Source: GMP Securities L.P.

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

US $22 Million Sweden Expansion to Grow HIVE's Cryptocurrency Mining Capacity by over 60%

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.

Expansion of the Sweden Data Centre

HIVE is pleased to announce that it has entered into a legally binding letter agreement dated October 25, 2017 with its largest shareholder Genesis Mining Ltd. under which the Company will finance the construction of the second phase of cryptocurrency mining rigs (the "Expansion") at the data centre in Sweden (the "Sweden Data Centre"). Please refer to the Company's October 23, 2017 news release for more detail on the first phase of construction at the Sweden Data Centre.

The Expansion will consist of newly constructed GPU mining rigs using the latest hardware, custom-designed by Genesis. The Company's cryptocurrency mining capacity or hashpower is anticipated to double in Sweden as a result of the Expansion and upon completion, HIVE's hashpower capacity is expected to be based approximately 78% in Sweden and 22% in Iceland.

The Expansion at the Sweden Data Centre will be constructed by Genesis for consideration of an estimated US$22 million and is expected to be completed in March 2018. This is in addition to the previously announced US$22 million consideration for the first phase of the Sweden Data Centre construction, expected to be completed in December 2017. Pursuant to a master services agreement between the Company and Genesis (the "MSA"), Genesis will be responsible for hosting, maintenance and related services for the Expansion for a monthly fee.

Completion of the Expansion is subject to a number of conditions, including but not limited to, Exchange approval as required, and completion of the Offering. There can be no assurance that the Expansion will be completed as proposed or at all.

"The Sweden Expansion represents an incredible scaling opportunity for HIVE," commented Harry Pokrandt, President, CEO and a Director. "It will achieve major growth in hashpower capacity, our core business and the key infrastructure underlying blockchain technology. The new facilities will utilize the latest hardware, custom-designed by Genesis. Their expertise minimizes execution risk, enabling HIVE to benefit from a rapid speed to market and increased momentum."

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 cryptocurrency mining facilities in Iceland, which produce mined cryptocurrency like Ethereum around the clock.

For more information and to register to HIVE's mailing list, please visit www.HIVEblockchain.com, which has recently been updated. Follow @HIVEblockchain on Twitter and subscribe to HIVE's YouTube channel.

On Behalf Of HIVE Blockchain Technologies Ltd.

Harry Pokrandt, President, CEO and Director

The Exchange has in no way passed upon the merits of the acquisition and has neither approved nor disapproved the contents of this news release. Neither the Exchange nor its Regulation Services Provider (as that term is defined in policies of the 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 completion of the Offering; construction and acquisition of the Expansion at the Sweden Data Centre; the quantum increase of hashpower as a result of the Expansion of the Sweden Data Centre; 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, risks related to completing the Offering (including regulatory approval); the construction, acquisition and operation of the Expansion at the Sweden Data Centre; the ongoing partnership with Genesis; hashpower may not increase as currently anticipated; the cryptocurrency market; the Company's ability to successfully mine cryptocurrency; and other related risks as more fully set out in the Filing Statement of the Company dated September 13, 2017.

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 Offering and the Expansion; the Company's ongoing partnership with Genesis; historical prices of cryptocurrencies and the ability of the Company to mine cryptocurrencies 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.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.

Contact Information:

Harry Pokrandt
(604) 609-6110