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Hive Blockchain Tech protests the bill for the exclusion from the sale of electricity for mining encryption in Norway
The move by Norwegian Parliament pass a legislature that reduces the ministers encrypted by the access to the electricity subsidy has pushed the reaction from Hive Blockchain Technologies.
This Blockchain-oriented entity on which the operations are based Norway he protested the move by claiming that the consultations were not made as it should be. According to Hive Blockchain Technologies, the crypto industry should continue to benefit from tax relief as it does with other high-potential sectors in Norway. In a detailed version, Hive stated his position on this bill and an overview of how his activities would be affected accordingly.
Hive's criticism of the elimination of the electricity subsidy in the Norwegian mining crypt
Initially, the crypt mining industry in Norway they enjoyed subsidies similar to those offered to the energy consuming sectors in the country. Hive's reaction to the demolition of this for the crypto-miners may be somewhat justified on the basis of their business model. However, the big question remains to what extent can a legislator's change of heart influence?
In summary, Hive has expressed dissatisfaction with the legislator's decision to exclude the crypto mining from the category of subsidies. The entity used "Unilateral" to describe the decision that shows how unilateral this was.
economically, Hive argues that the bill is not favorable to FDI, in particular with the boom in the Fin Tech market led by Blockchain & Crypto. The company added that most long-term investors may be skeptical and shy about investing in such environments. This is however a hypothesis whose results can only be tested until 2019!
Hive Asset Revaluation Post The Subsidy Bill
This move by Norwegian legislature it leaves Hive no chance but to evaluate its resources as new. Since then, the company has started the process focusing on its data center in Norway "Kolos".
Hive committed its debtors with a letter in late December 2018. The content of this information was related to the acquisition of the Kolos data center in which Hive owes about $ 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 lender following the arrest of the electricity supply. The process of revaluing Hive should last for the entire first quarter of 2019.
It is highly unlikely that the Norwegian parliament will postpone the decision. This was because it was popular since November 2018 when one of the representatives claimed that the unregulated encrypted industry is a center for financial crime and should not enjoy subsidies.
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