Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 131

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 3
Chunk 131
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 not require
    the payment of transaction fees or is willing to accept a lower fee. Any widespread delays in the recording of transactions
    could result in a loss of confidence in a digital asset network.

    ●
    Digital asset mining operations can consume significant amounts of
    electricity, which may have a negative environmental impact and give rise to public opinion against allowing, or government
    regulations restricting, the use of electricity for mining operations. Additionally, miners may be forced to cease operations
    during an electricity shortage or power outage, or if electricity prices increase where the mining activities are performed.

    ●
    There are a small 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 due to default, insolvency, or changes of laws and trade restrictions
    (including export/import restrictions, quotas or tariffs). 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, increasing transaction costs, or affecting the Bitcoin network’s
    security, among other negative effects, any of which could negatively affect the value of bitcoin and consequently the Shares.

    ●
    Many digital asset networks, including the Bitcoin network, face significant
    scaling challenges and may periodically be upgraded with various features designed to increase the speed and throughput of
    digital asset transactions. These attempts to increase the volume of transactions may not be effective, and such upgrades
    may fail, resulting in potentially irreparable damage to the Bitcoin network and to the value of bitcoin.

    ●
    The open-source structure of many digital asset network protocols,
    such as the protocol for the Bitcoin network, means that developers and other contributors are generally not directly compensated
    for