HIVE Blockchain rebuilds previously published financial statements based on the cashless valuation of 25,000 Ethereum investments

No impact on HIVE’s liquidity position, operations or commercial arrangements.
HIVE remains well capitalized and well positioned in the current digital currency landscape.

This press release constitutes a “Designated Press Release” within the meaning of the Company’s February 2, 2021 Supplement to its abridged prospectus dated January 27, 2021.

Vancouver, British Columbia – (Newsfile Corp. – October 25, 2021) – HIVE Blockchain Technologies Ltd. (TSXV: HIVE) (Nasdaq: HIVE) (FSE: HBF) (the “Company” or “HIVE”) announced that the previously published financial statements for the interim period ended June 30, 2021 and 2020 and the related discussions and analysis of Management (collectively the “Original Documents”) have been reformulated and reissued (collectively the “Reissued Documents”) and under the Company Profile on www.sedar.com. An incorrect mark-to-market value, on which the original documents were based, resulted in the 25,000 Ethereum coin inventory being higher and, as a result, overestimating the company’s profits by about $ 5.0 million. Reported sales for the quarter remain unchanged. The result is made up of two main components, cash flow from operating activities and changes in liquid assets like stocks, bonds, and digital assets like Bitcoin (BTC) and Ethereum (ETH). The reported business income has not changed, however the price used to value the 25,000 ETH Coins in our Cold Wallet has been recalculated and reduced by USD 200 per ETH Coin, with this amount expected in the following quarter will be withdrawn in full by September 2021 to increase the mark-to-market value of ETH coins.

The impact of the adjustment will have no impact on the day-to-day operations of the business, income from digital currency mining, equipment, or other assets. The restatement is non-cash and will not affect the company’s positive operating results. The stock of cryptocurrency coins as of June 30, 2021 remains unchanged and unaffected as reported. The ETH inventory will remain the same for the following quarter, while the BTC inventory increased in the calendar quarter of 2021 from July to September.

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Details of the changes are described in detail in Note 27 of the amended condensed consolidated interim financial statements for the three months ended June 30, 2021 and 2020, which were filed with SEDAR on October 25, 2021.

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 emerging blockchain industry. As a company whose shares are traded on a major stock exchange, we build a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns state-of-the-art, green power data center facilities in Canada, Sweden and Iceland, where we only get green power for mining in the cloud and HODL for both Ethereum and Bitcoin. Since the beginning of 2021, HIVE has kept the majority of its ETH and BTC coin mining rewards safe. Our stocks offer investors exposure to digital currency mining operating margins as well as a portfolio of cryptocurrencies such as ETH and BTC. With HIVE also having hard assets like data centers and advanced multi-purpose servers, we believe our stocks offer investors an attractive way to get exposure to the cryptocurrency space. HIVE traded over 2 billion shares in 2020.

We encourage you to visit HIVE’s YouTube channel here to learn more about HIVE.

For more information and to subscribe to HIVE’s mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.

On behalf of HIVE Blockchain Technologies Ltd.
“Frank Holmes”
Chairman of the Board

For more information please contact:
Frank Holmes
Tel: (604) 664-1078

Neither the TSX Venture Exchange nor its regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward-looking information

Except for historical facts, this press release contains “forward-looking information” within the meaning of applicable Canadian and US securities laws based on expectations, estimates and projections as of the date of this press release. “Forward-looking information” in this press release includes, but is not limited to, statements relating to information about statements relating to the effects of the reformulated documents, the company’s potential for long-term growth, and the company’s business goals and objectives.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to: the risk that additional information may be obtained after filing the reformulated documents; the volatility of the digital currency market; the company’s ability to successfully mine digital currencies; the company may not be able to liquidate its current holdings of digital currencies as necessary or profitably at all; a significant drop in digital currency prices can have a material adverse effect on the company’s business; the volatility of digital currency prices; sustained effects of the COVID-19 pandemic could severely affect company performance as supply chains are disrupted and prevent the company from completing its expansion plans or operating its assets; and other related risks, as further set out in the company’s registration statement and other documents disclosed in the company’s filings at www.sec.gov/EDGAR and www.sedar.com.

The forward-looking information in this press release reflects the company’s current expectations, beliefs and / or beliefs based on information currently available to the company. In conjunction with the forward-looking information contained in this press release, the company has made assumptions about the current profitability of mining cryptocurrencies (including pricing and volume of current transaction activity); profitable use of the company’s assets in the future; the company’s ability to liquidate its holdings of digital currencies for profit as needed; historical prices of digital currencies and the company’s ability to mine digital currencies will be consistent with historical prices; and there will be no rules or laws preventing the company from doing its business. The company has also assumed that no material events will occur outside the normal course of business of the company. While the company believes that the assumptions inherent in any forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly, undue reliance should not be placed on such information due to its inherent uncertainty.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/100695