Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 216

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1
Chunk 216
---
 – certain previous versions of the Bitcoin Core client remain operable,
and it remains interoperable with other clients, such as Bitcoin Knots. Some participants have expressed concerns that such changes
could facilitate the inclusion of illegal or non-transaction-related content on the Bitcoin Blockchain, or introduce new or unknown
software vulnerabilities. In response, certain miners and users have reportedly adopted alternative client software implementations
to access the Bitcoin network, such as Bitcoin Knots. There is a risk that unresolved divisions could lead to community fragmentation
which, if they grew severe enough and were not resolved, eventually a future Bitcoin network hard fork, which may adversely affect
the security or stability of the Bitcoin network (such as if miners leave the original Bitcoin network for the forked network),
reduce or impede the adoption of bitcoin overall, or cause bitcoin or the Shares to lose value.

We refer to the right to receive any benefits arising from a fork, airdrop
(defined below), or similar event as an Incidental Right and any such virtual currency acquired through an Incidental Right as
IR Virtual Currency. The Trust has adopted the following procedures to address situations involving any fork, airdrop or similar
event that results in the issuance of Incidental Rights or IR Virtual Currency that the Trust may receive. The Trust Agreement
stipulates that if a fork occurs, the Sponsor shall determine which asset constitutes bitcoin and which network constitutes the
Bitcoin network, and the Sponsor will as soon as possible cause the Trust to irrevocably abandon the Incidental Rights or IR Virtual
Currency. Because the Trust will abandon any Incidental Rights and IR Virtual Currency, the Trust would not receive any direct
or indirect consideration for the Incidental Rights or IR Virtual Currency and

27

thus the value of the Shares will not reflect the value of the Incidental
Rights or IR Virtual Currency. In the event the Trust seeks to change this position, an application would need to be filed with
the SEC by the Exchange seeking approval to amend its listing rules to permit the Trust to distribute the Incidental Rights or
IR Virtual Currency that is not bitcoin in-kind to the Sponsor, as agent for the Shareholders, and the Sponsor would arrange to
sell or otherwise dispose of the Incidental Rights or IR Virtual Currency and for the proceeds (if any) to be distributed to the
Shareholders. There can be no assurance as to whether or when the Sponsor would make such a decision, or when the Exchange will
seek or obtain this approval, if at all.

In