Mr. Frank Holmes reports
HIVE BLOCKCHAIN ACHIEVES 1 EXAHASH IN BITCOIN MINING
Hive Blockchain Technologies Ltd. will achieve its previously announced target of one exahash per second of bitcoin mining hash rate.
One-exahash bitcoin production target achieved
Hive is proud to announce that its global hash rate from bitcoin mining will exceed one exahash per second today. Over the past 24 hours in Canada, the company has received deliveries of 1,845 bitcoin miners with a total hash rate of 172 petahashes per second. These miners will be deployed between the company's two Canadian data centres. Nine hundred forty-five miners will be located in Lachute, Que., and 900 miners in Grand Falls, N.B.
"This is a monumental achievement for us as we continue to our goal of over three ex/s by the end of fiscal 2022, including the conversion of ETH, a goal which is greatly supported by today's announcement of new miner deliveries," Frank Holmes, executive chairman of Hive.
He continued, "This achievement has been challenging because of the global shortages in chips and logistics delays in shipping equipment from Asia due to COVID-19."
These recent miner deliveries are a result of the company's strategy to increase bitcoin mining capacity, which includes the sourcing of mining equipment from leading industry manufacturers. Hive intends to continue to utilize cash flow to make opportunistic investments and upgrade its fleet of BTC and ETH mining equipment on a regular monthly basis.
Its strong hash rate from both bitcoin and ethereum is resulting in a daily income of over $600,000, or an annual run rate of $220-million, based on the current difficulty, global hash rates, and bitcoin and ethereum prices, with estimated annual expenses of $25-million. As expansion continues to ramp up, this number will increase. As always, the company cautions its investors that bitcoin and ethereum continue to have a high daily volatility of plus or minus 6 per cent, and investors need to be aware of this volatility. Its current inventory of coins invested in bitcoin and ethereum is valued at $116-million.
BTC production trend and hodl update
Currently, the company holds 946 bitcoin in cold wallet custody. The company is pleased to provide the following update on its global BTC growth in production for the current 2022 fiscal year:
- April, 2021: 64 BTC;
- May, 2021: 73 BTC;
- June, 2021: 86 BTC;
- July, 2021: 200 BTC.
The company will release its August, 2021, bitcoin production in a coming press release after the month has ended.
Biweekly status update
Hive is also announcing that it expects to file its annual financial statements and accompanying management's discussion and analysis for the financial year ended March 31, 2021, on or before Sept. 16, 2021. As a result of the delayed annual filings, the company will have a delay in the filing of its interim financial statements, management's discussion and analysis, and the related certifications for the period ended June 30, 2021, which have a filing deadline of Aug. 30, 2021. Hive will continue to provide biweekly status updates on the delay of filing its annual filings and interim filings. This means the board and management are in a blackout period, and cannot trade in the shares until the annual filings and the interim filings have been filed.
"Like most shareholders, I am very disappointed and dissatisfied with the time delays and promise this will not happen again. I will undertake to change processes to fast-track more timely audits for all financial reporting periods once the year-end and interim results are filed," said Mr. Holmes.
"We will work to reconfigure the financial reporting process with all the different jurisdictions that we operate in," stated Darcy Daubaras, chief financial officer of Hive.
Hive management confirms that it is working diligently to meet the company's obligations relating to its annual filings and that, since it announced a delay of its annual filings, there is no material change to the information set out in the filings notice that has not been generally disclosed and there has been no failure by the company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in National Policy 12-203. While subject to the MCTO, the company will continue to comply with the provisions of the alternative information guidelines under NP 12-203 by issuing biweekly status reports until it has satisfied the necessary filing requirements.
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 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.
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