Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 146

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 146
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 to suffer
losses. Moreover, there can be no assurance that political dynamics and sentiments toward the digital asset industry, or market
perceptions of those sentiments, will not unfavorably shift over time.

On March 6, 2025, President Trump issued an executive order for the
“Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile” (the “Order”).
The Order requires the Secretary of the U.S. Department of Treasury to establish two offices to administer and maintain a “Strategic
Bitcoin Reserve” (the “Bitcoin Reserve”) and a U.S. Digital Asset Stockpile (the “Digital Asset Stockpile”),
respectively. The Bitcoin Reserve will be capitalized with bitcoin forfeited as part of U.S. criminal or civil proceedings or in
satisfaction of penalties imposed by executive agencies. The Digital Asset Stockpile will be capitalized initially with other digital
assets forfeited as part of criminal or civil asset forfeiture proceedings. This development has led to expectations within the
bitcoin market that the United States may begin acquiring and holding bitcoin. The Order directs the Secretaries of the U.S. Treasury
Department and the U.S. Department of Commerce to develop budget-neutral strategies for acquiring additional bitcoin for the Bitcoin
Reserve. Legislation has been introduced in the U.S. Senate and the U.S. House of Representatives, which would direct the acquisition
of one million bitcoin by the federal government over a five-year period, which would be held in trust in secure storage by the
U.S. Treasury. The bill proposes to fund the bitcoin acquisition using remittances from the Federal Reserve, revaluations of Federal
Reserve gold certificates, and other funding mechanisms. Bills have also been introduced in several state legislatures to authorize
the acquisition of bitcoin by state governments or their instrumentalities, some of which have failed to pass. If now or in the
future, the U.S. federal government or any state government or any instrumentality thereof does not announce bitcoin acquisition
plans or does announce such plans, but these plans fall short of market expectations, the price of bitcoin may decline, which may
impact Share value. Even if government acquisitions occur or if legislation requiring acquisitions is enacted, the price of bitcoin
may decline if there are implementation challenges, unexpected difficulties, policy or legal reversals, any of which may negatively
impact Share value. Further, executive orders, such as the Order, are subject to change and can be reversed or overturned. The
enduring existence and size of the Bitcoin