Finst

Sweden hikes taxes on Bitcoin mining

A rise in energy-use taxes in the country will probably spell the end for the remaining Bitcoin miners in Sweden.

By Mike Hesp
• 1 min read
Sweden hikes taxes on Bitcoin mining

An increase in energy-use taxes in the country will probably spell the end for the remaining Bitcoin miners in Sweden.

The country of Sweden wants to end the energy-use tax breaks for data centers starting in July. That’s laid out in a state budget plan for 2023. Taxes on energy use are set to rise from 0.006 Swedish kronor (SEK) to 0.36 SEK per kWh. That’s an increase of more than 6,000%.

With the hike, Europe’s Bitcoin mining industry is likely to run into more trouble. The sector was already under pressure last year from big jumps in energy prices.

Scandinavia had been a last stronghold for miners in Europe thanks to still-favorable energy-tax terms. Now they could look for other locations outside the continent.

Canadian mining firm Hive Blockchain (HIVE) would also be hit by the tax increase. According to a 2022 quarterly report, HIVE uses about 25% of its capacity in Sweden.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.