HIVE Blockchain Restates Previously Issued Financial Statements Based on Non-Cash Valuation of 25,000 Ethereum Investments

Time:2022-01-07 Source: 857 views Trending Copy share

HIVE Blockchain Technologies Ltd. (TSXV: HIVE) (Nasdaq: HIVE) (FSE: HBF) (the "Company" or "HIVE") has announced that the previously issued financial statements for the interim period ended June 30, 2021 and 2020 and the corresponding management's discussion and analysis (collectively, the "Original Documents") have been restated and reissued (collectively, the "Restated Documents") and filed under the Company's profile on www.sedar.com. An incorrect mark-to-market value relied upon in the Original Documents caused the coin inventory of 25,000 Ethereum to be higher and, as a result, the Company's profit, to be overstated by approximately US$5.0 million. Revenue as reported for the quarter remains unchanged. Earnings are comprised of two major components, cash flow from operations and changes in liquid investments like stocks, bonds and digital assets such Bitcoin (BTC) and Ethereum (ETH). The earnings reported from operations have not changed however the price used to value the 25,000 ETH coins in our cold wallet have been restated and reduced by US$200 per ETH coin, which amount is expected to be fully recovered in the following quarter ended September 2021 due to an increase in the mark-to-market value of ETH coins.

The effect of the restatement does not impact the Company's ongoing operations, revenue from digital currency mining, equipment or other assets. The restatement is a non-cash charge and will not affect the Company's positive operating results. The inventory of cryptocurrency coins held at June 30, 2021 remains unchanged as reported and unaffected. The inventory of ETH remains the same for the following quarter while the BTC inventory has increased during the July to September calendar quarter 2021.

Details of the changes are fully described in Note 27 to the restated condensed interim consolidated financial statements for the three months ended June 30, 2021 and 2020 as filed on SEDAR on October 25, 2021.

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