Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 396

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 4
Chunk 396
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 2022, each of Celsius Network, Voyager Digital, Three Arrows Capital, FTX Trading, and BlockFi filed for bankruptcy, following
which the market prices of bitcoin and other digital assets significantly declined. In addition, in June 2023, the SEC announced
enforcement actions against Coinbase, Inc., and Binance Holdings Ltd., two providers of large trading venues for digital assets, which
similarly was followed by a decrease in the market price of bitcoin and other digital assets. These were followed in November 2023,
by an SEC enforcement action against Kraken, another large trading venue for digital assets. As the price of our common stock is affected
by the value of our bitcoin holdings, the failure of a major participant in the bitcoin ecosystem could have a material adverse effect
on the market price of our common stock.

The concentration of our bitcoin holdings will enhance the risks
inherent in our bitcoin treasury strategy.

We intend to use the net proceeds from the Committed Equity Facility
to purchase bitcoin and we may increase our overall holdings of bitcoin in the future. Once we complete the planned acquisition of bitcoin,
a substantial majority of our treasury holdings could be bitcoin. The concentration of our bitcoin holdings may limit the risk mitigation
that we could take advantage of by purchasing a more diversified portfolio of treasury assets, and the absence of diversification enhances
the risks inherent in our bitcoin treasury strategy. Any future significant declines in the price of bitcoin would have a more pronounced
impact on our financial condition than if we used our cash to purchase a more diverse portfolio of assets.

The emergence or growth of other digital assets, including those
with significant private or public sector backing, could have a negative impact on the price of bitcoin and adversely affect our financial
condition and results of operations.

As a result of our bitcoin treasury strategy, a substantial amount
of our cash could be concentrated in our bitcoin holdings. Accordingly, the emergence or growth of digital assets other than bitcoin may
have a material adverse effect on our financial condition. While bitcoin is the largest digital asset by market capitalization as of the
date of this Report, there are numerous alternative digital assets and many entities, including consortiums and financial institutions,
are researching and investing resources into private or permissioned blockchain platforms or digital assets that do not use proof-of-work
mining like the bitcoin network. For example, in late 2022, the ethereum network transitioned to a “proof-of-stake” mechanism
for validating transactions that requires significantly less computing power than proof-of