Dear BMN2 Holders,

We are writing to update you on operations, our strategic direction, and an early liquidity option now available to all noteholders.

Capitalised terms used but not otherwise defined in this communication have the meanings given to them in the Blockstream Mining Notes (BMN2) Terms and Conditions dated 18 July 2024 (as amended on 1 October 2025) and the related Offering Supplement(s).

Corporate Structure

Blockstream Mining LLC owns two mining sites and provides their hashrate to Exacore LLC. It was spun out from Blockstream Inc. in August 2024 (Announcement) with separate management, its own balance sheet, and independent governance. While Adam Back retains a minority ownership interest, Blockstream Mining LLC is independently governed and managed — he holds no operational or management role in the entity.

Exacore is Blockstream Mining's engineering, procurement, and operations partner. It operates Blockstream Mining's two sites, combines that hashrate with capacity from its own additional infrastructure, and delivers the required hash rate to BMN Operations LLC under a hashrate services contract.

BMN Operations LLC is the counterparty responsible for providing hashrate under the hashrate contract that supports BMN2. It receives hashrate from Exacore LLC and administers the Bitcoin yield generated.

Blockstream Inc. is a separate company with separate ownership, operations, and balance sheet. It holds no equity in Blockstream Mining LLC, Exacore LLC, or BMN Operations LLC, has no financial obligation to BMN2 holders, no operational role in mining, and no claim on Blockstream Mining's revenue, assets, or infrastructure. The companies share a name for historical reasons only.

Bitcoin Standard Treasury (BSTR) is an unrelated company with its own ownership, operations, and balance sheet. It has no involvement and holds no equity in Blockstream Mining LLC, Exacore LLC, or BMN Operations LLC — and none of those entities hold equity in BSTR. It has no financial obligation to BMN2 holders, no operational role in mining, and no claim on Blockstream Mining's revenue, assets, or infrastructure.

Industry Update

Network difficulty currently sits at 124.93T, implying a hash rate of approximately 894 EH/s — a 23% decline from the October 2025 peak of ~1,160 EH/s, and the largest sustained drawdown since China's 2021 mining ban. But unlike that forced exodus, this pullback is driven by voluntary economic reallocation as miners pivot to AI and HPC:

Bitfarms (now "Keel Infrastructure") — halted all new Bitcoin mining investment
Core Scientific — repositioned as HPC operator ($1B Morgan Stanley backing)
IREN (formerly Iris Energy) — $9.7B Microsoft AI agreement
Hut 8 — $7B Google-backed AI infrastructure deal
TeraWulf — leasing 70+ MW to HPC clients
Riot Platforms — redirecting significant capacity to AI

Up to 20% of total mining power capacity may be permanently repurposed by year-end of 2027. Fewer competitors means more Bitcoin per megawatt for those who remain.

Performance & Operations

As of 18 June, 2026 BMN2 is 45% through its 4-year term (Day 651 of 1,460), with maturity on September 4, 2028. As of 18 June, 2026, each BMN2 token has mined 0.334 BTC (approximately $21,500 at current prices), with a current estimated value of $47,700 per BMN2 Note.

The combined infrastructure of Exacore with Blockstream Mining comprises 385 MW of operational capacity and an additional 75 MW under active construction across 18 sites in Texas and Canada, with over 230,000 ASICs deployed and in inventory. An additional 1,200 MW of expansion capacity is in various stages of development with site control and infrastructure access secured.

Public verification is available through two sources:

exacore.com/sites — Exacore's site portfolio detailing all active mining facilities owned and operated by Exacore across Texas and Canada. Exacore builds, owns and operates the physical mining infrastructure.
bmn2.mining.blockstream.com — Blockstream Mining's BMN2 dashboard displays hashrate production data for the mining fleet allocated to BMN2 token holders.

Looking Ahead: Energy Generation

Exacore is expanding from grid-connected mining into owned energy generation, developing over 1 GW of power generation capacity across natural gas and utility-scale solar projects. This is a fundamental shift in cost structure — moving from purchasing power to producing it.

The blended power cost of Blockstream Mining and Exacore is under $0.04/kWh. Owned generation will reduce this further while eliminating exposure to grid price volatility and curtailment risk. Generation assets also typically create long-duration infrastructure value independent of Bitcoin price cycles — they are generally expected to have 20-30 year operational lives and intrinsic value regardless of mining economics.

For BMN2 holders, this means your hashrate will increasingly be powered by some of the lowest-cost energy in North America — with the objective of improving the operating economics of every petahash underlying your note.

What's Ahead

BMN2 is scheduled to mature in September 2028. Between now and then, we expect to complete our fleet upgrade to next-generation hardware, bring the first phase of owned generation online, and continue delivering hashrate daily. We will provide updates on progress.

We look forward to what's ahead — for the network, for this operation, and for our investors.

Updates