Holmens Kanal was created when Christian IV extended Copenhagen's East Rampart straight through Bremerholm as part of his upgrade of the city's fortifications.

The canal lost its practical use after the naval fleet relocated to Nyholm, a newly reclaimed area north of Christianshavn on the other side of the harbour.

Holmens Kanal deteriorated into an open sewer fed by the city's extensive system of gutters and a notorious nesting ground for rats which were a menace to the adjacent Royal Theatre and other prominent buildings in the area.

In 2002 the city council decided to move the statue to a new site on the waterfront to make way for a more efficient distribution of the traffic at its busy junction.

This decision was met with severe criticism, including protests from the Royal Naval Museum, and in 2003 the Danish Heritage Agency decided to stop the move.