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HomeBlockchainHIVE Blockchain Provides July 2022 Production Update

HIVE Blockchain Provides July 2022 Production Update

This news release constitutes, for purposes of the Company’s prospectus dated February 2, 2021, the “designated news release” of the amended and restated short form Base Shelf Prospectus dated January 4, 2022. To do.

VANCOUVER, British Columbia, August 5, 2022 (GLOBE NEWSWIRE) — HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (Nasdaq:HIVE) (FSE:HBFA.F) (“Company” or “HIVE”) ) As of August 4, 2022, BTC HODL balance was 3,091 Bitcoin and 6,820 Ethereum, and we are pleased to announce the production volume from our global Bitcoin and Ethereum mining operations for July 2022.

July 2022 production results

HIVE is pleased to announce production and mining capacity for July 2022.

  • 279.9 BTC production
  • 2.2 Exahash of Bitcoin mining capacity in early July
  • Bitcoin mining capacity increased to 2.26 exahash in July, and the average hashrate for Bitcoin mining capacity in July was 2.03 exahash.
  • 2,957 ETH produced*
  • 5.77 Terahash’s Ethereum Mining Capacity In early July, some miners were temporarily offline for layout optimization due to warmer summer temperatures
  • 6.49 terahash of Ethereum mining capacity at the end of July, average hash rate of Ethereum mining capacity during July was 6.19 terahash

*ETH production from our GPU mining (including selective optimization of GPU hashrate) resulted in a total ETH production of 2,957 ETH.

HIVE Executive Chairman Frank Holmes said: As of today, we are happy to say that we are producing around 10 BTC per day in addition to around 95 Ethereum per day. ”

HIVE President and COO Aydin Kilic said: Kilic continues: So his ETH that HIVE generated in his July, converted daily, is roughly equal to a total of 185.2 BTC for the month, which we call Bitcoin Equivalents or BTC Equivalents. This equates to a total of 465.1 BTC on top of the 279.9 BTC that Bitcoin mining operations produced during July. ”

Our bitcoin equivalent output for July 2022 is as follows:

  • 465.1 BTC equivalent production volume
  • Generates an average of 15.0 BTC worth per day
  • 3.77 Exahash BTC equivalent hashrate (BTC hashrate as of July 31 + equivalent ETH hashrate), average hashrate for the whole of July is 3.36 exahash BTC equivalent hashrate

Ethereum Outlook and Strategy

We acknowledge that there have been recent discussions around the potential “merging” of Ethereum into a Proof of Stake (“PoS”).

Note that no specific block of Ethereum merges has been specified with respect to the timeline to PoS. We believe it is uncertain if or when a merge will occur until a specific block is identified and universally accepted by the Ethereum Foundation. For comparison, all Bitcoin halving events are at well-defined block heights (specifically, every 210,000 blocks).

HIVE recognizes that business strategy execution may be at risk if Ethereum moves to PoS, and believes demand for GPU-based proof-of-work (“PoW”) mining will continue. . As such, we have a strategy for when a merger occurs.

HIVE believes that a widely decentralized PoW blockchain with layer 2 smart contracts has intrinsic value. Because the majority of such projects exist on the Ethereum blockchain. If an NFT and DeFi developer realizes that a secure PoW Layer 1 blockchain is the perfect venue for code-based projects, he believes that after the merge he could see an increase in Layer 2 applications on the Ethereum Classic blockchain. I have.

The company has already launched a case study, analyzing the hashrate economics of Ethereum Classic and other GPU-minable coins on an industrial scale. HIVE is also running his GPU optimizations throughout his 2022 calendar, which are unique and give the company a competitive edge.

In the event of a merger, we expect GPU mining to be more complex than ASIC mining, creating a competitive advantage that requires technical proficiency. This is why companies and hobby miners who are good at GPU optimization thrive. We expect to see more algorithm-driven applications for GPU mining that allow users to mine multiple coins. This has the lowest operational cost per hash produced, in addition to being competitive, where miners typically seek the best energy economy. GPU miners need to be innovative to maximize revenue per hash (revenue) through optimization while keeping the cost of hashes low.

The GPUs currently mining Ethereum are just one aspect of HIVE’s operations that complement its fleet of Bitcoin mining ASICs. HIVE’s GPU fleet consists of two types of cards, and the legacy fleet consists mostly of his RX580s, which can be repurposed for other GPU-minable coins. The second type is a data center grade card. Namely, his Nvidia fleet that he announced last year when he joined the Nvidia partner network. These cards have other uses in high-performance computing (HPC) applications. HIVE is developing a new platform for data center grade cards to generate new revenue streams. We foresee creating new revenue streams from GPUs, such as offering HPC services for rendering, AI, ML, molecular modeling, and more.

