HIVE Blockchain Reports Record Quarterly Revenue and Cash Flow, with Operating Income of $9 Million, in Second Quarter F2021

VANCOUVER, BC / ACCESSWIRE / November 30, 2020 / HIVE Blockchain Applied sciences Ltd. (TSX.V:HIVE)(OTCQX:HVBTF)(FSE: HBF) (the “Firm” or “HIVE”) pronounces its outcomes for the second quarter ended September 30, 2020 (all quantities in US {dollars}, until in any other case indicated).

Income from digital forex mining was $13.Zero million, an 8% enhance from the identical quarter final 12 months. File money move of $10.6 million, up considerably from a lack of $4.6 a 12 months earlier. Gross mining margin expanded to $9.2 million, from a lack of greater than $560,000 final 12 months. Internet revenue per share grew to $0.03 from a lack of $0.04 throughout the interval ended September 30.

“I am thrilled to see how nicely HIVE has accomplished since we settled all disputes with Genesis Mining in June 2019,” feedback Frank Holmes, Interim Govt Chairman of HIVE. “We have been in a position to drive down prices, which has led to the best money move in anyone quarter since HIVE went public three years in the past. This, coupled with increased Ethereum and crypto costs, implies that the Firm is doing higher now than ever earlier than.

“2020 has been marked by wholesome enlargement in mining capability, the newest instance being HIVE’s potential acquisition of a knowledge middle campus in Grand Falls, New Brunswick, that may give the corporate entry to a further 50 megawatts (MW) of low-cost inexperienced vitality. Moreover, we not too long ago locked in 50% of our vitality prices for calendar 2021 at 1.6 cents per kilowatt hour in Sweden. This knowledge level is likely one of the lowest within the blockchain mining ecosystem in addition to in inexperienced vitality.

“As we defined again in September of this 12 months, the Firm produced a record number of Ethereum coins via the continued sturdy utilization of the blockchain community, notably decentralized finance (“DeFi”) functions. Within the quarter ended September 30, HIVE mined over 32,800 Ethereum and 88,300 Ethereum Basic cash. This represents a big enhance from the 25,000 Ethereum mined within the earlier quarter, and a greater than 50% enhance in comparison with the identical interval final 12 months.”

“HIVE is the one public crypto mining firm producing Ethereum on an industrial scale, sourcing inexperienced vitality from amenities in Sweden and Iceland. With the explosion in DeFi, which has elevated the demand for Ethereum, and now the debut of Ethereum 2.0, which can shrink the availability of Ethereum, we’re in a really engaging place,” continues Mr. Holmes.

Q2 F2021 Highlights

• Generated revenue from digital forex mining of $13.Zero million, a rise of 8.2% year-over-year
• Generated gross mining margin[1] of $9.2 million, or 71% of revenue from digital currencies
• Mining output of newly minted digital currencies:

• 32,800 Ethereum
• 88,300 Ethereum Basic
• 89 Bitcoin

• Generated Adjusted EBITDA¹ of $10.6 million, a big enhance from a lack of $4.6 million a 12 months earlier
• Generated internet revenue of $9.2 million for the interval, or $0.03 per share, in comparison with a lack of $11.5 million, or $0.04 per share, final 12 months
• Internet money much less loans payables of $1.7 million plus digital currencies property of $10.7 million, as at September 30, 2020
• Working capital was $20.9 million as at September 30, 2020

Q2 F2021 Monetary Assessment

For the three months ended September 30, 2020, revenue from digital forex mining was $13.Zero million, a rise of 8.2% from the prior comparative quarter. The rise was primarily as a consequence of an elevated variety of Ethereum cash mined throughout the present quarter and a realization of upper common Ethereum costs than the prior comparative quarter.

Gross mining margin¹ throughout the quarter was $9.2 million, or 71% of revenue from digital forex mining, in comparison with a lack of $563,839, or 5% of revenue from digital forex mining, in the identical interval within the prior 12 months.

Internet revenue throughout the quarter ended September 30 was $9.2 million, or $0.03 per share, in comparison with a lack of $11.5 million, or $0.04 per share, within the prior 12 months interval. The rise was primarily as a consequence of a big discount of operational prices skilled because the Firm has shifted from the previous service supplier over the previous 12 months.

