Mr. Frank Holmes reports

HIVE ACHIEVES RECORD QUARTERLY REVENUE OF $37.2 MILLION AND EARNINGS OF $18.6 MILLION FOR Q1 F2022

Hive Blockchain Technologies Ltd. has released its results for the first quarter ended June 30, 2021 (all amounts are in U.S. dollars, unless otherwise indicated).

Gross revenue from digital currency mining was $37.2-million in the first quarter, a 466-per-cent increase from the same quarter last year and 11 per cent higher than the previous quarter. Record quarterly net income was $18.6-million, up significantly from $1.8-million a year earlier and $4.3-million higher than the previous quarter. Gross mining margin expanded to $31.0-million from $2.6-million last year, and is $3.3-million higher than that experienced in the prior quarter of $27.7-million. Net income per share grew to five cents from nil during the prior year and is one cent higher than the previous quarter of March 31, 2021.

"The first quarter of fiscal 2022 has continued the momentum that we had in fiscal 2021. It has been an incredible year for Hive. Despite the effects of COVID-19 and associated supply chain issues, we have achieved record results and continued to increase our ethereum and bitcoin mining capacity," said Frank Holmes, interim executive chairman of Hive.

What many investors have not realized is the significance of mining ethereum in addition to bitcoin, which has continued to exhibit very strong performance throughout this calendar year, after our Q1 period-end of June 30, 2021, and even after the London hard fork in August, 2021.

Of note, for the month of September, 2021, Hive mined approximately 221 bitcoin and 2,572 ethereum. On a daily revenue basis during September, 2021, this income from ethereum would be equal to mining approximately 186 bitcoin. Therefore, the total equivalent of bitcoin mined on a daily revenue basis for Hive's September, 2021, production is approximately 407 bitcoin, or an average of approximately 13.6 bitcoin equivalent mined per day.

As such, Hive appears to be the most profitable crypto mining company amongst its peers with a rapidly growing bitcoin hodl strategy.

"During this most recent quarter, we acquired Hive Atlantic in April, 2021, giving us a substantial bitcoin mining operation in New Brunswick, Canada. We are well into the process of expanding capacity through new construction at this data centre campus and are installing next-generation bitcoin mining equipment, which is arriving monthly.

"The acquisition of the New Brunswick data centre campus gives us a strategic advantage in this competitive industry. Owning our own state-of-the-art facilities means we don't have to worry about landlords raising the rent and gives us full control of our operations.

"Hive now has the land, buildings, talent and mining equipment we need to succeed. We are focused on improving efficiency and profitability by optimizing cryptocurrency mining output. We're lowering costs and maximizing our existing electrical and infrastructure capacity by installing new mining equipment as the orders roll in.

"During the first fiscal quarter, we received ASIC machines every month, which allowed us to allocate these new-generation miners between our two facilities in Canada. These purchases were partially financed by the $100-million at-the-market program. We sold a small amount of ethereum to upgrade our equipment with Nvidia latest generation of high performing GPU chips but continue to hodl 25,000 ETH and 1,030 BTC. We continue to ramp up production of both BTC and ETH."

Q1 quarterly highlights -- June 30, 2021:

• Generated revenue from digital currency mining of $37.2-million, with a gross mining margin (1) of $31.0-million;
• Mined 225 bitcoin and over 9,700 ethereum during the three-month period ended June 30, 2021;
• Earned net income of $18.6-million for the period;
• Working capital increased by $20.9-million during the three-month period ended June 30, 2021;
• Digital currency assets of $82.2-million as at June 30, 2021.

Q1 fiscal 2022 financial review

For the three months ended June 30, 2021, revenue from digital currency mining was $37.2-million, an increase of approximately 466 per cent from the prior year. This was primarily due to an increase in the production of ethereum and bitcoin stemming from mining expansion and considerably higher coin prices.

Gross mining margin (1) during the year was $31.0-million, or 83 per cent of revenue from digital currency mining, compared with $2.5-million, or 39 per cent of revenue from digital currency mining, in the same period the prior year. The improvement was primarily due to the company's assumption of control over its operations in Sweden during fiscal 2020, which has resulted in lower costs, combined with the cessation of bitcoin cloud mining operations after they became unprofitable in the third quarter of fiscal 2020, and the switch to independent mining at the company's bitcoin mining facility in Quebec. The company's gross mining margin from digital currency mining is partially dependent on external factors, including mining difficulty, and the amount of digital currency rewards and fees received for mining, as well as the market price of digital currencies.

Net income during the quarter ended June 30, 2021, was $18.6-million, or five cents per share, compared with $1.8-million, or nil per share, the same period last year. The improvement was driven primarily by the increase in gross mining margin (1), higher ethereum and bitcoin prices, gains on the sale of digital currencies, and foreign exchange.

(1) Non-international financial reporting standard measure. A reconciliation to its nearest IFRS measures is provided under "Reconciliations of Non-IFRS Financial Performance Measures" in the company's management's discussion and analysis.

(2) Revaluation is calculated as the change in value (gain or loss) on the coin inventory. When coins are sold, the net difference between the proceeds and the carrying value of the digital currency (including the revaluation) is recorded as a gain (loss) on the sale of digital currencies.

Financial statements and MD&A

The company's consolidated financial statements and management's discussion and analysis thereon for the three months ended June 30, 2021, will be accessible on SEDAR under Hive's profile and on the company's website.

Webcast details

Management will host a webcast on Oct. 4, 2021, at 10 a.m. Eastern Time, to discuss the company's financial results. Presenting on the webcast will be Mr. Holmes, and Darcy Daubaras, chief financial officer. Please register for the webcast.

About Hive Blockchain Technologies Ltd.

Hive Blockchain went public in 2017 as the first cryptocurrency mining company with a green energy and ESG (environmental, social and corporate governance) strategy.

Hive is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, it is building a bridge between the digital currency and blockchain sector and traditional capital markets. Hive owns state-of-the-art, green-energy-powered data centre facilities in Canada, Sweden and Iceland, where it sources only green energy to mine on the cloud and hodl both ethereum and bitcoin. Since the beginning of 2021, Hive has held in secure storage the majority of its ETH and BTC coin mining rewards. Its shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies such as ETH and BTC. Because Hive also owns hard assets such as data centres and advanced multiuse servers, it believes its shares offer investors an attractive way to gain exposure to the cryptocurrency space. Hive traded over two billion shares in 2020.

(1) Non-international financial reporting standard measure.

We seek Safe Harbor.