HIVE Blockchain Expands Bitcoin Mining Capacity Again With Purchase of 3,000 Next Generation Miners to be Operational in 60 Days to Accelerate Cash Flow

Rhea-AI Summary

HIVE Blockchain Technologies Ltd. has taken a significant step towards its 2021 ASIC capacity goal of 2,000 Petahash per second (PH/s) by acquiring 3,000 next-generation miners, increasing its projected total hash power to 1,763 PH/s by year-end.

The new miners are expected to be operational within 60 days, enhancing HIVE's Bitcoin mining capacity significantly. Additionally, the company reported approximately US $65 million in cash and coin assets, and approved the grant of stock options and RSUs to a director, subject to TSX Venture Exchange approval.

Positive

• Acquired 3,000 next-generation miners to boost capacity to 1,763 PH/s.
• Expected operational rollout of new miners within 60 days.
• Cash and coin assets reported at approximately US $65 million.

Negative

• COVID-19 impacts logistics and supply chains may delay miner delivery.
• Potential risks of not achieving the targeted hash power of 2,000 PH/s.
• Market volatility and potential decreases in cryptocurrency prices could adversely affect profitability.

VANCOUVER, BC / ACCESSWIRE / February 24, 2021 / HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (FSE:HBF) (the "Company" or "HIVE") is excited to announce that it has made a further step towards its updated 2021 ASIC capacity goal of 2,000 Petahash per second (PH/s) with the purchase of 3,000 next generation miners with an aggregate operating hash power of 90 PH/s, taking our total future capacity to 1,763 PH/s.

New Miners

With the addition of these 3,000 next generation miners, HIVE's aggregate operating hash rate from Bitcoin mining will increase to an estimated 1.763 Exahash per second (EH/s) or 1,763 PH/s by the end of 2021.

This new equipment is expected to be received and in operation in the next 60 days, delivered in 2 tranches, with 500 miners in March, and 2,500 miners in April 2021.

We remind our shareholders that the COVID-19 pandemic continues to impact logistics and the supply of miners from Asia. Today's announcement is part of our continuing strategy to increase our bitcoin mining capacity. HIVE intends to continue utilizing cash flow to make opportunistic investments in ASIC and GPU next generation mining equipment that can provide positive gross mining margins.

Option and RSU Grant

The Company announced that the Board of Directors has approved the grant of 1,000,000 incentive stock options to a director of the Company which vest over 24 months. The options are exercisable into the equivalent amount of common shares of the Company at a price of C$5.00 per share until February 23, 2031. The Company's Board has also approved the grant of 200,000 restricted share units ("RSUs") to a director of the Company which vest over 24 months. Each vested RSU entitles the holder to receive one common share of the Company. The grant of options and RSUs are subject to the approval of the TSX Venture Exchange.

Cash and coin assets are approximately US $65 million.

About HIVE Blockchain Technologies Ltd.

HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE owns state-of-the-art green energy-powered data centre facilities in Canada, Sweden, and Iceland which produce newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud. Our deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a portfolio of crypto-coins.

For more information and to register to HIVE's mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE's YouTube channel

On Behalf of HIVE Blockchain Technologies Ltd.

"Frank Holmes"

Interim Executive Chairman

For further information please contact:

Frank Holmes

Tel: (604) 664-1078

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-Looking Information

Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes information about the purchase of 3,000 next generation miners, including the expected delivery, operation and increase in operating hash rate from Bitcoin mining; the achievement of an aggregate operating hash power of 2,000 PH/s by the end of calendar 2021; the continued effects of the COVID-19 pandemic on logistics and the supply of miners from Asia; the continued utilization of cash flow to make opportunistic investments in next generation mining equipment that can provide positive gross mining margins; potential further improvements to profitability and efficiency across mining operations, potential for the Company's long-term growth, and the business goals and objectives of the Company.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the newly purchased 3,000 next generation miners may not be delivered or operation in the timeframe currently anticipated, or may not have a positive impact on the Company's profitability; the Company may not achieve an aggregate operating hash power of 2,000 PH/s in the timeframe currently anticipated, or at all; continued effects of the COVID-19 pandemic may have a material adverse effect on the Company's performance as supply chains are disrupted and prevent the Company from operating its assets; a decrease in cryptocurrency pricing, volume of transaction activity or generally, the profitability of cryptocurrency mining; further improvements to profitability and efficiency may not be realized; the digital currency market; the Company's ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; and other related risks as more fully set out in the Filing Statement of the Company and other documents disclosed under the Company's filings at www.sedar.com.

The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the current profitability in mining cryptocurrency (including pricing and volume of current transaction activity); profitable use of the Company's assets going forward; the Company's ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the ability of the Company to mine digital currencies will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

SOURCE: Hive Blockchain Technologies Ltd

View source version on accesswire.com:
https://www.accesswire.com/631600/HIVE-Blockchain-Expands-Bitcoin-Mining-Capacity-Again-With-Purchase-of-3000-Next-Generation-Miners-to-be-Operational-in-60-Days-to-Accelerate-Cash-Flow

FAQ

What is the latest update from HIVE Blockchain on their mining capacity?

HIVE Blockchain announced the purchase of 3,000 new miners, increasing its capacity to 1,763 PH/s by the end of 2021.

When will the new miners be operational for HIVE Blockchain Technologies?

The new miners are expected to be operational within 60 days, with 500 miners arriving in March and 2,500 in April 2021.

How will the COVID-19 pandemic affect HIVE Blockchain's operations?

The COVID-19 pandemic continues to impact logistics and the supply of miners from Asia, which may cause delays in operations.

What are HIVE Blockchain's current cash assets?

HIVE Blockchain reported cash and coin assets of approximately US $65 million.

What approval is needed for the stock options granted at HIVE Blockchain?

The grant of 1,000,000 stock options and 200,000 RSUs to a director is subject to approval by the TSX Venture Exchange.