Investor Presentation - September 2018 - BLOCKCHAIN TECHNOLOGIES LTD - TSXV: HIVE OTC: HVBTF - HIVE Blockchain ...
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TSXV: HIVE OTC: HVBTF
BLOCKCHAIN TECHNOLOGIES LTD.
Investor Presentation – September 2018
1
TSXV: HIVE OTC: HVBTF
Forward Looking Statements
Except for the statements of historical fact, this presentation contains “forward-looking The forward-looking information in this presentation reflects the current expectations,
information” (within the meaning of the applicable Canadian securities legislation) that assumptions and/or beliefs of the Company based on information currently available to
is based on expectations, estimates and projections of the Company and Genesis Mining the Company. In connection with the forward-looking information contained in this
as of May 2018. The information in this presentation about the completion of any presentation, the Company has made assumptions, including, but not limited to
transaction including acquisition, expansion and construction of any data centres, the assumptions about the Company’s and Genesis Mining's ability to complete any
business goals and objectives of the Company, any estimate of potential earnings, and contemplated transactions, about historical prices of cryptocurrencies and the ability of
other forward-looking information, includes but is not limited to information the Company to successfully mine cryptocurrencies consistent with historical prices,
concerning the intentions, plans, and future actions of the parties to the transactions and that there will be no regulation or law that will prevent the Company from
described herein and the terms thereon. Projections relating to annualized run-rate operating its business. The Company has also assumed that no significant events occur
revenues and gross margins are subject to the assumptions contained herein including outside of the Company's normal course of business. Although the Company believes
future cryptocurrency prices, which are based upon managements best estimates but that the assumptions inherent in the forward-looking information and financial outlook
are inherently speculative and there is no guarantee that such assumptions and are reasonable, forward-looking information and financial outlook is not a guarantee of
estimates will prove to be correct. future performance and accordingly undue reliance should not be put on such
information due to the inherent uncertainty therein. Reference should be made to the
This presentation also contains “financial outlook” in the form of annualized revenues Company’s Filing Statement dated August 29, 2018 (available at www.sedar.com) for a
and gross margins, which are intended to provide additional information only and may full list of the expectations and assumptions of the Company and Genesis Mining, and a
not be an appropriate or accurate prediction of future performance, and should not be detailed description of the risk factors relating to the Company’s business.
used as such. The annualized run-rate revenues and gross margins disclosed in this Any forward-looking information speaks only as of the date on which it is made and,
presentation are based on the assumptions disclosed in this presentation and in the except as may be required by applicable securities laws, the Company disclaims any
Company’s Management Discussion and Analysis for the second quarter ended June 30, intent or obligation to update any forward-looking information, whether as a result of
2018 available on www.sedar.com, which assumptions are based upon management’s new information, future events or results or otherwise.
best estimates but are inherently speculative and there is no guarantee that such
assumptions and estimates will prove to be correct. In this presentation, “HIVE” or “Company” refers to HIVE Blockchain Technologies Ltd.
Factors that could cause actual results to differ materially from those described in such (TSXV: HIVE).
forward-looking information include, but are not limited to, risks related to the
cryptocurrency markets generally, the Company’s ability to successfully mine
cryptocurrency, and other risks as more fully set out in disclosures filed by the Company
at www.sedar.com including its Filing Statement dated August 29, 2018.
