Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 96

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 96
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, in which transactions from one network were
rebroadcast to nefarious effect on the other network, plagued digital assets exchanges through at least October 2016. A digital
assets exchange announced in July 2016 that it had lost 40,000 Ether Classic, worth about $100,000 at that time, as a result of
replay attacks. Another possible result of a hard fork is an inherent decrease in the level of security due to significant amounts
of mining power remaining on one network or migrating instead to the new forked network. After a hard fork, it may become easier
for an individual miner or mining pool’s hashing power to exceed 50% of the processing power of the network that retained
or attracted less mining power, thereby making digital assets that rely on that network, which could include bitcoin, more susceptible
to attack. Any of these events could cause the Bitcoin network to be less attractive to potential users, or cause a decline in
speculative interest, and thereby cause bitcoin to decline in value.

Forks have occurred already to the Bitcoin network, including, but not
limited to, forks resulting in the creation of Bitcoin Cash (August 1, 2017), Bitcoin Gold (October 24, 2017) and Bitcoin SegWit2X
(December 28, 2017), among others. The only crypto asset to be held by the Trust will be bitcoin. The Trust has adopted procedures
to address situations involving a fork that results in the issuance of new alternative bitcoin that the Trust may receive. Typically,
the holder of bitcoin has no discretion in a hard fork; it merely has the right to claim the new forked asset on a pro rata basis
while it continues to hold the same number of bitcoin.

There have been other contentious disputes over changes to the Bitcoin
network’s source code, so far these have not led to hard forks. For example, the predominant software implementation used to access
the Bitcoin network is Bitcoin Core. The October 2025 release of the updated Bitcoin Core client (version 30) removed a long-standing
limit on the inclusion of non-transaction-related data in blocks, the effect of which is to permit larger amounts of arbitrary
data to be embedded in transactions. This change has prompted debate within the bitcoin community, though – because the change
is backwards-compatible, rather than a hard fork – certain previous versions of the Bitcoin Core client remain operable,
and it remains interoperable with other clients, such as Bitcoin Knots.