive Blockchain Applied sciences has printed an replace relating to the corporate’s response to the Norwegian Parliament’s current approval of a legislative invoice that may prohibit cryptocurrency miners from accessing the tax aid on electrical energy consumption out there to different power-intensive industries. The discharge criticizes the federal government’s “unilateral” transfer to droop the subsidy with out consulting with representatives of the mining trade and discusses proposed modifications to the mortgage settlement pertaining to Hive’s sole asset situated in Norway.
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Hive Criticizes Norwegian Resolution to Revoke Electrical energy Subsidies to Miners
Hive has taken purpose on the Norwegian authorities’s decision to revoke subsidies on energy consumption which are out there to energy-intensive industries working in Norway. The legislative invoice shifting to revoke cryptocurrency miners’ entry to the subsidy was handed in early December and is anticipated to take impact throughout March of this yr.
Hive states that it’s “deeply upset and annoyed” by the proposed legislative modifications, expressing its dissatisfaction with the federal government’s choice to take “unilateral” motion with out “dialogue, session, or dialogue with the trade.”
The corporate describes the invoice as comprising a “vital obstacle” to Norway’s capability to draw long-term overseas funding within the nation, warning that the invoice will deter “all energy-intensive industries” which are contemplating “long-term capital investments” from establishing operations in Norway.
Hive to Conduct Evaluation of Damages to Kolos Knowledge Heart
On account of the legislative modifications, Hive states it should conduct an evaluation of the affect of the invoice on the economics of its sole Norwegian asset, the ‘Kolos’ information heart.
On Dec. 20, 2018, Hive issued a letter to debt holders related to the Kolos acquisition proposing modifications to the mortgage settlement pertaining to the asset. The corporate is presently searching for a one yr extension of the time period of the roughly $2.four million mortgage that financed the asset’s acquisition whereas the Hive determines the affect that the legislative modifications can have on the worth and future plans for the Kolos information heart. Hive expects to have accomplished its harm evaluation previous to the top of the fiscal yr on March 31, 2019.
In November 2018, Norwegian parliamentary consultant Lars Haltbrekken criticized the subsidies out there to cryptocurrency miners, stating that Norway “can’t proceed to offer tax incentives for probably the most soiled type of cryptographic output as bitcoin.”
Do you count on that Norway will see an exodus of cryptocurrency miners in response to the legislative modifications? Share your ideas within the feedback part beneath!
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