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Vancouver, BC, July 22, 2022--(T-Net)--HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (Nasdaq:HIVE) (FSE: HBFA.F) announced today its results for the full year ended March 31, 2022 (all amounts in US dollars, unless otherwise indicated).

Revenue was $211.2 million this fiscal year, a 212% increase from the prior year. Record net income of $79.6 million, up significantly from $24.1 million a year earlier. Basic income per share grew 191% to $1.02 from $0.35 during the prior year. Gross mining margin1 expanded to $163.9 million, from $51.1 million last year.

"Even with financings during the year and the acquisition and expansion of our New Brunswick facility, our growth in revenue and net income was accretive on a per share basis" said the company in a release.

"These gains in our revenues and earnings are a result of the immense growth of HIVE during a key time in the evolution of cryptocurrency mining. HIVE grew from approximately 310 PH/s of Bitcoin mining and 2,700 GH/s of ETH mining as of March 31, 2021, to a milestone hashrate of 2 Exahash (or 2,000 PH/s) and approximately 6,100 GH/s of ETH mining in March 2022. This is a 545% growth in BTC mining hashrate and 225% growth in ETH mining hashrate year over year" stated the company.

The Company was one of the top publicly traded mining companies measured by value of cryptocurrency mined in the calendar year 2021 (ending December 31, 2021) with a Bitcoin Equivalent of 4,032 BTC mined. 

HIVE mined 2,368 Bitcoin and 32,397 Ethereum equivalent from GPU hashrate (which includes 31,840 Ethereum plus other GPU minable coins), in the Company's fiscal year ending March 31, 2022, which is equivalent to an additional 2,143 Bitcoin Equivalent mined from HIVE's GPU hashrate, for a total value of cryptocurrency mined of approximately 4,511 Bitcoin Equivalent mined this fiscal year of 2022.

Frank Holmes, EXECUTIVE CHAIRMAN, HIVE Blockchain Technologies Ltd.

"Fiscal 2022 was an incredible year for HIVE. Despite the effects of COVID-19 such as global logistics and inflation we have achieved record results on a per share basis and continued to increase our Ethereum and Bitcoin mining capacity, without taking risks to stake our BTC or ETH to earn a yield on our assets," said Frank Holmes, Executive Chairman of HIVE. Mr. Holmes added "We are also proud that during the year we were able to pay down our debt by over $5.5 million."

Fiscal Year 2022 Highlights

• Generated revenue of $211.2 million, with a gross mining margin[1] of $163.9 million
• Mined 2,368 Bitcoin and 32,397 Ethereum equivalent from GPU hashrate (including 31,840 Ethereum) during the year ended March 31, 2022
• Earned net income of $79.6 million for the year
• Working capital increased by $76.5 million during the year ended March 31, 2022
• Digital currency assets of $170.0 million, as at March 31, 2022

The Company's Consolidated Financial Statements and Management's Discussion and Analysis (MD&A) thereon for the three months and year ended March 31, 2022 will be accessible on SEDAR at www.sedar.com under HIVE's profile and on the Company's website at www.HIVEblockchain.com.

Fiscal 2022 Financial Review

For the fiscal year ended March 31, 2022, revenue was $211.2 million, an increase of approximately 212% from the prior year primarily due to an increase in the production of Ethereum and Bitcoin stemming from mining expansion.

Gross mining margin1 during the year was $163.9 million, or 78% of revenue, compared to $51.1 million, or 76% of revenue, in fiscal 2021. The improvement was primarily due to the acquisition and expansion of our New Brunswick Datacentre in April 2021 which has resulted in a significant increase in Bitcoin hashpower and Bitcoin rewards earned compared to the prior year. The Company's gross mining margin from digital currency mining is partially dependent on external network factors including mining difficulty, the amount of digital currency rewards and fees it receives for mining, as well as the market price of digital currencies.

Net income during fiscal 2022 was $79.6 million, or $1.02 per share, compared to a net income of $24.1 million, or $0.35 per share, in fiscal 2021. The improvement was driven primarily by the improvement in gross mining margin1, higher Ethereum and Bitcoin prices, additional hashpower from our New Brunswick facility, gains on the sale of digital currencies, and foreign exchange.

About HIVE Blockchain Technologies Ltd.

HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.

HIVE is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchanges, we are 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 we source green energy to mine on the cloud and generate rewards of 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. Our 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 centers and advanced multi-use servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space.

1. Non-IFRS measure. A reconciliation to its nearest IFRS measures is provided under "Reconciliations of Non-IFRS Financial Performance Measures" in the Company's MD&A.
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 ­

Non-Cash Charges Restatement of Financial Statements and MD&A

­The consolidated financial statements and MD&A for the years ended March 31, 2022 and 2021 provide for the following restatements to the consolidated statements of financial position and the consolidated statements of income and comprehensive income.

The Company identified an incorrect share price used in the Black Scholes calculation of the fair value and therefore the allocation of value of convertible debentures issued in the fiscal 2021 period. The error was identified during the preparation of the 2022-year end consolidated financial statements, is a non-cash charge and impacted the consolidated statement of financial position as at March 31, 2021 and the consolidated statement of income and comprehensive income with an increase in fair value of the derivative liability by $6,319,247 and corresponding non-cash charge to the consolidated statement of income and comprehensive income.

In the current year, the Company made a voluntary change in the accounting treatment of its digital currencies from a broker - dealer model under IAS 2, Inventories to IAS 38, Intangible Assets. The Company believes that the change in recording its digital currencies will provide shareholders with a better reflection of the Company's business activities and enhance the comparability of the Company's financial information to its Canadian industry peers. The restatement impacted the consolidated statement of financial position as at March 31, 2022 and the consolidated statement of income and comprehensive income with a decrease in the recorded value of digital currencies by $9,957,582 and corresponding charge to the consolidated statement of income and comprehensive income. There was no significant impact to the consolidated financial statements as a result of this change for the year ended March 31, 2021.

It is important to reiterate that both of the foregoing restatements are non-cash charges and do not impact the Company's ongoing operations, revenue from digital currency mining, equipment or other assets. Cash provided by operating activities and the Company's positive operating results are not restated.

The Company has made changes to its internal controls, implemented additional checks and balances and will hire additional staff in the financial accounting department.

Details of the changes are fully described in Note 30 to the consolidated financial statements for the years ended March 31, 2022, and 2021.