HIVE Blockchain Technologies Announces Growth Plan to 6 EH/S, Establishes At-The-Market Equity Program by Investing.com

This press release constitutes a “designated news release” for purposes of the Company’s prospectus supplement dated May 10, 2023 to the short form base shelf prospectus dated May 1, 2023.

HIVE Blockchain Technologies Ltd. (NASDAQ:) is pleased to announce its updated growth target of 6 Exahash per second (“EH/s”) (all amounts in US dollars, unless otherwise stated).

HIVE’s short-term target is 4 Exahash for calendar Q2 2023 through secured orders of 1.26 Exahash from the new generation of Bitcoin mining ASICs, to increase our target hashrate by 33%. HIVE’s management team has carefully evaluated ASIC purchase opportunities, deployed capital for orders that will provide optimal cash flow returns on invested capital, while introducing more efficient machines to our global fleet.

Instant Growth Overview:

• Over 1.26 Exahash of new generation Bitcoin ASIC miners at very attractive $/TH prices:
  • Bought 3600 Bitmain S19j Pro+ miners for a total of 439 PH/s
  • Bought 1,169 Bitmain S19j Pro miners for a total of 117 PH/s
  • Bought 1100 Bitmain S19 XP miners for a total of 154 PH/s
  • Launched production of 5000 BuzzMiner Plus units, for a total of 550-650 PH/s

Strategic insight:

HIVE has successfully leveraged and continues to optimize its hybrid strategy for expansion, to opportunistically sell Bitcoin when appropriate to do so, or issue shares to increase our Bitcoin HODL position. HIVE’s approach to maximizing cash flow return on invested capital has allowed us to minimize shareholder dilution while maintaining a strong Bitcoin HODL balance sheet.

The company notes that other publicly traded Bitcoin miners can only issue shares to finance their operations and expansions, in order to HODL all their Bitcoin. While other miners may sell all Bitcoin HODL to fund their business or expansions.

Appointment of Luke Rossy as Vice President of Operations

HIVE is pleased to announce the appointment of Luke Rossy to the position of Vice President of Operations. Luke has been with HIVE for the past two years, as our Senior Developer & Operations Manager, where he has been a tremendous asset, and eager to learn.

Luke has demonstrated an ability to solve problems in the technical area, along with his expert level analytical skills. Expanding his horizons and taking on more leadership-level responsibilities, we are excited to see Luke grow with the company.

Aydin Kilic, CEO of HIVE Blockchain stated: “I have worked very closely with Luke over the past 2 years, he has been an exceptional team member, with incredible focus and a tireless work ethic. I believe he will be a great leader and as we have a lean leadership team at HIVE, his diverse skillset helps us navigate everyday obstacles as we strive for excellence.”

ATM financing to accelerate growth strategy and build HODL position

The Company is also pleased to announce that it has entered into an Equity Distribution (the “Share distribution agreement“) with Stifel GMP (“Stifel“) and Canaccord Genuity Corp. (“Canaccord“and together with Stifel,Agents“) to establish an offer on the market of ordinary shares (“Common shares“) in the Company’s capital at the facilities of the TSX Venture Exchange (“TSXV“).

Frank Holmes, Executive Chairman of HIVE commented: “I am thrilled that this is the first time that two large independent brokers in Canada are partnering with us on an ATM financing. This financing will allow us to increase our Bitcoin HODL and Exahash mining capacity.”

The company estimates that with every additional 30MW of infrastructure, using ASICs with an efficiency of 30 J/TH, it will be able to add 1 Exahash of Bitcoin mining capacity, at an approximate cost of $30,000,000. Therefore, given the right opportunities, the proceeds from the ATM funding could potentially enable the company to add another 3 Exahash to its operational footprint, including infrastructure and ASICs. This will represent approximately 100% growth to the company’s current ASIC operating capacity of 3.15 Exahash, to reach its growth target of 6 Exahash.

By introducing machines with better joule per Terahash (“J/TH”) efficiency, while acquiring these machines at an attractive $/TH price, we strive to optimize the short-term payback of our investments from cash flow operating these machines. Furthermore, we analyze possible scenarios where mining revenues may fall in the time periods around the halving event, and thus we strive for the machines we buy to have positive gross margins for as long as possible after the initial investment has been paid off. . Therefore, an optimal balance must be sought between realized J/TH efficiency and paid $/TH price. Our goal is for these investments to become free cash flow generating assets, to get the best cash flow return on invested capital as a listed Bitcoin miner.

Pursuant to the Stock Distribution Agreement, the Company may from time to time sell up to $100 million of Common Stock (the “ATM Equity Program“). The Company intends to use the net proceeds from the ATM Equity Program, if any, principally for general corporate and working capital requirements, financing ongoing operations, to repay outstanding indebtedness from time to time, to complete future acquisitions, or for other business purposes.

The common shares will be distributed at trading prices applicable at the time of sale, prices may vary between buyers and during the distribution period. The volume and timing of sales, if any, will be determined at the sole discretion of the Company’s management and in accordance with the terms of the Share Distribution Agreement. To date, no common shares have been distributed by the Company pursuant to the Share Distribution Agreement. Sales of common stock, if any, under the ATM Equity Program are expected to be made in transactions deemed to be “at-the-market distributions” as defined in National Instrument 44-102 – Shelf distributionsas sales directly on the TSXV or another recognized Canadian “market place” pursuant to National Instrument 21-101 – Marketplace operation. The ATM Equity Program is created pursuant to a prospectus supplement dated May 10, 2023 (the “Prospectus supplement“) to the Company’s short-form base shelf prospectus dated May 1, 2023 (the “Prospectus for base shelf“), filed with the securities regulatory authorities of each of the provinces and territories of Canada.

The prospectus supplement (as well as the related base shelf prospectus) is available on the company’s profile on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or in any jurisdiction where the offer, sale or solicitation would be illegal. The common shares referred to in this press release may not be offered or sold in the United States without registration or an applicable exemption from registration.