Mr. Frank Holmes reports

HIVE BLOCKCHAIN PROVIDES JUNE 2023 PRODUCTION UPDATE

Hive Blockchain Technologies Ltd. has released the unaudited production figures from the company's global bitcoin operations for the month of June, 2023, with 259 bitcoin produced in June, and a current BTC hodl balance of approximately 1,957 (as of July 1). The company has maintained over 3.3 exahashes per second of bitcoin mining capacity on average for June, 2023, including ASIC and GPU BTC hash rate (all amounts in U.S. dollars, unless otherwise indicated).

Summary overview:

• Hive Blockchain produced 259 bitcoin in the month of June, from ASIC and GPU mining operations, representing an average of 76.6 bitcoin per exahash, with an average hash rate of 3.38 EH/s for the month of June, 2023.
• Hive Blockchain produced an average of 8.6 BTC per day in June, 2023.
• Hive Blockchain ended the month with 3.48 EH/s of mining capacity, including the ASIC and GPU BTC hash rate.

June, 2023, production figures

Aydin Kilic, president and chief executive officer of Hive Blockchain, noted: "Since our June month-end, our ASIC hash rate reached 3.4 EH/s in the first week of July, and is expected to continue to grow this month, as the majority of our 1.26 EH/s of ASICs which were previously announced, have been shipped, and we are continuing to install them in our data centres upon delivery. We expect to provide updates on our growing hash rate capacity as we work towards our interim goal of four EH/s, and moreover, we are actively evaluating opportunities in the market for our year-end goal of six EH/s."

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

• 246 BTC produced from ASICs from an average hash rate of 3.2 EH/s from ASICs in June;
• 8.2 BTC produced per day on average from ASICs, and 76.6 BTC/EH from ASICs in June;
• 3.48 EH/s of BTC month-end hash rate as of June 30, composed of 3.316 EH/s of ASIC BTC hash rate and 0.166 EH/s of GPU BTC hash rate;
• Monthly average of 3.38 EH/s, composed of an average of 3.212 EH/s of ASIC mining capacity and average of 167 PH/s of bitcoin GPU mining capacity during the month of June;
• This represents a 4.6-per-cent month-over-month-end increase in BTC ASIC hash rate (May 30 month-end was 3.17 EH/s hash rate), and a 3-per-cent month-over-month average increase in BTC hash rate from ASICs and GPUs combined (May average BTC hash rate was 3.3 EH/s).

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 51.23 T as of June 1, and reached a new all-time high of 52.35 T during the month before ending at 50.65 T on June 30. Accordingly, bitcoin mining difficulty ended the month about 1 per cent lower 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 Blockchain 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 the company is happy that it has been able to upgrade its global fleet during this crypto market downturn.

About Hive Blockchain Technologies Ltd.

Hive Blockchain went public in 2017 as the first cryptocurrency mining company listed for trading on the TSX Venture Exchange with a sustainable green energy focus.

Hive Blockchain 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 Blockchain 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 Blockchain 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 Blockchain 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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