Crypto mining company HIVE Blockchain Technologies has sold one of the data centers in the Norwegian municipality of Narvik, which it previously served since 2018.
In Monday’s announcement, HIVE announced that it had transferred to Narvik all of the shares in its local subsidiary, Kolos Norway AS, and also paid out $ 200,000. This measure was taken after the Norwegian Parliament approved a bill in December 2018 that does not provide relief for cryptographic memory workers with regard to energy consumption.
The mining company said that it is “unlikely that [HIVE] will be more able to meet the conditions for development” due to legislation that has been in effect since 2019. According to HIVE, the law actually reduced the value of the land. development rights from $ 15 million to zero.
Frank Holmes, CEO of HIVE, described the sale as “unsuccessful,” but agreed that the community will continue to look for ways to use the property.
“This agreement was signed before I or our CFO took over leadership roles,” Holmes said. “We are delighted that the management team can now continue to focus on more pressing needs such as upgrading our existing facilities while expanding our existing operations in Sweden, Iceland and Canada.”
HIVE, a large ether (ETH) mining company, announced a two-phase plan to expand its mining operations in Sweden by more than 20% in the first quarter of 2020. In March 2020, the company acquired a new facility in Quebec for $ 2.8 million, doubling its global production capacity at the time.