Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 178

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 178
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 fork could be introduced
by an unintentional, unanticipated software flaw in the multiple versions of otherwise compatible software miners and users run.
It is also possible that, in a future accidental or unintentional fork, a substantial number of users and miners could adopt an
incompatible version of the digital asset while resisting community-led efforts to merge the two blockchains, resulting in a permanent
fork. Any of these events could cause bitcoin to decline in value.

Furthermore, a hard fork can lead to new
security concerns. For example, when the Ethereum and Ethereum Classic networks split in July 2016, replay attacks, in which transactions
from one network were rebroadcast to nefarious effect on the other network, plagued digital assets exchanges through at least
October 2016. A digital assets exchange announced in July 2016 that it had lost 40,000 Ether Classic, worth about $100,000 at
that time, as a result of replay attacks. Another possible result of a hard fork is an inherent decrease in the level of security
due to significant amounts of mining power remaining on one network or migrating instead to the new forked network. After a hard
fork, it may become easier for an individual miner or mining pool’s hashing power to exceed 50% of the processing power
of the network that retained or attracted less mining power, thereby making digital assets that rely on that network, which could

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include bitcoin, more susceptible to attack.
Any of these events could cause the Bitcoin network to be less attractive to potential users, or cause a decline in speculative
interest, and thereby cause bitcoin to decline in value.

Forks have occurred already to the Bitcoin
network, including, but not limited to, forks resulting in the creation of Bitcoin Cash (August 1, 2017), Bitcoin Gold (October
24, 2017) and Bitcoin SegWit2X (December 28, 2017), among others. The only crypto asset to be held by the Trust will be bitcoin.
The Trust has adopted procedures to address situations involving a fork that results in the issuance of new alternative bitcoin
that the Trust may receive. Typically, the holder of bitcoin has no discretion in a hard fork; it merely has the right to claim
the new forked asset on a pro rata basis while it continues to hold the same number of bitcoin.

We refer to the right to receive any benefits
arising from a fork, airdrop (defined below), or similar event as an Inc