HIVE reports $84.7 million tax provision exceeding $79.1 million revenue

HIVE Digital Technologies recorded an $84.7 million non-cash Swedish tax provision related to contested VAT exposure after adverse court rulings prompted a change in accounting assessment. The provision contributed to a $142.9 million GAAP net loss despite receiving 1,004 BTC during the quarter. The tax provision surpassed HIVE's quarterly revenue of $79.1 million and represented about 40.7% of its $208 million cash balance. At Bitcoin's peak of 65,058.61 on Aug. 18, the provision equated to approximately 1,215 BTC, which is 21.5% more than HIVE's production for the quarter. HIVE reported $72.1 million in crypto mining revenue and a 147% increase in BTC received compared to the previous year. The loss also included $53.7 million in depreciation, $7.1 million in share-based compensation, and a $7.1 million derivative valuation change. The provision breaks down into approximately $76.6 million in disputed input VAT, $1.5 million in tax supplements, and $6.6 million in interest. It pertains to Swedish Tax Agency decisions totaling SEK 769.6 million, with additional amounts for later periods. HIVE applied for leave to appeal to the Supreme Administrative Court on July 20, but the likelihood of a favorable outcome is considered low. The company continues to dispute the assessments, leaving cash timing unresolved while interest accrues.