HIVE Blockchain Provides December 2022 Production Update

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This information launch constitutes a “designated information launch” for the needs of the Firm’s prospectus complement dated September 2, 2022 to its amended and restated quick type base shelf prospectus dated January 4, 2022.

Vancouver, British Columbia–(Newsfile Corp. – January 9, 2023) – HIVE Blockchain Applied sciences Ltd. (TSXV: HIVE) (Nasdaq: HIVE) (FSE: HBFA) (the “Firm” or “HIVE”) is happy to announce the manufacturing figures from the Firm’s international Bitcoin operations for the month of December 2022 and the calendar yr 2022, with 213.8 Bitcoin produced in December, plus USD $3.15 million of revenue from our power worth hedging and grid balancing technique. Moreover, the Firm produced crypto property with a price of 4,752 Bitcoin (based mostly on each day common worth of Bitcoin) in 2022, which is an 18% enhance from the prior yr.

Abstract Overview:

• HIVE produced 213.8 Bitcoin within the month of December, from ASIC and GPU mining operations, representing a median of 113.2 Bitcoin Per Exahash.
• HIVE earned USD $3.15 million in revenue from our power worth hedging and grid balancing technique, along with Bitcoin produced in December. Based mostly on the each day Bitcoin costs through the month of December, the revenue from grid balancing may equate to a mined worth of roughly 184 Bitcoin.
• HIVE’s technique to enhance its international effectivity was achieved by the agile acquisition of three,570 Bitmain S19j Professional at costs steeply discounted from the earlier yr. As well as, HIVE is happy to deploy its personal ASIC Bitcoin miner system for Proof of Work, the ‘HIVE BuzzMiner’, in partnership with Intel.
• As a tactical replace, within the final two weeks HIVE has obtained and put in over 3,400 new era Bitcoin ASIC miners within the 100 TH/s to 110 TH/s vary, which is an enormous effectivity improve which can decrease the Firm’s common value of manufacturing Bitcoin and enhance gross mining margins.
• HIVE has put in roughly 2,050 of the three,570 Bitmain S19j Professional miners introduced on December 22, 2022. These machines arrived within the final week of December, and HIVE’s crew expects all 3,570 S19j Professional miners to be put in on or round January 13, 2023. The set up of those machines contains an optimization course of to make sure HIVE has distributed and put in essentially the most environment friendly machines throughout its international working fleet, thus rising the Firm’s general common Bitcoin mining effectivity and reducing the typical Bitcoin value of manufacturing.
• Moreover, HIVE has obtained and put in 1,423 of its HIVE BuzzMiner Bitcoin miners, powered by Intel Blockscale, out of the full manufacturing amount of 5,800 HIVE BuzzMiners. These new era ASIC miners, will exchange older legacy ASIC and GPU mining tools, to extend Bitcoin mining effectivity.

December 2022 Manufacturing Figures

HIVE is happy to announce its December 2022 manufacturing figures and mining capability:

• 212 Bitcoin Produced from ASIC mining operations;
• 2.06 Exahash of Bitcoin mining capability on the finish of December, with a median hashrate of 1.89 Exahash of Bitcoin mining capability through the month of December from ASIC mining operations, with a median of 113.2 Bitcoin per Exahash;
• An extra 1.4 Bitcoin have been mined by our GPUs in December.

Frank Holmes, Govt Chairman of HIVE said, “We’re very comfortable to be producing over 213 Bitcoin this month, whereas additionally incomes over USD $3 million this month from our grid balancing and power sale initiatives. HIVE was the primary public crypto mining firm to arrange an power worth hedging and grid balancing technique. Our technique to handle risky power costs and supply a standby settlement with the utility firm has been lively for the previous couple of years in Sweden. HIVE is a key participant within the nice digital transformation wave, from being the primary public firm to mine digital property, to having a inexperienced technique, and to innovate with further income streams. Our agile management type is concentrated on being revolutionary and fast to pivot since we mine digital property which can be extraordinarily risky. Along with the European partnerships we have now, our inner technical crew has developed proprietary software program to handle our fleet of ASIC miners throughout 3 nations.”

