Hive states that it is “deeply disappointed and frustrated” by the proposed legislative changes, expressing its dissatisfaction with the government’s decision to take “unilateral” action without “discussion, consultation, or dialogue with the industry.”
The company describes the bill as comprising a “significant impediment” to Norway’s capacity to attract long-term foreign investment in the country, warning that the bill will deter “all energy-intensive industries” that are considering “long-term capital investments” from establishing operations in Norway.
On Dec. 20, 2018, Hive issued a letter to debt holders associated with the Kolos acquisition proposing changes to the loan agreement pertaining to the asset. The company is currently seeking a one year extension of the term of the approximately $2.4 million loan that financed the asset’s acquisition while the Hive determines the impact that the legislative changes will have on the value and future plans for the Kolos data center. Hive expects to have completed its damage assessment prior to the end of the fiscal year on March 31, 2019.
In November 2018, Norwegian parliamentary representative Lars Haltbrekken criticized the subsidies available to cryptocurrency miners, stating that Norway “cannot continue to provide tax incentives for the most dirty form of cryptographic output as bitcoin.”
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