During his attempt to overthrow Odin and take over as the king of Asgard, Imir, knowing that Thor would attempt to use Mjølnir against him, forced the Dwarves to craft him a specialized axe that could match the strength of the hammer. When Thor arrived to prevent Imir's schemes, he used the axe to block Mjølnir from hitting him. Imir then utilized the axe's secondary power of being able to cut through the fabric of reality to teleport and escape Thor's attacks, attacking him back by hitting him in the back of the head with the handle of the axe. However, Thor was able to defeat Imir by using Mjølnir to direct lightning through the chimney of the Golden Forge, knocking Imir unconscious and causing him to drop the axe.
Imir's Axe was designed to be strong enough to resist an impact from Mjølnir, with a hit from the axe being able to send the hammer flying away in the opposite direction from which it was thrown. The axe was also able to cut through the fabric of reality, enabling Imir to hide in an alternate dimension and to enter back into reality wherever he wanted. This allowed Imir to attack his enemies without them being able to retaliate in time.