HIVE books $84.7M Swedish VAT provision, tops revenue

HIVE Digital Technologies recognized an $84.7 million non‑cash Swedish VAT provision in the quarter, according to company filings. The provision exceeded quarterly revenue of $79.1 million and represented about 40.7% of HIVE’s $208 million cash balance. HIVE reported receiving a record 1,004 BTC during the quarter, up from 406 BTC a year earlier.

The provision followed adverse court rulings that led HIVE to change its accounting assessment of contested VAT exposure in Sweden. It covers SEK 769.6 million in Swedish Tax Agency decisions or proposed decisions, plus SEK 52.4 million for later periods through June 30 that involve the same facts. The filings break the provision into roughly $76.6 million of disputed input VAT, $1.5 million of tax supplements and $6.6 million of interest.

HIVE recorded $72.1 million in crypto mining revenue and $79.1 million in total revenue for the quarter. At bitcoin’s intraday high on Aug. 18, the $84.7 million provision would have equated to about 1,215 BTC, roughly 21.5% more than the company produced in the quarter.

The VAT reserve was a primary factor in a $142.9 million GAAP net loss for the period. Other items listed in the filings include $53.7 million of depreciation, $7.1 million of share‑based compensation and a $7.1 million derivative valuation change. The provision is recorded as a current liability; the filings note that classification does not necessarily mean an immediate cash payment is due.

HIVE applied for leave to appeal to Sweden’s Supreme Administrative Court on July 20. Swedish counsel assessed the prospect of a favorable outcome there as remote. Filings state the company continues to dispute the assessments and do not disclose a payment timetable, whether security has been posted, or whether any portion has been paid. Interest will continue to accrue on the underlying amounts until settlement, which could leave the ultimate exposure higher than the booked figure.

Swedish tax guidance distinguishes mining or verification activities without identifiable counterparties from supplying external compute capacity for fixed consideration. The filings note that prior guidance and a January advance ruling are not rulings on HIVE’s specific facts and that recognizing the provision did not resolve the underlying dispute with the Swedish Tax Agency.

HIVE’s March 31 annual filing noted a separately demanded SEK 84 million tranche, about $9.4 million at the time, remained unpaid as of that date. The latest quarterly disclosure expands the total provision but does not indicate any contested assessments have been settled or that a firm payment schedule has been agreed.