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HIVE Blockchain criticizes the new Norwegian mine regulation
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HIVE Blockchain Technologies Ltd. provided an update regarding the company's response to the recent regulatory changes proposed by the Norwegian Parliament.
Last month, the Norwegian Parliament approved a bill that cryptocurrency miners will no longer be subject to tax cuts on energy consumption at the same rate as other energy-intensive sectors. This change, which is included in the state budget for 2019, should come into force in March of this year.
In a press release, HIVE, which acquired Kolos Norway AS in May 2017 to build a gigantic data center in Ballangen, Nordland, said it was deeply disappointed and frustrated by the proposed changes to the framework conditions of the government without discussion, consultation or dialogue with l & # 39; industry. According to the company, the bill represents a significant obstacle to attracting long-term foreign investments in the region and creates uncertainty for other global investors.
"Such changes pose a risk not only for cryptocurrency miners but for all energy-intensive industries that are considering long-term capital investments as political forces seem intent on unilaterally proposing changes to consolidated frameworks that have attracted investment. in the area".
Following the imminent changes, HIVE is now assessing the feasibility of its presence in the country. Hive said he had issued a letter last month to the debt holders associated with the acquisition of Kolos who proposed changes to the loan contract related to the asset. The company has proposed to extend by one year the duration of the NOR 20,885,000 convertible loan ($ 2.4M USD) as the management assesses the impact that the changes proposed by the Norwegian parliament could have on future development plans and on the value of the only Norwegian resource of HIVE.
Frank Holmes, interim executive president HIVE, said that regulatory uncertainty is a significant obstacle to attracting long-term foreign capital and that unexpectedly moving target positions create an unfavorable investment environment.
"These abrupt regulatory changes have forced us to reevaluate the value of our heritage in Norway which, prior to the proposed change, represented an attractive opportunity in the green field to develop data centers to serve the global technology community and the potential to erect cryptocurrency Mining infrastructure gave access to more than 1,000 megawatts of property power, "said Homes. "HIVE will evaluate the feasibility of our presence in Norway as liquidity management remains a priority that we consider to be in the best interests of HIVE's capital holders".
