HIVE sells Norwegian subsidiary after electricity subsidies are cancelled

The Toronto-listed mining company HIVE Blockchain Technologies sold the Norwegian subsidiary Kolos Norway AS to the local municipality of Narvik.

According to the press release, in November 2018 the government of Norway cancelled electricity subsidies provided to mining centres. Due to the legislative changes, the company deemed the project unprofitable.

Under the terms of the agreement, HIVE Blockchain Technologies transferred all shares of Kolos to the municipality and paid $200,000. This will allow it to focus on data centres located in Iceland and Sweden.

The firm settled all obligations undertaken under the initial deal. The rights relating to development of the Kolos Norway AS land parcel have been cancelled.

HIVE Blockchain has focused primarily on Ethereum mining. In December 2020, it turned a profit thanks to the rise in the price of the second-largest cryptocurrency by market capitalization.

In January, the company acquired 6400 Avalonminer 1246 ASIC miners from the Chinese manufacturer Canaan, with delivery expected by the end of 2021.

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