Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 148

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 148
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 number of major suppliers of bitcoin mining hardware
globally, and a significant amount of bitcoin mining hardware manufacturing is located in China. Mining hardware manufacturers
may fail to supply the mining hardware due to their inability to manufacture sufficient mining hardware, whether due to shortages
of components or resources such as semiconductors, or changes of

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laws and trade restrictions (including export/import restrictions, quotas
or tariffs), or due to insolvency, or non-performance or default on their contracts. Trade policies such as export/import restrictions,
quotas or tariffs may reduce the ability of bitcoin mining hardware suppliers to supply miners with bitcoin mining hardware or
create a shortage or lack of components necessary for their manufacture or repair. If bitcoin miners are unable to source mining
hardware from those suppliers (for example due to overwhelming global demand for bitcoin miners, or due to trade restrictions,
or other causes) at commercially reasonable prices, or at all, and replacement or substitute sources of bitcoin mining hardware
prove to be unavailable, there could be a negative impact on bitcoin mining globally. These could affect the Bitcoin network by
making it more difficult for transactions to be confirmed, increase transaction costs, or affect the Bitcoin network’s security,
among other negative effects, any of which could negatively affect the value of bitcoin and consequently the Shares. 

Further, the first-generation application specific integrated circuit
(“ASIC”) chips and other critical components for mining equipment may be subject to price fluctuations or shortages.
For example, the ASIC chip is the key component of a mining machine as it determines the efficiency of the device. The production
of ASIC chips typically requires highly sophisticated silicon wafers, which currently only a small number of fabrication facilities,
or wafer foundries, in the world are capable of producing. There have been previous microchip shortages which led to price fluctuations
and disruption in the supply of key bitcoin mining hardware components. ASIC chips have recently been subject to supply and demand
fluctuations, significant price increases and shortages. Shortages of ASIC chips could create problems in the supply chain for
bitcoin mining equipment, negatively affecting the Bitcoin network by making it more difficult for transactions to be confirmed
or increasing transaction costs, or even affecting network security, which again could cause the value of bitcoin and the Shares
to decline.

Due to the unregulated nature and lack of transparency surrounding
the operations of bitcoin trading platforms, which may be subject to regulation in a relevant jurisdiction, but may not be complying,
they may experience fraud, manipulation, security failures or operational problems