Aydin Kilic, President & COO of HIVE famous “Moreover, our technical crew has up to date our software program stack which displays the very important statistics of our international fleet of ASIC miners. This permits us to have nice perception and granularity into the efficiency of every machine, utilizing bespoke API calls, as we rigorously research the general fleet effectivity (in Joules per Terahash), to make sure we’re mining for optimum profitability throughout a Bitcoin bear market. We proceed to try for excellence, guaranteeing that as we scale our hashrate we additionally optimize our uptime, to make sure superb Bitcoin output figures and main the sector in efficiency.”

The Firm’s complete Bitcoin manufacturing in December 2022 was:

• 213.8 BTC Produced
• 6.9 BTC produced per day on common
• 2.06 Exahash of BTC Hashrate (BTC ASIC Hashrate plus BTC GPU Hashrate) as of December 31, comprised of two.06 Exahash of BTC ASIC Hashrate and 0.0 Exahash of BTC GPU Hashrate (the GPU fleet was curtailed to earn revenue for grid balancing), with a month-to-month common of 1.89 Exahash, which is the same as 113.2 Bitcoin per Exahash.

2022 Annual Manufacturing Figures

In calendar yr 2022 HIVE mined digital property equal in worth to 4,752 Bitcoin (based mostly on the each day common Bitcoin worth; these digital property embrace 3,146 Bitcoin). This represents an 18% yr over yr enhance in digital property mined by the Firm (HIVE mined digital property equal in worth to 4,032 Bitcoin in 2021).

For the three-month interval ended December 31, 2021, HIVE produced 697 Bitcoin, or roughly 7.7 Bitcoin per day, and immediately HIVE is producing roughly 8 Bitcoin per day from ASIC manufacturing.

Whereas this seems to be a modest enhance, the Bitcoin Community Problem has surged by 46% on this one-year interval which would cut back Bitcoin manufacturing by 46% all different issues being equal.

However the foregoing, as HIVE’s international fleet of ASIC and GPU miners expanded, HIVE’s output of crypto mined with inexperienced power, outpaced the Bitcoin Community Problem enhance.

The elevated mining issue is a serious headwind to revenue margins. The one strategy to keep forward is to accumulate extra machines (to extend HIVE’s Petahash) that are additionally extra environment friendly.

The Firm has obtained 3,570 Bitmain S19j Professional miners, and 1,879 of the HIVE BuzzMiners. Moreover, 987 HIVE BuzzMiners have been shipped to Sweden, and are anticipated to reach on or round January 15. HIVE expects the entire 5,800 HIVE BuzzMiners to be manufactured, examined and shipped by the top of January 2023.

Bitcoin HODL Replace

As of immediately’s date, HIVE maintains in its treasury 2,348 Bitcoin, with a market worth of over USD $38 million.

Final quarter HIVE strategically bought Bitcoin to extend money reserves to fund opportunistic expansions within the expertise bear market. Mr. Holmes said “Now we have seen an incredible alternative to develop on this depressed market, the place ASIC costs are down virtually 90%, whereas Bitcoin worth is down roughly 70%. Buying ASICs at steeply discounted costs positions us for superb return on invested capital, and additional decreases our value of manufacturing for Bitcoin, and improves our gross mining margin within the interim bear market.”

HIVE notes that within the crypto mining sector, completely different corporations have completely different methods for HODLing or promoting Bitcoin. Some corporations could make use of a 100% HODL technique, and never promote any Bitcoin, as an alternative opting to promote shares to cowl working prices and/or capital expenditures. Different corporations could elect to promote all of their mined Bitcoin to fund working prices and/or capital expenditures. HIVE has a novel hybrid technique and will elect to promote digital property the place the Firm believes there are enticing alternatives to scale the enterprise. Our versatile HODL technique has at all times allowed us to have a core funding in digital property on HIVE’s stability sheet.

Bitcoin World Community Mining Problem Stays Risky

Community issue components are a major variable within the Firm’s gross revenue margins and may also be risky. For instance, the Bitcoin community issue was 36.95T as at December 1, and decreased to 34.24T as at December 6, then elevated to 35.36T on December 19, and remained at this degree till the top of the month. Accordingly, Bitcoin mining issue ended the month about 4.5% decrease than the start of the month.

The Bitcoin Community Problem is a publicly obtainable statistic, that displays the full variety of Bitcoin miners on-line and is necessary in analyzing an organization’s gross revenue margins, and variety of Bitcoin produced. This knowledge is on the market on many web sites, right here is one quotation: https://www.blockchain.com/explorer/charts/difficulty

As extra folks mine Bitcoin, issue will increase and conversely, as Bitcoin costs fall, many miners could lose cash, and energy down, thus taking their hashrate off the community, inflicting Community Problem to lower.

