Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 186

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 186
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 confirm any specific transaction, but they are economically incentivized to confirm valid
transactions as a means of collecting fees. To the extent that any miners cease to record transactions in solved blocks, such
transactions will not be recorded on the Bitcoin Blockchain until a block is solved by a miner who does not require the payment
of transaction fees. Miners have historically accepted relatively low transaction confirmation fees, because miners have a low
marginal cost of validating unconfirmed transactions. If miners demand higher transaction fees for recording transactions in the
Bitcoin Blockchain or a software upgrade automatically charges fees for all transactions on the Bitcoin network, the cost of using
bitcoin may increase and global markets may be reluctant to accept bitcoin as a means of payment. If miners collude in an anticompetitive
manner to reject low transaction fees, then bitcoin users could be forced to pay higher fees, thus reducing the attractiveness
of the Bitcoin network, or to wait longer times for their transactions to be validated by a miner who does not require the payment
of a transaction fee. Bitcoin mining occurs globally and it may be difficult for authorities to apply antitrust regulations across
multiple jurisdictions. Any collusion among miners may adversely impact an investment in the Trust or the ability of the Trust
to operate. Higher transaction confirmation fees resulting through collusion or otherwise may adversely affect the attractiveness
of the Bitcoin network, the value of bitcoin and the value of the Shares.

As technology advances, miners may be
unable to acquire the digital asset mining hardware necessary to develop and launch their operations. A decline in the bitcoin
mining population could adversely affect the Bitcoin network and an investment in the Trust.

Due to the increasing demand for digital
asset mining hardware, miners may be unable to acquire the proper mining equipment or suitable amount of equipment necessary to
continue their operations or develop and launch their operations. In addition, because successful mining of a digital asset that
uses “proof of work” validation requires maintaining or exceeding a certain level of computing power relative to other
validators, miners will need to upgrade their mining hardware periodically to keep up with their competition. The development
of supercomputers with disproportionate computing power may threaten the integrity of the bitcoin market by concentrating mining
power, which would make it unprofitable for other miners to mine. The expense of purchasing or upgrading new equipment may be
substantial and diminish returns to miners dramatically. A decline in miners may result in a decrease in the value of bitcoin
and the value of the Trust.

If profit margins of Bitcoin Mining
Operations are