Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 130

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 3
Chunk 130
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 be handled on-chain and enabling so-called second layer solutions, such as the Lightning Network or payment channels,
    that have the potential to increase transaction throughput by processing certain transactions outside the main Bitcoin Blockchain,
    but which may fail to achieve the expected benefits or widespread adoption or lead to new or unanticipated problems, leading
    to a decline in public support for, and the price of, bitcoin.

    ●
    As of the date of this Report, the largest 100 bitcoin wallets held
    a substantial amount of the outstanding supply of bitcoin and it is possible that some of these wallets are controlled by
    the same person or entity. Moreover, it is possible that other persons or entities control multiple wallets that collectively
    hold a significant number of bitcoin, even if each wallet individually only holds a small amount. As a result of this concentration
    of ownership, large sales by such holders could have an adverse effect on the market price of bitcoin.

    ●
    Governance of the Bitcoin network is by voluntary consensus and open
    competition. As a result, there may be a lack of consensus or clarity on the governance of the Bitcoin network, which may
    stymie the Bitcoin network’s utility and ability to grow and face challenges. In particular, it may be difficult to
    find solutions or martial sufficient effort to overcome any future problems on the Bitcoin network, especially long-term problems.

    ●
    Over the past decade, bitcoin mining operations have evolved from
    individual users mining with computer processors, graphics processing units and first-generation application specific integrated
    circuit (“ASIC”) machines to “professionalized” mining operations using proprietary hardware or sophisticated
    machines. If the profit margins of bitcoin mining operations are not sufficiently high, including, but not limited to, due
    to an increase in electricity costs or a decline in the market price of bitcoin, or if bitcoin mining operations are unable
    to arrange alternative sources of financing (e.g., if lenders refuse to make loans to such miners), bitcoin miners are more
    likely to sell more bitcoins than they otherwise would, resulting in an increase in liquid supply of bitcoin, which would
    generally tend to reduce bitcoin’s market price.

    ●
    To the extent that any miners cease to record transactions that do
    not include the payment of a transaction fee in solved blocks or do not record a transaction because the transaction fee is
    too low, such transactions will not be recorded on the Bitcoin Blockchain until a block is mined by a miner who does