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HIVE Increases ASIC Bitcoin Mining Capacity by 100 Petahashes, and Receives Purchase Option for a Further 100 Petahashes from Genesis in 2019

V.HIVE

Canada NewsWire

ZUG, Switzerland and VANCOUVER, Nov. 30, 2018 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the "Company" or "HIVE") today announced the addition of 100 Petahashes ("PH") of cloud-based ASIC mining capacity bringing total capacity to 300PH's at a cost of US$6 million, payable as US$2.5 million in cash or Ethereum and an additional $3.5 million in the form of 8,317,490 common shares, valued at approximately C$0.55 per share, a significant premium to HIVE's current trading price.

HIVE Blockchain Technologies Ltd. (CNW Group/HIVE Blockchain Technologies Ltd.)

The cost per Petahash is significantly reduced versus previous ASIC deployments and the agreement also includes a 6 month option, starting January 1, 2019, for HIVE to add a further 100PH's at the same economic terms as today's announcement. The immediate 100PH's increases ASIC mining by 50% and positions the Company as one of the largest publicly listed cryptocurrency miners. The additional PH agreement, including the 6 month option, is subject to the approval of the TSX Venture Exchange.

"In our view, this transaction shows tremendous support from our partners at Genesis and demonstrates the many benefits of our strategic partnership, with Genesis providing HIVE the ability to leverage its existing ultra low-cost, global platform to immediately increase our ASIC mining footprint and cash flow profile, without the need to construct a new facility. The option to purchase a further 100PH's post December 2018 allows HIVE the ability to preserve our cash and coin balance now and strategically increase production in the right market environment" said Frank Holmes, interim Executive Chairman. "This increase in capacity and future optionality comes on the heels of the recent announcement regarding improved financial terms of our bitcoin mining contract and the addition of Marco Streng, CEO of Genesis Group, as Vice Chairman of HIVE. Despite the volatility in cryptocurrency prices experienced throughout 2018, we believe that these low-cost increases in our mining capacity have better positioned HIVE within the current landscape and we now stand to benefit tremendously from potential improvements in the cryptocurrency markets, specifically Bitcoin and Ethereum."

Management will host a webcast on Friday, November 30, 2018 at 5:30am Pacific Time/7:30am Central Time/8:30am Eastern Time to discuss the Fiscal 2019 Q2 results and this new agreement.

Click here to register for the webcast

About HIVE Blockchain Technologies Ltd.

HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE is strategically partnered with Genesis Mining Ltd. to build the next generation of blockchain infrastructure. HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland and Sweden, which produce newly minted digital currencies like Ethereum continuously as well as cloud-based ASIC-based capacity which produces newly minted digital currencies like Bitcoin. Our deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a growing portfolio of crypto-coins.

For more information and to register 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"

Interim Executive Chairman

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

Forward-Looking Information

Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes information about the addition of 100 PH of cloud-based ASIC mining capacity; the 6 month option for the Company to add a further 100PH's and the terms thereon; the increase in the Company's ASIC mining footprint and cash flow profile; potential improvements in the cryptocurrency markets; long term growth of the Company; the business goals and objectives of the Company, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the Company may not receive regulatory approval for the additional 100 PH cloud contract, nor the additional 100 PH could contract; the ongoing partnership with Genesis; the digital currency market; the Company's ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; and other related risks as more fully set out in the Company's disclosure at www.sedar.com.

The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's ability to complete the 100 PH could contract, and the additional option for 100 PH could contract; the Company will be able to profitably liquidate its digital currency inventory as required; the Company's ongoing partnership with Genesis; historical prices of digital currencies and the ability of the Company to mine digital currencies will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

SOURCE HIVE Blockchain Technologies Ltd.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2018/30/c1778.html

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