Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 92

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 92
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, there could be a negative impact on bitcoin mining globally. These could affect the Bitcoin network by
    making it more difficult for transactions to be confirmed, increasing transaction costs, or affecting the Bitcoin network’s
    security, among other negative effects, any of which could negatively affect the value of bitcoin and consequently the Shares.

    ●
    Many digital asset networks, including the Bitcoin network, face significant
    scaling challenges and may periodically be upgraded with various features designed to increase the speed and throughput of
    digital asset transactions. These attempts to increase the volume of transactions may not be effective, and such upgrades
    may fail, resulting in potentially irreparable damage to the Bitcoin network and to the value of bitcoin.

    ●
    The open-source structure of many digital asset network protocols,
    such as the protocol for the Bitcoin network, means that developers and other contributors are generally not directly compensated
    for their contributions in maintaining and developing such protocols. As a result, the developers and other contributors of
    a particular digital asset may lack a financial incentive to maintain or develop the network or may lack the resources to
    adequately address emerging issues. Alternatively, some developers may be funded by companies whose interests are at odds
    with other participants in a particular digital asset network. A failure to properly monitor and upgrade the protocol of the
    Bitcoin network could damage that network.

    ●
    In the past, flaws in the source code for digital assets have been
    exposed and exploited, including flaws that disabled some functionality for users, exposed users’ personal information
    and/or resulted in the theft of users’ digital assets. The cryptography underlying bitcoin could prove to be flawed
    or ineffective, or developments in mathematics and/or technology, including advances in digital computing, algebraic geometry
    and quantum computing, could result in such cryptography becoming ineffective. Quantum computing technology is an emerging
    phenomenon which, because it is still developing, makes it difficult to predict its ultimate effect on the future value of
    bitcoin and other digital assets. However, if quantum computing technology

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    is able to advance and significantly increase its capacity relative to the capacity of today’s
    leading quantum computers, it could potentially undermine the viability of many of the cryptographic algorithms used across
    the world’s information technology infrastructure, including the cryptographic algorithms used for digital assets like
    bitcoin. Advances in quantum computing create the risk that the cryptography underlying the Bitcoin network could become ineffective,
    which, if realized, could compromise the security of the