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HIVE records $84.7 million Swedish VAT provision as BTC output hits record

The non-cash Swedish tax liability was about 40.7% of HIVE’s $208 million cash balance, and HIVE disclosed no payment timetable while interest continues to accrue.

Reported · Written up by our desk · Market Structure

HIVE Digital Technologies booked an $84.7 million non-cash Swedish tax provision tied to contested VAT exposure after adverse court rulings, following a change in its accounting assessment, according to CryptoSlate. The provision was large enough to outweigh results for the quarter, contributing to a $142.9 million GAAP net loss. During the same period, HIVE received 1,004 BTC, up 147% from 406 BTC a year earlier, and it reported $72.1 million of crypto mining revenue. CryptoSlate noted that the provision label as a current liability does not, by itself, establish that an immediate cash payment is due, and HIVE’s filings do not disclose a payment timetable. HIVE said the Swedish provision exceeded its $79.1 million quarterly revenue and equaled about 40.7% of its $208 million cash balance, framing the potential cash impact even though the amount is non-cash. The booked figure also breaks down into about $76.6 million in disputed input VAT, $1.5 million in tax supplements, and $6.6 million in interest. CryptoSlate reported that interest continues to accrue until settlement, meaning the ultimate exposure could be higher than the amount booked. HIVE applied for leave to appeal to Sweden’s Supreme Administrative Court on July 20, and while Swedish counsel assessed a favorable outcome there as remote, the company continues to dispute the assessments without reporting a later payment or a firm payment schedule in its latest filings.

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