HIVE Blockchain Announces $30 Million Bought Deal Financing and Launches Second Phase Expansion in Sweden

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 25, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

HIVE Blockchain Technologies Ltd. (TSX VENTURE:HIVE) (the "Company" or "HIVE") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 10,715,000 units of the Company (the "Units") at a price of C$2.80 per Unit (the "Offering Price"), for aggregate gross proceeds of C$30,002,000 (the "Bought Deal"). The Underwriters have been granted an option, exercisable at any time up to forty-eight hours prior to closing (as defined below), to purchase up to an additional 1,607,250 Units at the Offering Price (together with the Bought Deal, the "Offering"). Each Unit will consist of one common share and one common share purchase warrant (a "Warrant"), with each Warrant entitling the holder to purchase one common share at a price of $3.90 for a period of two years.

The Offering will take place by way of a private placement to accredited investors in such provinces of Canada as the Underwriters may designate, and otherwise in those jurisdictions where the Offering can lawfully be made on a private placement basis. The securities issued under the Offering will be subject to a four month and one day hold period from the date of issue in accordance with applicable securities laws in Canada, and potentially additional restrictions under the laws of other jurisdictions in which the Offering may be made.

This news release does not constitute an offer to sell the Shares in the United States or to US persons. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, and they may not be offered or sold in the United States or to a US person unless an exemption from registration is available.

The net proceeds of the Offering are expected to be used to fund the second phase of construction at the cryptocurrency mining data centre in Sweden (as described below) and for general working capital purposes.

The Offering is expected to close on or about November 14, 2017 (the "Closing Date"). Closing of the Offering is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange (the "Exchange"). Certain insiders, including Genesis Mining Ltd. ("Genesis"), and other purchasers arranged by the Company are expected to subscribe for C$10,000,000 under the Offering.