Mr. Aydin Kilic reports

HIVE BLOCKCHAIN PROVIDES APRIL 2023 PRODUCTION UPDATE WITH 9% INCREASE IN MONTH OVER MONTH HASHRATE

Hive Blockchain Technologies Ltd. has released the production figures from the company's global bitcoin operations for the month of April, 2023, with 273 bitcoin produced in April and a current BTC hodl balance of approximately 2,284 (as of May 1, 2023). (All amounts are in U.S. dollars, unless otherwise indicated.)

Summary overview:

• Hive produced 273 bitcoin in the month of April, from ASIC and GPU mining operations, representing an average of 81 bitcoin per exahash, with an average hash rate of 3.38 exahashes per second for the month of April, 2023, a 9-per-cent month-over-month increase in average hash rate.
• Hive produced an average of 9.1 BTC per day in April, 2023.
• Hive has manufactured, tested, received and installed 5,750 BuzzMiners in its data centres, all of which are operating as of today.
• Hive ended the month with 3.38 EH/s of mining capacity, including the ASIC and GPU BTC hash rate.
• Hive sold all of the bitcoin earned from its GPU mining hash rate payouts.

April, 2023, production figures

Frank Holmes, executive chairman of Hive, stated: "We are very happy to be producing 273 bitcoin while difficulty has reached an all-time high. Additionally, our monthly HPC income has increased by 24 per cent month over month from March to April."

Aydin Kilic, president and chief executive officer of Hive, noted: "We are continuing to optimize our ASIC operations by managing the efficiency of our machines to operate for best profit on a dollar per megawatt-hour basis. This may involve down-clocking the firmware for some miners in our fleet to obtain a better joule-per-terahash efficiency figure and, thus, a better dollar per MWHR profit figure. We strive to optimize for profitable mining, where the analytics of the Hive technical team provide a competitive edge in our approach to digital asset mining. Additionally, for the month of April, our GPU fleet was generating approximately $109 per MWHR in revenue, which is higher than many ASICs on the bitcoin network were earning in April. Code-based optimizations are just one tool we use to optimize our gross mining margins and deliver value for shareholders."

The company's total bitcoin production in April, 2023, was:

• 273 BTC produced;
• 9.1 BTC produced per day on average;
• 3.3 exahashes of BTC hash rate as of April 30, composed of 3.14 EH/s of ASIC BTC hash rate and 0.16 EH/s of GPU BTC equivalent hash rate;
• Monthly average of 3.38 EH/s, which is equal to 81 bitcoin per exahash, composed of an average of 3.15 EH/s of ASIC mining capacity and an average of 230 petahashes per second of bitcoin GPU mining capacity during the month;
• This represents a 9-per-cent month-over-month increase in average hash rate (March was 3.09 EH/s average hash rate).

Bitcoin global network mining difficulty is volatile

Network difficulty factors are a significant variable in the company's gross profit margins. The bitcoin network difficulty was 46.84 T as of April 1, and increased to 48.71 T as of April 30, reaching an all-time high. Accordingly, bitcoin mining difficulty ended the month about 4 per cent higher than the beginning of the month.

The bitcoin network difficulty is a publicly available statistic, which reflects the total number of bitcoin miners on-line and is important in analyzing a company's gross profit margins and number of bitcoin produced. These data are available on many websites.

As more people mine bitcoin (difficulty increases), the daily bitcoin block reward which currently is fixed at 900 bitcoin per day, gets split amongst more miners; thus, each miner receives a smaller portion of the block reward. Conversely, as bitcoin prices fall, many miners may lose money and power down, thus taking their hash rate off the network, causing network difficulty to decrease.

Those miners with the lowest costs of production, by virtue of having more efficient machines and/or lower energy costs, are able to continue their production during these volatile cycles. Not all miners will continuously mine during the month. As a result, some miners will produce less bitcoin than expected, relative to their advertised hash rate. For the foregoing reasons, Hive will self-curtail part of its operations if the unhedged spot energy prices are uneconomical, thereby leaving part of its total gross hash rate unutilized.

All bitcoin miners are striving to use the most efficient bitcoin ASIC chips, and Hive is happy that it has been able to upgrade its global fleet during this crypto market downturn.

Sweden data centres help stabilize electrical grid during major blackout

On April 26, the capital of Sweden, Stockholm, was hit by a serious power outage. The consequences were great for several industries, and subway and commuter train traffic came to a standstill. Hive's data centres in northern Sweden assisted with more than 20 megawatts on demand response, and were able to power down and thus help to quickly stabilize the electricity grid and help mitigate repercussions for the utility provider.

About Hive Blockchain Technologies Ltd.

Hive went public in 2017 as the first publicly traded cryptocurrency mining company with a green energy focus.

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 endeavours to source green energy to mine digital assets such as bitcoin on the cloud. Since the beginning of 2021, Hive has held in secure storage the majority of its treasury of ETH and BTC derived from mining rewards. Its shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of bitcoin. 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.

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