January Update HIVE Blockchain Provides January 2022 Production Update
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated February 2, 2021 to its amended and restated short form base shelf prospectus dated January 4, 2022.
Vancouver, British Columbia--(Newsfile Corp. - February 4, 2022) - HIVE Blockchain Technologies Ltd. (TSXV: HIVE) (Nasdaq: HIVE) (FSE: HBF) (the "Company" or "HIVE") is pleased to announce the production figures from the Company's global Bitcoin and Ethereum mining operations for the month of January 2022, with a BTC HODL balance of 2,043 Bitcoin and 25,404 Ethereum as of January 31, 2022.
January 2022 Production Figures
HIVE is pleased to announce its January 2022 production figures and mining capacity:
264 BTC Produced
1.87 Exahash of Bitcoin mining capacity
2,170 ETH Equivalent Produced
4.56 Terahash of Ethereum mining capacity
Frank Holmes, Executive Chairman of HIVE stated "We are again pleased that HIVE carries on with its strong momentum in expanding Bitcoin hashing power even as the network difficulty continues its upward movement. In January we produced an average of 8.5 BTC per day, and we are pleased to note that as of today, we are producing approximately 8.9 BTC a day. Our Bitcoin hashing power increased in January and at the calendar month-end our hashrate was 1.87 Exahash, which translated into a 10% increase in BTC mining hashrate on a month over month basis, while BTC prices corrected."
Aydin Kilic, President & COO of HIVE noted "We continue to strive for operational excellence, ensuring that as we scale our hashrate we also optimize our uptime, to ensure ideal Bitcoin and Ethereum output figures. Mr. Kilic continued, "We also would like to provide an update on the BTC and ETH equivalency, where one can equate the value of the coins produced daily. As such the ETH that HIVE produced during the month of January, equated on a daily basis, is approximately equal to a monthly total of 161 BTC, which we refer to as Bitcoin equivalent or BTC equivalent. This is in addition to the 264 BTC produced from our Bitcoin mining operations during January, for a total of 425 Bitcoin equivalent."
The Company's total Bitcoin equivalent production in January 2022 was:
425 BTC Equivalent Produced
13.7 BTC Equivalent produced per day on average
2.9 Exahash of BTC Equivalent Hashrate (BTC hashrate plus equivalent ETH Hashrate)
Network Mining Difficulty and Energy Markets
The Bitcoin network difficulty increased as much as 10% and similarly the Ethereum network difficulty increased approximately 7.5% during the month of January. These factors impact our gross profit margins. Our January production would have been higher than actuals, however the extremely cold weather in Canada has caused Quebec Hydro to cut back 100 hours of energy consumption, under a curtailment agreement. This seasonal curtailment affects numerous crypto-mining companies operating in Quebec, along with HIVE. In addition, in New Brunswick we are experiencing, as expected, a temporary seasonal rise in energy prices. We are happy we have continued to expand our facilities and new equipment has arrived during the month to increase our PH to 1.87 Exahash for BTC mining.