Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 395

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 4
Chunk 395
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 the Company has purchased $2.0 million of Bitcoin as part of the Company’s ongoing
treasury strategy, representing 16.51 Bitcoins.

Due to the currently unregulated nature and lack of transparency
surrounding the operations of many bitcoin trading venues, bitcoin trading venues may experience greater fraud, security failures or regulatory
or operational problems than trading venues for more established asset classes, which may result in a loss of confidence in bitcoin trading
venues and adversely affect the value of our bitcoin.

Bitcoin trading venues are relatively new and, in many cases, currently
unregulated. Even if regulated, such venues may not be complying with such regulations. Furthermore, there are many bitcoin trading venues
that do not provide the public with significant information regarding their ownership structure, management teams, corporate practices
and regulatory compliance. As a result, the marketplace may lose confidence in bitcoin trading venues, including prominent exchanges that
handle a significant volume of bitcoin trading and/or are subject to regulatory oversight, in the event one or more bitcoin trading venues
cease or pause for a prolonged period the trading of bitcoin or other digital assets, or experience fraud, significant volumes of withdrawal,
security failures or operational problems.

54

In 2019 there were reports claiming that 80-95% of bitcoin trading
volume on trading venues was false or non-economic in nature, with specific focus on currently unregulated exchanges located outside of
the United States. The SEC also alleged as part of its June 2023 complaint that Binance Holdings Ltd. committed strategic and
targeted “wash trading” through its affiliates to artificially inflate the volume of certain digital assets traded on its
exchange. Such reports and allegations may indicate that the bitcoin market is significantly smaller than expected and that the United States
makes up a significantly larger percentage of the bitcoin market than is commonly understood. Any actual or perceived false trading in
the bitcoin market, and any other fraudulent or manipulative acts and practices, could adversely affect the value of our bitcoin. Negative
perception, a lack of stability in the broader bitcoin markets and the closure, temporary shutdown or operational disruption of bitcoin
trading venues, lending institutions, institutional investors, institutional miners, custodians, or other major participants in the bitcoin
ecosystem, due to fraud, business failure, cybersecurity events, government-mandated regulation, bankruptcy, or for any other reason,
may result in a decline in confidence in bitcoin and the broader bitcoin ecosystem and greater volatility in the price of bitcoin. For
example, in