Mr. Frank Holmes reports

HIVE ANNOUNCES RECORD QUARTERLY REVENUE OF $68 MILLION UP 397% FROM THE SAME QUARTER LAST YEAR AND EARNINGS FOR OUR 3RD QUARTER ENDED DECEMBER 31, 2021

Hive Blockchain Technologies Ltd. has released a record earnings report for the third quarter ended Dec. 31, 2021 (all amounts are in U.S. dollars, unless otherwise indicated).

For the three-month period, revenue rose to $68.2-million, up 30 per cent compared with last quarter and 397 per cent since the same quarter last year. Net income reached $64.2-million, up 7 per cent from last quarter and 273 per cent since the prior year.

Hive's combined liquid bitcoin and ethereum had a gross value of $168-million, up 11 times from $15-million a year ago ended Dec. 31, 2020. Hive ended the current December quarter holding 1,813 bitcoin (BTC) worth $83.1-million and 23,290 ethereum (ETH) worth $84.9-million.

Frank Holmes, Hive's executive chairman, stated, "We wish to again thank our loyal shareholders for believing in our vision to mine both ethereum and bitcoin to generate robust cash flow returns on invested capital, and we believe our results continue to validate the significant contribution to our strategy to mine both BTC and ETH and hodl as many coins as possible."

Darcy Daubaras, Hive's chief financial officer, said: "A year ago, we made the conscious decision not to sell our mined cryptocurrency or undertake an expensive financing when brokers were offering capital at 20-per-cent discounts or encouraging us to borrow against our BTC and ETH assets at a 12-per-cent cost of capital in the scramble by crypto mining companies to purchase more ASIC chips. Hive's modest equity fundings were done at prevailing market prices or premiums to the stock price, and this has helped us generate the highest robust returns on invested capital relative to our peers."

Q3 quarterly highlights -- Dec. 31, 2021:

• Generated revenue from digital currency mining of $68.2-million, with a gross mining margin (1) of $61.7-million;
• Mined 697 bitcoin and over 7,126 ethereum during the three-month period ended Dec. 31, 2021;
• Earned net income of $64.2-million for the period;
• Working capital increased by $141.2-million during the three-month period ended Dec. 31, 2021;
• Digital currency assets of $168.1-million as at Dec. 31, 2021.

Third quarter fiscal 2022 financial review

For the three months ended Dec. 31, 2021, revenue from digital currency mining was $68.2-million, an increase of approximately 397 per cent from the prior year primarily due to an increase in cryptocurrency prices, the increased production of bitcoin as a result of the Quebec and Atlantic facility acquisition, and the purchase of miners for those facilities.

Gross mining margin (1) during the period was $61.7-million, or 90 per cent of income from digital currency mining, compared with $10.6-million, or 78 per cent of income from digital currency mining, in the same period in the prior year. The company's gross mining margin from digital currency mining is partially dependent on external network factors, including mining difficulty, and the amount of digital currency rewards and fees it receives for mining, as well as the market price of digital currencies.

Net income during the quarter ended Dec. 31, 2021, was $64.2-million, or 17 cents per share, compared with $17.2-million, or five cents per share, the same period last year. The improvement was driven primarily by the improvement in gross mining margin (1), higher ethereum and bitcoin prices, gains on the sale of digital currencies, and foreign exchange.

Financial statements and management's discussion and analysis

The company's consolidated financial statements and management's discussion and analysis thereon for the three and nine months ended Dec. 31, 2021, will be accessible on SEDAR under Hive's profile and on the company's website.

Webcast details

Management will host a webcast on Feb. 15, 2022, at 8:30 a.m. Eastern Time, to discuss the company's financial results. Presenting on the webcast will be Mr. Holmes, Mr. Daubaras, and Aydin Kilic, president and chief operating officer. Please register for the webcast.

About Hive Blockchain Technologies Ltd.

Hive 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.

(1) Non-international financial reporting standard measure.

We seek Safe Harbor.