Sweden hits crypto miners with $56 million in tax penalties

Skatteverket, the Swedish Tax Agency, intensified its scrutiny of the sector following a review of operations conducted between 2024 and 2026. According to Patrik Lillqvist, the agency’s head of intelligence, these firms utilized specific arrangements to obscure the nature of their work, essentially draining state revenue through prohibited tax advantages. Lillqvist characterized the practice as an exploitation of local communities, stating that the companies effectively stole from the public purse.

Bikupan Datacenter remains the most prominent entity fighting the ruling, having escalated its challenge to Sweden’s Supreme Administrative Court. The company, linked to HIVE Digital Technologies, argues that its historical operations did not constitute mining but rather the sale of computing power to external pools. Johanna Törnblad, CEO of Bikupan, maintains that the agency’s assessment is flawed, even as the company undergoes corporate restructuring due to debt. While lower courts have largely sided with the tax authority, the ongoing legal battle highlights a broader tension between Swedish regulators and the energy-intensive crypto industry, which has increasingly pivoted toward artificial intelligence infrastructure to diversify its revenue streams.