1. Non-IFRS measure. A reconciliation to its nearest IFRS measures is supplied below “Reconciliations of Non-IFRS Monetary Efficiency Measures” within the Firm’s MD&A.
2. Revaluation is calculated because the change in worth (acquire or loss) on the coin stock. When cash are offered, the online distinction between the proceeds and the carrying worth of the digital forex (together with the revaluation), is recorded as a acquire (loss) on the sale of digital currencies

­Monetary Statements and MD&A

­The Firm’s Condensed Interim Consolidated Monetary Statements and Administration’s Dialogue and Evaluation (MD&A) thereon for the three and 6 months ended September 30, 2020 will likely be accessible on SEDAR at www.sedar.com below HIVE’s profile, and on the Firm’s web site at www.HIVEblockchain.com.

Webcast Particulars

Administration will host a webcast on Tuesday, December 1, 2020 at 10:00 am Jap Time to debate the Firm’s monetary outcomes. Presenting on the webcast will likely be Frank Holmes, Interim Govt Chairman, Tobias Ebel, HIVE Director and Darcy Daubaras, Chief Monetary Officer. IMPORTANT – Click on here to register for the webcast. The direct hyperlink is https://us02web.zoom.us/webinar/register/5016067617624/WN_D7CDFKAtRh6M1b3XxpILIA.

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

On Behalf of HIVE Blockchain Applied sciences Ltd.

“Frank Holmes”

Interim Govt Chairman

For additional data please contact:

Frank Holmes
Tel: (604) 664-1078

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

Ahead-Wanting Info

Apart from the statements of historic reality, this information launch comprises “forward-looking data” throughout the which 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 details about the Firm’s continued improve and enlargement efforts; the potential for the Firm’s long run development; the enterprise targets and targets of the Firm, and different forward-looking data contains however is just not restricted to data regarding the intentions, plans and future actions of the events to the transactions described herein and the phrases thereon.

Elements that might trigger precise outcomes to vary materially from these described in such forward-looking data, and probably result in materials antagonistic results on the Firm’s operations and outcomes embody, however aren’t restricted to, additional enhancements to the Firm’s profitability and effectivity is probably not realized as presently anticipated, or in any respect; beneficial elements (comparable to discount in vitality prices and rising Ethereum costs and DeFi functions) could not proceed; the consequences of COVID-19 on world provide chains, together with elevated delivery prices and delays in acquiring gear from China; the digital forex market; the Firm’s means to efficiently mine digital forex; the Firm could not be capable to profitably liquidate its present digital forex stock, or in any respect; a decline in digital forex costs could have a big unfavourable affect on the Firm’s operations; the volatility of digital forex costs; and different associated dangers as extra absolutely set out within the Submitting Assertion of the Firm and different paperwork disclosed below the Firm’s filings at www.sedar.com.

This information launch additionally comprises “monetary outlook” within the type of gross mining margins, which is meant to supply extra data solely and is probably not an acceptable or correct prediction of future efficiency, and shouldn’t be used as such. The gross mining margins disclosed on this information launch are based mostly on the assumptions disclosed on this information launch and the Firm’s Administration Dialogue and Evaluation for the quarter ended September 30, 2020, which assumptions are based mostly upon administration’s greatest estimates however are inherently speculative and there’s no assure that such assumptions and estimates will show to be right.

The forward-looking data on this information launch displays the present expectations, assumptions and/or beliefs of the Firm based mostly on data presently out there to the Firm. In reference to the forward-looking data contained on this information launch, the Firm has made assumptions in regards to the Firm’s means to appreciate operational efficiencies going ahead into profitability; worthwhile use of the Firm’s property going ahead; the Firm’s means to profitably liquidate its digital forex stock as required; historic costs of digital currencies and the power of the Firm to mine digital currencies will likely be in line with historic costs; and there will likely be no regulation or legislation that may stop the Firm from working its enterprise. The Firm has additionally assumed that no vital occasions happen exterior 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 is just not a assure of future efficiency and accordingly undue reliance shouldn’t be placed on such data as a result of inherent uncertainty therein.