2
TSXV: HIVE OTC: HVBTF
Recognizing opportunity
requires VISION
3
3
TSXV: HIVE OTC: HVBTF
50% World’s population
using the internet
0.5% Population using
blockchain
90% European and US
banks exploring
blockchain
TSXV: HIVE OTC: HVBTF
The Explosion of Cryptocurrencies
Market Cap
of all Coins
$11.3
$573
(in billions) $1.5 $7.1 $4.0
2013 2014 2015 2016 2017
Number of
Cryptocurrencies
(> $1mm)
8 29 33 69
682
Bitcoin’s percentage
of total market cap 92.5% 92.3% 83.5% 79.5% 39%
As of September 2018, the market cap of all coins was $193B across 870 cryptocurrencies (>$1mm)
SOURCE: Coinmarketcap.com, last week of December 31 2017 each year 5
TSXV: HIVE OTC: HVBTF
Currencies Are One Application for Blockchain
“What the internet did for communications, blockchain will do for trusted transactions.” — Ginni Rometty
6
TSXV: HIVE OTC: HVBTF
Blockchain is in the Early Innings of its Evolution
Currency Utility Token Security Token
These act as stores of value Digital tokens that are Function like a common
or a means of exchange. necessary in order for share and owners of token
users to utilize the own a piece of the
Perhaps the best known underlying technology. underlying company
tokens. These are most like
fiat currencies and include Ethereum is one example. Overstock’s tZERO token
Bitcoin. is an example
7
TSXV: HIVE OTC: HVBTF
IBM and Maersk Driving Improvements With Blockchain
GLOBAL TRADING
COSTS
$136B
$1.8T
GLOBAL TRADE DIGITIZATION
8
TSXV: HIVE OTC: HVBTF
Every Company will
compete
against a
BLOCKCHAIN
VERSION
of itself
9
9
TSXV: HIVE OTC: HVBTF
Blockchain Companies Taking on the Disruptors
10% paid
to aggregators
0% fee to
use platform
Blockchain disrupting the disruptors; no centralized authority is required
10TSXV: HIVE OTC: HVBTF
We are building the
blockchain backbone
11TSXV: HIVE OTC: HVBTF
Blockchain 101
As each A miner Transactions are Each block is
transaction connects each chained together added to the next
occurs, a block to the by a miner in an irreversible
miner puts it one before chain by a miner
into a block and after it
12TSXV: HIVE OTC: HVBTF
Blockchain – Web 3.0
Why How Who
immutable technology / blockchain
trust process (ledger) expertise
Transactions/ Blockchains Building the future
Interactions
13TSXV: HIVE OTC: HVBTF
World’s Leading
Hashpower Provider
2013 2015 2016 2017
Genesis Mining was Built first large scale Built world’s largest Genesis Mining
established by three Bitcoin mining Ether mining facility entered exclusive
early Bitcoin facility in Iceland which was built partnership with
investors. using custom specifically to HIVE to offers pure
hardware. support play access to the
development of blockchain and
Ethereum Project. cryptocurrencies
14TSXV: HIVE OTC: HVBTF
Genesis is an Important Partner
DEPLOYMENT MONITORING MANAGEMENT
Genesis Hive will detect miners Provides hash rate, temperature, Can perform bulk updates, pool
and allow HIVE to reconfigure estimated power consumption and changes or setup automatic tasks
it to our needs. much more for real time analysis. according to our requirements.
GENESIS HIVE is a proprietary web interface created by Genesis Mining that enables HIVE to easily setup,
watch and manage our mining facilities. It is the ultimate control panel to manage our rigs.
15TSXV: HIVE OTC: HVBTF
How We Earn Money
Data Centres Inventory
solving award
crypto-equations
validating
fees
transactions
Profitability = { ( facility_hash_rate, power_consumption, )1
( coin_price, network_hash_rate, )2 ( cost_per_kwh )3 }
Operating in jurisdictions with LOW POWER COSTS, cold climate, and fast internet connectivity
16TSXV: HIVE OTC: HVBTF
Today:
HIVE Coin Inventory
Breakdown (US$M)
Sweden (as at June 30, 2018)
20.4 MW
$1.29
Iceland $14.78 $0.04
3.8 MW
24MW Facilities in
two countries
44.2 MW of development is fully funded
5 Transactions
since 2017
17TSXV: HIVE OTC: HVBTF
Corporate History
Maiden Transaction Announces Financing and Increases Mining Closes Oversubscribed Closes Oversubscribed
Enters LOI with Genesis Mining 2nd Acquisition Capacity by 175% Financing Financing
to acquire a 2.0MW mining Announces C$30.0M (20M Enters into legally binding letter Closes C$34.5M oversubscribed Closes C$115.0M
facility in Iceland (US$9.0M, 30% shares) bought deal. Enters LOI with Genesis to commence bought deal with Genesis oversubscribed marketed deal
of HIVE). Announces C$15.0M with Genesis to acquire 2nd facility construction on a new mining Mining subscribing for C$5.1M. with Genesis Mining subscribing
financing in Iceland (C$5M, 2M common facility in Sweden for US$22.0M. for C$3.0M.
shares)
June September September October October October November December December
14, 2017 15, 2017 21, 2017 11, 2017 23, 2017 25, 2017 14, 2017 13, 2017 29, 2017
Completes Acquisition Closes Financing and Announces Financing Announces Financing
Closes upsized C$16.5M financing Acquisition of 2nd and 2nd Facility in and Bitcoin Expansion
and acquires mining facility from Facility Sweden Announces C$100.0M (31.7M
Genesis for US$9.0M and 68.0M Closes acquisition of 2nd facility Announces C$30.0M (10.7M units) financing. Enters into
shares in HIVE. Company is in Iceland. Grows computing units). Enters into a agreement agreement with Genesis to
renamed HIVE Blockchain. power by 70%. Closes C$30M with Genesis to commence 2nd commence on a GPU / BTC
bought deal and C$7M facility in Sweden to double based mining facility in
investment by Genesis Mining HIVE’s computing power in Sweden.
