- Under a share purchase agreement, Hive transferred all shares of Kolos Norway AS, along with $200,000 to the local municipality of Narvik.
- After the Norwegian government canceled the power subsidy, management concluded it wouldn’t be able to meet the development conditions.
- The deal was made before Frank Holmes or Darcy Daubaras had assumed executive duties at Hive.
The publicly-traded Canadian crypto mining firm, Hive Blockchain Technologies (HVBTF), recently sold its Norwegian subsidiary, Kolos Norway AS, to the local municipality of Narvik.
Hive’s Share Purchase Agreement
Along with all shares of the Norwegian unit, the deal also had Hive transfer payment of $200,000 to the Narvik municipality, reported CoinDesk on Monday. The move succeeded the Norwegian government in canceling the electricity tax subsidy granted to the crypto miners in early December 2018.
Explaining the situation, Hive made an announcement on Monday, citing:
“As a result of this legislative change and the uncertainty around the development of this greenfield project, management concluded that it was no longer probable that the Company will be able to meet the development conditions. As a result, the land development rights were impaired and were written down to $nil from $15 million as of March 31, 2019.”
Hive Executive Chairman Frank Holmes felt bittersweet; on the one hand, he was “glad that the property has been retained by the local community,” which can now develop the “greenfield property for many uses,” yet he also felt “unfortunate that it has come to this.” The deal was made before Holmes or Darcy Daubaras, Hive’s chief financial officer, had assumed executive duties.
Hive’s New Goals
The crypto-mining firm will now be focusing its operations on data centers in Sweden and Iceland that deal with Ethereum mining (ETH) continuously on the cloud. Additionally, with the purchase of more mining machines, Hive is also leveling up its Bitcoin (BTC) mining operations.