Sweden’s Latest Tax Hike Spells Doom for Bitcoin Mining Industry – 248

This is the question too what happens When you just start taxing the mining Industry The six thousand percent increase in Taxes per kilowatt hour of energy May Ultimately destroy the industry in the Country Sweden the last remaining stronghold of Bitcoin miners in Europe is abolishing Tax incentives for data centers in July Potentially putting the last nail in the Coffin for the industry in the region Energy prices in Europe have spiked in The past year largely in part due to the War in Ukraine driving out Bitcoin Miners the northernmost regions of Norway and Sweden were some of the last Areas where the industry was still Profitable and operating although the Crowd had thinned out as they offer an Ideal environment for data centers cool And home to cheap hydro electricity but Not even these remote parts of Europe Remained unaffected from the energy Crisis which caused prices to increase And some miners to turn off their Operations at least partly in 2022 Energy prices started to normalize in 2023 but the upcoming tax will likely Stop any new investment in Sweden which Is currently home to about 150 megawatts Of mining the attacks will increase from SEK .006 to SEK 0.36 per kilowatt hour

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Starting July of this year according to The financial budget published in November of 2022 based on the average Electricity prices last year the tax Hike could bring the all in energy cost To 9.3 cents U.S kilo per kilowatt hour Which actually is still probably Sustainable I think in any first world Country this is probably going to end up Being like a pretty common average price For commercial power The question will be like how many Miners moved to more friendly areas for This right And what are those friendly areas and What what are we looking at this was From a senior Analyst at mining Services Firm Luxor Technologies a micro BT What's minor m30s a moderately efficient And commonly used machine would be at Break-even Point given the current Market conditions he set High blockchain A canada-based miner with 25 percent of Its energy capacity in Sweden as of the End of 2022 declined to comment on this Story coindesk couldn't find any Instance where Hive disclosed the tax Explicitly in any of its filings here's The thing though that will be funny if You're just taxing people in fiat Currency which eventually becomes Useless then it won't matter I just I thought I had run through my Head The Firm has discussed its

Disagreement with Swedish tax Authorities over 32.4 million dollars in That that thinks it that it thinks it Should recover Norway which hosts 250 to 300 megawatts of mining also increased Its taxes from .0086 cents to 1.5 cents per kilowatt Hour in January so mellorude not all Hope is lost for Norway as its energy is Overall cheaper and the tax hike is more Modest mellorude said the industry will Continue developing there said Dennis Russinovich co-founder of mining Consulting firm cryptocurrency mining Group Established in 2017 octo Miner is an International mining hardware company They manufacture and engineer the best Mining equipment in the industry and Supply rigs to some of the largest Mining farms around the world their GPU Mining rigs also integrate with the top Crypto operating systems like Hive OS Miner stat and simple mining all parts Come with an international one-year Warranty exciting news they will be Adding Asic miners for sale to their Website soon and launching a new product Built specifically for Asic home miners Please visit octominer.com or email Support octominer.com for questions Sweden's tax hike makes mining in the Region prohibitively expensive in Sweden And could ultimately destroy the

Industry South mellorude so Bitcoin Miners are looking for Solutions Many minors are looking to diversify Elsewhere as the new tax will Drastically reduce their profitability Said enter half CEO Daniel jog who Operates a site in Sweden the tax also Requires companies to pay in advance for A few months which creates some serious Cash constraints at a difficult time in The industry he said some miners could Try to get through the tax hike by Switching to self-mining instead of Hosting others machines said rasanovich Others are looking at ways to get around The tax by reusing the heat produced in The data centers such as such that they Are taxed as heat producers mellorude Said Those packing up are also facing an Uphill battle said rusanovich the market Of potential buyers has completely dried Up and there are no there are only less Than a handful of real buyers left It is unclear whether Sweden's new taxes Were intended towards miners or the Entire Data Center and Industry The Tax Act was proposed by the Swedish Ministry of Finance which also which was Also pushing for a ban on Bitcoin mining In the European Union last year melaroud Pointed out I mean you you stated that It's unclear and then made it clear Right

Quote this could be viewed as an attack On Bitcoin mining he said in 2017 Sweden Enacted a 98 tax cut for data centers Looking to attract businesses four years Later the industry hasn't created the Jobs the country was hoping for and the Macroeconomic environment has changed Said the budget report the energy crisis Has increased the electricity rates for Households and the tax cuts currently in Place might actually be taking away Energy from other more job creating Industries in the manufacturing sector Said the budget miners are disappointed By how the tax hike rolled out with what Seemed like notice or Community little Notice or communication firms like Hive Tout Sweden as a stable jurisdiction Where they don't worry about abrupt Unilateral changes in the regulatory Regime Microsoft which also operates data Centers in the region has protested the Measures abruptness particularly given That the government had commissioned a Report on the energy impact of data Centers that wasn't finished at the time Of the tax hike decision according to The budget There's been no official communication To the Bitcoin miners active in the Region only a page on the tax Authority's website that was updated to Show the change said rosanovic that plus

The fact that the tax will be Implemented in the middle of the Calendar year making it hard to plan Ahead has rub miners the wrong way Companies can request a refund for any Taxi's Levy levied before the start of July a spokesperson of the Swedish tax Agency said I mean what we are seeing Obviously is taxes being aimed towards Cryptocurrency in general it's Interesting that Microsoft is you know Basically operating a data center there And is going to push back on this what Will be curious or what will be most Interesting is if we see them rewrite That in favor of data centers similar to What Washington state did and Specifically Target cryptocurrency Mining for the tax hike I would presume that's probably Something along the lines of what we see As we watch this story develop and of Course we'll cover it on the Bitcoin Mining show every Friday evening Thanks for checking out this clip from The crypto mining show you can check out The full episode here or more crypto Content down here also I'd like you to Check out my locals page at son of a Tech.locals.com where you can become a Member for free or choose to be a five Dollar a month supporter that unlocks Additional content

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