Sweden is set to end tax incentives for data centers in July, which could be the final blow to the country’s bitcoin mining industry.
In recent years, Europe’s energy crisis has driven many bitcoin miners out of the region, but Sweden’s northernmost areas remained profitable with cheap hydroelectricity and a cool climate.
However, the upcoming tax hike from SEK 0.006 ($0.0006) to SEK 0.36 ($0.035) per kilowatt hour (kWh) is expected to halt new investment in Sweden, which currently hosts about 150 megawatts (MW) of mining.
With energy prices set to increase, the tax hike could raise the all-in energy cost to $0.093/kWh, putting some miners at a break-even point.
While Canada-based miner Hive Blockchain has 25% of its energy capacity in Sweden, the firm has not commented on the tax hike or disclosed it in any of its filings.