HIVE Digital Technologies disclosed an $84.7 million non-cash Swedish tax provision in its fiscal first-quarter 2027 results, tied to contested VAT exposure after adverse court rulings forced a change in its accounting assessment. The charge exceeded the company’s $79.1 million quarterly revenue and equaled about 40.7% of its $208 million cash balance, overshadowing a quarter in which HIVE received 1,004 BTC, up 147% from 406 BTC a year earlier.
According to the SEC filing, the provision includes about $76.6 million in disputed input VAT, $1.5 million in tax supplements, and $6.6 million in interest. It covers Swedish Tax Agency decisions or proposed decisions totaling SEK 769.6 million, plus SEK 52.4 million for later periods through June 30 that involve the same facts. The company reported a $142.9 million GAAP net loss, also reflecting $53.7 million of depreciation, $7.1 million of share-based compensation, and a $7.1 million derivative valuation change.
HIVE has applied for leave to appeal to the Supreme Administrative Court on July 20, but its Swedish counsel assessed the chance of a favorable outcome as remote. Interest continues to accrue until settlement, so ultimate exposure may be higher. At Bitcoin’s Aug. 18 intraday high of $65,058.61, the provision equaled roughly 1,215 BTC, or 21.5% more than HIVE produced during the quarter. The current-liability classification does not establish that an immediate cash payment is due, and HIVE’s latest filing does not disclose a payment timetable.