18
Sweden.TSXV: HIVE OTC: HVBTF
Progress in 2018
Completes Sweden Phase 2 Completes Acquisition of Announces Upcoming Launch of
Completes construction Kolos Norway AS Cloud Based ASIC Mining Power
and increases mining capacity by ~65%. Completes agreement to acquire Announces 200 PH (~20 MW) of cloud-
all assets of Kolos Norway AS based ASIC mining power
January April May May June August
15, 2018 3, 2018 1, 2018 22, 2018 30, 2018 15, 2018
Completes Sweden Completes Significantly expands
Phase 1 Sweden Phase 3 coin inventory
Completes construction and Completes construction Held 33,000 Ethereum and
increases mining capacity by and increases mining 80,000 Ethereum Classic
~175%. Commences mining capacity by ~39%.
at the end of Q1/19
of Ethereum.
19TSXV: HIVE OTC: HVBTF
BitNEXT:
Backbone of Blockchain
20
20TSXV: HIVE OTC: HVBTF
Management
Frank Holmes Olivier Roussy Newton
Interim Executive Chairman Interim President
CEO & CIO US Global Co-Founder of HIVE
Partner at Latent Capital
21TSXV: HIVE OTC: HVBTF
Board of Directors
Frank Holmes, Chairman Bjoern Arzt Tobias Ebel
CEO and CIO, U.S. Global Investors Managing Partner, Logos Fund Managing Partner, Logos Fund
Frank is chief executive and chief Bjoern is a lawyer who has spent Tobias has more than 10 years in
investment officer at U.S. Global the last 10 years structuring the funds industry and is a
Investors, which specializes in natural asset-backed and fund structures for a specialist lawyer for legal, regulatory,
resources and emerging markets investing. He is a major European investment bank. Since 2012, he has tax, accounting, and structuring aspects of investment
regular commentator on CNBC, Bloomberg, BNN, and focused on the cryptocurrency industry and has helped funds. His work in the cryptocurrency industry and
Fox Business, and the recipient of numerous awards and to grow Genesis’ cryptocurrency mining activities. has helped to solve legal and tax problems in
accolades over his decades long career. He has developed a strong knowledge of the cryptocurrency mining and investment activities.
economics of cryptocurrency mining.
Olivier Roussy Newton Marcus New
Partner, Latent Capital Founder, InvestX Capital
Olivier is a technology entrepreneur Marcus is an entrepreneur that
and a partner at Latent Capital, an has built a number of businesses
investment fund focused on early to disrupting the capital markets. He is
mid-stage opportunities in quantum computing, financial the founder and chairman (and previously the CEO) of
technology and bioinformatics. Stockhouse Publishing and the Chief Entrepreneur of
Investx Capital Ltd, the first cross border global online
private equity and venture capital platform.
22TSXV: HIVE OTC: HVBTF
CORPORATE INFO & CAPITAL STRUCTURE
TICKER KEY SHAREHOLDERS (BASIC)
TSX.V: HIVE Genesis Mining Ltd. – 24.7%
OTC BB: HVBTF U.S. Global Investors – 3.2%
Börse Berlin AG: HBF.BE Directors & Officers – 1.4%
Börse Frankfurt: HBF.F
Source: Company Public Filings
ISSUED AND OUTSTANDING An aggregate of 68.3M shares owned by Genesis, Olivier Roussy Newton and
previous management are subject to an escrow agreement and are subject to
314M (383M Fully Diluted)
a hold period ranging from 6 – 36 months following receipt of final approvals
from the TSX Venture Exchange on September 15, 2017.
FOR MORE INFORMATON www.HIVEblockchain.com
& COMPANY UPATES:
@HIVEBlockchain
23TSXV: HIVE OTC: HVBTF
BLOCKCHAIN TECHNOLOGIES LTD.
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