HIVE Faces $84.7 Million Swedish VAT Provision in Mining Dispute
HIVE Digital Technologies has taken a significant hit due to an ongoing Swedish value-added tax (VAT) dispute involving its Bitcoin mining facilities. The company recorded an $84.7 million noncash provision for the quarter ended June 30, 2026, which includes SEK 769.6 million tied to issued or proposed Swedish Tax Agency decisions and SEK 52.4 million for later periods without issued decisions.
The assessments cover decisions issued from Dec. 28, 2022, through April 27, 2026, and HIVE's subsidiaries are challenging these decisions in court. The company appealed the initial decisions in February and March 2023 and is now seeking further review of European Union legal questions at issue.
The central issue is whether the Swedish facilities provided computing capacity to identified customers or mined digital assets for HIVE's own account, which determines if the company can recover VAT paid on equipment, electricity, and other operating costs. HIVE Chief Financial Officer Darcy Daubaras stated that the provision significantly affected the company's reported net loss.