HIVE Blockchain Reports $5.6 Million of Net Income, Positive Cash Flow and Releases First Quarter Financial Results


ZUG, Switzerland and VANCOUVER , Oct. 8, 2019 /CNW/ – HIVE Blockchain Technologies Ltd. (HIVE.V) (HVBTF) (the “Company” or “HIVE”) announces its results for the first quarter ended June 30, 2019 (all amounts in US dollars, unless otherwise indicated).

“I am pleased to report a healthy first quarter of positive net income and positive cash flow,” said Frank Holmes , Interim Executive Chairman of HIVE. “The financial results reflect our relentless efforts to restructure the Company to ensure transparency and accountability and to strengthen our operational control of HIVE and improve our operational efficiency. These improvements along with a record quarter of mining Bitcoin enabled us to navigate successfully the significant year-over-year decline in the price of Ethereum. The Company ended the first quarter on solid financial footing with nearly $22 million of current assets, including nearly $8 million of cash.”

“Despite positive financial results, 2019 has been a challenging year for HIVE as we were forced to defend against a proxy battle,” added Mr. Holmes. “However, we prevailed and the Company is benefitting from improved transparency, including new direct contracts with local suppliers rather than through our service provider,and financial controls. We expect further continued improvements throughout the fiscal year.

“Our Swedish facility was shut down through much of the first half of the calendar year, a period of low Ethereum prices. We successfully rebooted the facility in July and are already seeing improvements in efficiency from our new strategic partnership with Blockbase Group announced in August, with transition anticipated to be complete in the near future.”

“Blockchain technology and cryptocurrencies continue to evolve,” noted Mr. Holmes. “I am proud of the progress that we have made as industry leaders. We remain at the forefront of an emerging industry and our financial results speak to the operational improvements that we have made at the Company. With an improved cost structure and stabilization of the asset class, I remain confident that HIVE is very well positioned to benefit from positive momentum in the blockchain ecosystem.

“We are hopeful these operational improvements will ultimately be reflected in our share price,” concluded Mr. Holmes. “For most of our history as a public company, there has been a significant correlation between cryptocurrency prices and HIVE’s share price as investors have used us as proxy for cryptocurrencies. Unfortunately, that correlation was impacted negatively following the proxy battle in the spring. This was amplified recently by large selling volume by a large blockchain industry ETF. This ETF uses rules-based investing and had to divest its shares in HIVE due to portfolio rules requiring issuers to have a market capitalization above $100 million . However, these shares have now been absorbed by new buyers. The ETF will able to reacquire their position, as they have with other companies, when our market cap rises back above $100 million .”

  • Generated income of $9.1 million , with a gross mining margin of $3.6 million from mining of digital currencies;
  • Mined 1,331 newly minted Bitcoin during the period
  • Mined approximately 35,000 Ethereum Classic and over 3,200 newly minted Ethereum during the period
  • Earned net income of $5.6 million for the period.
  • For the quarter ended June 30, 2019 , HIVE’s gross mining margin was 39%. First quarter income from digital currency mining was produced from an average of 3.8 MW of GPU production capacity, and 300 PH of Cloud Mining capacity, as at June 30, 2019 . Below is an analysis of the Company’s income and gross mining margin:

    Three months ended June 30,



    Income from digital currency mining





    Operating and maintenance costs of digital currency mining



    Gross Mining Margin1



    Gross Mining Margin %1






    Gross Profit



    Revaluation of digital currencies2



    Gain on sale of digital currencies



    General and administrative expenses



    Foreign Exchange



    Share-based compensation



    Unrealized gain on investments


    Finance expense



    Tax expense (recovery)


    Gain (loss) from continuing operations










    Adjusted EBITDA3





    Diluted income (loss) per share





    Net cash inflows (outflows) from operating activities





    Net cash inflows (outflows) from investing activities




    Net cash inflows (outflows) from financing activities





    As at

    June 30, 2019

    March 31, 2019

    Total assets





    Total non-current liabilities





    Gross mining margin equates to income from digital mining less operating and maintenance costs and is a non-IFRS measure; see Non-IFRS Measures in MD&A for reconciliation


    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


    EBITDA and Adjusted EBITDA are non-IFRS measures; see Non-IFRS Measures in MD&A for reconciliation

    The Company’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis (MD&A) thereon for the three months ended June 30, 2019 will be accessible on SEDAR at under HIVE’s profile and on the Company’s website at

    Management will host a webcast on Wednesday, October 9, 2019 at 8:30am Eastern Time to discuss the financial results for the three months ended June 30, 2019 . Presenting on the webcast will be Frank Holmes , Interim Executive Chairman and Darcy Daubaras , Chief Financial Officer. Webcast details will be provided in a separate news release.

    HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. 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.

    @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.” data-reactid=”42″>For more information and to register to HIVE’s mailing list, please visit Follow @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.

    On Behalf of HIVE Blockchain Technologies Ltd.

    SOURCE HIVE Blockchain Technologies Ltd.

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