Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 183

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 183
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 collective processing power on the Bitcoin network, which would adversely affect the confirmation process for transactions
(i.e., temporarily decreasing the speed at which blocks are added to the Bitcoin Blockchain until the next scheduled adjustment
in difficulty for block solutions). If a reduction in processing power occurs, the Bitcoin network may be more vulnerable to a
malicious actor obtaining control in excess of fifty percent (50%) of the processing power on the Bitcoin network, which would
enable them to manipulate the Bitcoin Blockchain and hinder transactions. Any reduction in confidence in the transaction confirmation
process or processing power of the Bitcoin network may adversely affect an investment in the Trust.

Blockchain technologies are based on
theoretical conjectures as to the impossibility of solving certain cryptographical puzzles quickly. These premises may be incorrect
or may become incorrect due to technological advances.

Blockchain technologies are premised on
theoretical conjectures as to the impossibility, in practice, of solving certain mathematical problems quickly. Those conjectures
remain unproven, however, and mathematical or technological advances could conceivably prove them to be incorrect. Blockchain
technology companies may also be negatively affected by cryptography or other technological or mathematical advances, such as
the development of quantum computers with significantly more power than computers presently available, that undermine or vitiate
the cryptographic consensus mechanism underpinning the Bitcoin Blockchain and other distributed ledger protocols. If either of
these events were to happen, markets that rely on blockchain technologies, such as the Bitcoin network, could quickly collapse,
and an investment in the Trust may be adversely affected.

Currently, there is relatively small
use of bitcoin in the retail and commercial marketplace in comparison to relatively large use by speculators and those perceiving
bitcoin as a store of value, thus contributing to price volatility that could adversely affect an investment in the Trust.

Certain merchants and major retail and
commercial businesses have only recently begun accepting bitcoin and the Bitcoin network as a means of payment for goods and services.
Consumer use of bitcoin to pay such retail and commercial outlets, however, remains limited. Yet, market speculators and investors
seeking to profit from the short- or long-term holding of bitcoin generate a significant portion of demand for bitcoin, which
can contribute to price volatility, which in turn can make bitcoin less attractive to merchants and commercial parties as a means
of payment. A lack of expansion by bitcoin into retail and commercial markets or a contraction of such use may result in a reduction
in the price of bitcoin, which could adversely affect an investment in the Trust.

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