Company: HODL
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0000930413-25-001795
Chunk: 13

Company: VanEck Bitcoin ETF
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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The Trust issues and redeems Shares only in aggregations
of 25,000 Shares, a Basket, or integral multiples thereof, and only in transactions with Authorized Participants.

Shares of the Trust trade on the Exchange under the ticker
symbol “HODL.”

Computation of Net Asset Value

The Trust’s NAV is calculated based on the Trust’s
net asset holdings as reconciled to the Bitcoin Custodians’ accounts on a market approach, determined on a daily basis in
accordance with the MarketVectorTM Bitcoin Benchmark Rate price at 4:00 p.m. EST. The Trust’s NAV per Share is
calculated by taking the current market value of its total assets, subtracting any liabilities, and then dividing that total by
the total number of outstanding Shares. The Trust Agreement gives the Sponsor the exclusive authority to determine the Trust’s
NAV and the Trust’s NAV per Share, which it has delegated to the Administrator.

11

Liquidity

The Trust is not aware of any trends, demands, conditions or
events that are reasonably likely to result in material changes to its liquidity needs. In exchange for a fee, the Sponsor has
agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period
covered by this report was the Sponsor’s Fee. The Trust’s only source of liquidity is its sales of bitcoin.

Significant Accounting Policies

In preparing financial statements in conformity with accounting
principles generally accepted in the United States of America (“GAAP”), management makes estimates and assumptions
that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the
financial statements, as well as the reported amount of revenue and expenses reported during the period. Actual results could differ
from these estimates. A description of the valuation of bitcoin, a critical accounting policy that the Trust believes is important
to understanding its results of operations and financial position, is provided in the section entitled “Computation of Net
Asset Value” above. In addition, please refer to Note 2 to the Financial Statements included in this report for further discussion
of the Trust’s accounting policies.

Results of Operations

The Quarter Ended March 31, 2024 (a)

The Trust’s net asset value increased from $100,000 at
December 31, 2023 to $619,050,028 at March 31, 2024, a 618,950% increase. The increase in