HIVE Blockchain (HIVE) Delivers Shareholder Meeting Results, Acquires New Bitmain S19j Pro Miners

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HIVE Blockchain Technologies Ltd. (Nasdaq: HIVE) is pleased to announce that all resolutions considered at its 2022 Annual Meeting of Shareholders on December 20, 2022 were approved by shareholders. The company also provides a corporate update for the third quarter ending December 31, 2022.

Shareholders approve resolutions

The resolutions approved by the shareholders who were present in person or represented by proxy at the meeting were:

• All nominated board members were duly elected or re-elected to HIVE’s board. HIVE’s board consists of Frank Holmes, Marcus New, Dave Perrill, Ian Mann and Susan McGee. Each director will serve until HIVE’s next annual meeting of shareholders or until their respective successors are elected or appointed or they otherwise cease to hold office.

• Davidson & Company LLP was re-elected as the independent external auditor of HIVE for the following year or until the successor is appointed, and the board was authorized to determine the remuneration.
• The company’s stock option plan was reapproved.

The resolutions voted on at the meeting are described in more detail in HIVE’s governance information circular, dated November 10, 2022, which was sent to shareholders and is available on SEDAR at www.sedar.com.

Company update

HIVE upgrades the energy efficiency of its ASIC mining fleet

HIVE is pleased to announce additional strategic acquisitions of Bitmain Antminer S19j Pro ASIC miners at opportunistic $ per Terahash prices:

• the purchase of 1540 S19j Pro miners, at an average hash rate of 104 TH/s, expected to produce over 159 PH/s
• the purchase of 100 S19j Pro miners, at an average hash rate of 98 TH/s, expected to produce over 9 PH/s
• The company notes that these purchases follow the 1,930 S19j Pro miners, which were recently announced to generate over 185 PH/s
• In total, HIVE’s recent strategic purchase of 3570 S19j Pro miners is expected to add over 355 PH/s of highly efficient Bitcoin mining hashrate, with a rated efficiency of 29.5 J/TH

Better Joule per Terahash (J/TH) energy efficiency in Bitcoin mining reduces the amount of energy consumed per hash. By investing in machines with a low $ per TH acquisition price, the company can realize a better cash flow return on invested capital, while improving the Bitcoin break even production price for its global fleet, to navigate the current crypto mining economy.

HIVE has also received 420 HIVE BuzzMiners in Sweden, which have been installed, in addition to the 262 HIVE BuzzMiners operating in New Brunswick, bringing the current operating total to 682 HIVE BuzzMiners, which have a nominal production capacity of 75 PH/s. The total production of HIVE BuzzMiners will be 5,800 units, which are expected to produce 638 PH/s.

HIVE’s fleet of 9,370 new generation Bitcoin ASIC miners, in the 30 J/TH range, is expected to produce over 990 PH/s of highly efficient Bitcoin mining capacity. These machines will upgrade existing machines within HIVE’s global operating fleet, replacing older machines, some of which have been mining since 2018 and 2020. The company expects these 9,370 machines to be delivered and deployed within existing operating infrastructure by the end of January 2023.

This upgrade is expected to increase HIVE’s overall global Bitcoin production capacity by approximately 20%, within the same electrical infrastructure operational footprint. In reality, this upgrade is therefore expected to reduce the average production price by around 20%.

Evidence of progress in the work industry

The company notes that with the advent of technological innovations in Bitcoin’s proof-of-work ecosystem, we have seen energy consumption drop by 67% since the Bitmain Antminer S9 was the most widely used Bitcoin miner in the 2018/2019 era. The S9 had an efficiency of 90 to 98 J/TH, while today’s S19j Pro has an efficiency that uses 1/3 of the average energy per terahash compared to an S9.

As more processing power secures the Bitcoin blockchain, which has stood the test of time as an immutable distributed ledger, the industry is striving to make this process more energy efficient.

The 9,370 new generation ASICs that HIVE is installing represent approximately 30 MW of power, to strategically maximize the output of HIVE’s global Bitcoin production.