Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 448

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part II, Item 1
Chunk 448
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80-95% of bitcoin trading
volume on trading venues was false or non-economic in nature, with specific focus on currently unregulated exchanges located outside of
the United States. The SEC also alleged as part of its June 2023 complaint that Binance Holdings Ltd. committed strategic and
targeted “wash trading” through its affiliates to artificially inflate the volume of certain digital assets traded on its
exchange. Such reports and allegations may indicate that the bitcoin market is significantly smaller than expected and that the United States
makes up a significantly larger percentage of the bitcoin market than is commonly understood. Any actual or perceived false trading in
the bitcoin market, and any other fraudulent or manipulative acts and practices, could adversely affect the value of our bitcoin. Negative
perception, a lack of stability in the broader bitcoin markets and the closure, temporary shutdown or operational disruption of bitcoin
trading venues, lending institutions, institutional investors, institutional miners, custodians, or other major participants in the bitcoin
ecosystem, due to fraud, business failure, cybersecurity events, government-mandated regulation, bankruptcy, or for any other reason,
may result in a decline in confidence in bitcoin and the broader bitcoin ecosystem and greater volatility in the price of bitcoin. For
example, in 2022, each of Celsius Network, Voyager Digital, Three Arrows Capital, FTX Trading, and BlockFi filed for bankruptcy, following
which the market prices of bitcoin and other digital assets significantly declined. In addition, in June 2023, the SEC announced
enforcement actions against Coinbase, Inc., and Binance Holdings Ltd., two providers of large trading venues for digital assets, which
similarly was followed by a decrease in the market price of bitcoin and other digital assets. These were followed in November 2023,
by an SEC enforcement action against Kraken, another large trading venue for digital assets. As the price of our common stock is affected
by the value of our bitcoin holdings, the failure of a major participant in the bitcoin ecosystem could have a material adverse effect
on the market price of our common stock.

The concentration of our bitcoin holdings will enhance the risks
inherent in our bitcoin treasury strategy.

We intend to use the net proceeds from the Committed Equity Facility
to purchase bitcoin and we may increase our overall holdings of bitcoin in the future. Once we complete the planned acquisition of bitcoin,
a substantial majority of our treasury holdings could be bitcoin. The concentration of our bitcoin holdings may limit the risk mitigation
that