Electricity costs in New Brunswick

HIVE survived months of high energy prices at its New Brunswick (“NB”) data center campus. This affected all companies that are customers with interruptible energy contracts. “Historically, New Brunswick’s interruptible energy bill has been between 3.5 and 4.5 cents per KWHR, based on annual averages over the past decade,” Kilic said. HIVE also has a portion of NB’s total electrical load as fixed power, which he has around 6 cents per KWHR USD. NB’s electricity tariff based on company usage (mix of fixed and interrupted power) for the fourth quarter of fiscal year 2022 (January-March 2022) was about 12 cents per KWHR for a capacity of 46MW. Kilic continues: Considering his HIVE’s average global operating costs for electricity, data center staff, and maintenance of all facilities in Q4 2022, the total cost, based on a global average operating footprint of 114 MW, is It was about 7.5 cents per KWHR USD. US$49.8 million (as shown in our audited fiscal year 2022 financial statements), which equates to approximately $0.20 per his KWHR. The company said it was able to mine cryptocurrencies profitably during these periods, maximizing coin production.

Since then, New Brunswick’s global average operating costs for power, data center staff and maintenance have improved significantly. This is because we have enacted a strategy to avoid interruptible high electricity prices in NB. During periods of peak interruptible power. Our average electricity cost in NB for the first quarter of fiscal year 2023 (April-June 2022) was 7.4 cents per KWHR USD, averaging about 52 MW, with electricity, data center staff and and the global operating cost of maintaining all facilities is about 5.5 cents. Cents per KWHR based on a global average operating footprint of approximately 126MW.

Difficulty of network mining

Bitcoin network difficulty dropped 6.5% in July. The Ethereum network’s difficulty dropped sharply by about 20% at the end of June before rising slightly by 1.6% in July. These factors impact gross margins.

About HIVE Blockchain Technologies Ltd.

HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.

HIVE is a growth-oriented technology stock in the emerging blockchain industry. As a company whose shares are traded on major stock exchanges, we are building a bridge between the digital currency and blockchain sectors and traditional capital markets. HIVE owns state-of-the-art, green energy-powered data center facilities in Canada, Sweden, and Iceland and sources only green energy for mining on both the Ethereum and Bitcoin clouds. Since early 2021, HIVE has kept the majority of his ETH and BTC coin mining rewards in secure storage. Our shares provide investors with an operating margin for digital currency mining and exposure to a portfolio of cryptocurrencies such as ETH and BTC. As HIVE also owns hard assets such as data centers and advanced multi-purpose servers, we believe our shares offer investors an attractive way to gain exposure to the crypto space.

We encourage you to visit HIVE’s YouTube channel. here To know more about HIVE.

For more information and to subscribe to the HIVE mailing list, please visit: www.HIVEblockchain.com. follow @HIVEblockchain on Twitter subscribe HIVE YouTube Channel.

On behalf of HIVE Blockchain Technologies Ltd.
“Frank Holmes”
representative

For more information, please contact:

Frank Holmes
Phone: (604) 664-1078

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this news release.

Forward-Looking Information

Except for statements of historical fact, this news release contains “forward-looking information” within the meaning of applicable Canadian securities laws that is based on expectations, estimates and projections as of the date of this news release. . “Forward-looking information” in this news release includes, but is not limited to, our business goals and objectives. any other forward-looking information regarding the intentions, plans and future actions of the parties to the transaction and its terms herein;

Factors that could cause actual results to differ materially from those set forth in such forward-looking information include, but are not limited to, digital currency market volatility. Our ability to successfully mine digital currency. We may not be able to liquidate our current digital currency inventory favorably or at all if necessary. A significant decline in digital currency prices could have a material adverse effect on our business. Volatility in digital currency prices; the continued impact of the COVID-19 pandemic could materially and adversely affect our results of operations as it disrupts our supply chain and hinders our ability to execute our expansion plans and manage our assets. I have.Other relevant risks detailed in our registration statement and other documents disclosed in our filings www.sec.gov/EDGAR When www.sedar.com.

The forward-looking information in this news release reflects our current expectations, assumptions and/or beliefs based on information currently available to us. In connection with the forward-looking information contained in this news release, we make assumptions about our objectives, goals or future plans, timing and related matters. We also assume that no material events will occur outside of our normal course of business. Although we believe that the assumptions inherent in forward-looking information are reasonable, forward-looking information is not a guarantee of future performance.

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