These with the bottom prices of manufacturing; by advantage of getting extra environment friendly machines and/or decrease power prices, can proceed their manufacturing throughout these risky cycles. Consequently, not all miners could constantly mine through the month, in consequence some miners will produce much less Bitcoin than anticipated, relative to their marketed hashrate.

We’re happy that we have now been capable of improve our international fleet throughout this era of turbulence amidst the “crypto contagion” with out borrowing costly excessive yield debt in opposition to our ASIC tools and digital property, whereas such costly debt has damage many Bitcoin miners throughout this bear market.

About HIVE Blockchain Applied sciences Ltd.

HIVE Blockchain Applied sciences Ltd. went public in 2017 as the primary cryptocurrency mining firm with a inexperienced power and ESG technique.

HIVE is a growth-oriented expertise inventory within the emergent blockchain business. As an organization whose shares commerce on a serious inventory change, we’re constructing a bridge between the digital foreign money and blockchain sector and conventional capital markets. HIVE owns state-of-the-art, inexperienced energy-powered knowledge centre services in Canada, Sweden, and Iceland, the place we endeavour to supply solely inexperienced power to mine digital property comparable to Bitcoin on the cloud. Because the starting of 2021, HIVE has held in safe storage nearly all of its treasury of ETH and BTC derived from mining rewards. Our shares present buyers with publicity to the working margins of digital foreign money mining, in addition to a portfolio of cryptocurrencies, primarily BTC. As a result of HIVE additionally owns arduous property comparable to knowledge facilities and superior multi-use servers, we consider our shares supply buyers a lovely strategy to acquire publicity to the cryptocurrency house.

We encourage you to go to HIVE’s YouTube channel here to study extra about HIVE.

For extra data and to register to HIVE’s mailing checklist, please go to www.HIVEblockchain.com. Comply with @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.

On Behalf of HIVE Blockchain Applied sciences Ltd.
“Frank Holmes”
Govt Chairman

For additional data please contact:
Frank Holmes
Tel: (604) 664-1078

Neither the TSX Enterprise Alternate nor its Regulation Companies Supplier (as that time period is outlined in insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of this information launch

Ahead-Wanting Info

Aside from the statements of historic reality, this information launch accommodates “forward-looking data” inside the that means of the relevant Canadian securities laws that’s based mostly on expectations, estimates and projections as on the date of this information launch. “Ahead-looking data” on this information launch contains, however isn’t restricted to, enterprise objectives and targets of the Firm; the flexibility of the Firm to adapt its operations on account of the Merge, the continued viability of its current Bitcoin Mining operations, the outcomes of the ATM Fairness Program, and different forward-looking data in regards to the intentions, plans and future actions of the events to the transactions described herein and the phrases thereon.

Components that would trigger precise outcomes to vary materially from these described in such forward-looking data embrace, however are usually not restricted to, the volatility of the digital foreign money market; the Firm’s potential to efficiently mine digital foreign money; the Firm could not be capable of profitably liquidate its present digital foreign money stock as required, or in any respect; a cloth decline in digital foreign money costs could have a major damaging affect on the Firm’s operations; the volatility of digital foreign money costs; continued results of the COVID-19 pandemic could have a cloth antagonistic impact on the Firm’s efficiency as provide chains are disrupted and stop the Firm from finishing up its enlargement plans or working its property; and different associated dangers as extra totally set out within the registration assertion of Firm and different paperwork disclosed below the Firm’s filings at www.sec.gov/EDGAR and www.sedar.com.

The forward-looking data on this information launch displays the present expectations, assumptions and/or beliefs of the Firm based mostly on data presently obtainable to the Firm. In reference to the forward-looking data contained on this information launch, the Firm has made assumptions concerning the Firm’s targets, objectives or future plans, the timing thereof and associated issues. The Firm has additionally assumed that no important occasions happen outdoors of the Firm’s regular course of enterprise. Though the Firm believes that the assumptions inherent within the forward-looking data are cheap, forward-looking data isn’t a assure of future efficiency and accordingly undue reliance shouldn’t be placed on such data as a result of inherent uncertainty therein. The Firm disclaims any intention or obligation to replace or revise any forward-looking data, whether or not on account of new data, future occasions or in any other case, aside from as required by legislation.

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