Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 88

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 88
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ing Account with the Bitcoin Custodian or the Trust’s Additional Bitcoin Account with the Additional
Bitcoin Custodian could harm the Trust’s operations, result in partial or total loss of the Trust’s assets, damage
the Trust’s reputation and negatively affect the market perception of the effectiveness of the Trust, all of which could
in turn reduce demand for the Shares, resulting in a reduction in the price of the Shares. The Trust may also cease operations,
the occurrence of which could similarly result in a reduction in the price of the Shares.

The Clearing Account permits hot storage which is
less secure than cold storage.

Although the Custody Agreement requires the Bitcoin
Custodian to hold the Trust’s bitcoin in its Bitcoin Account in cold storage, bitcoin may be temporarily stored in an omnibus
hot storage wallet associated with the Trust’s Clearing Account in connection with both creations and redemptions, as well
as in connection with transfers of bitcoin out of the Trust to pay the Sponsor Fee and to reimburse the Sponsor in bitcoin for
payment of reimbursable extraordinary expenses paid by the Sponsor. Cold storage is a safeguarding method by which the private
key(s) corresponding to bitcoin is (are) generated and stored in an offline manner. Private keys are generated in offline computers
or devices that are not connected to the internet so that they are more resistant to being hacked. By contrast, in hot storage,
the private keys are held online, where they are more accessible, leading to more efficient transfers, though they are potentially
more vulnerable to being hacked or stolen.

If a Liquidity Provider Agreement, the Custody Agreement,
the Additional Bitcoin Custody Agreement, an Authorized Participant Agreement or Clearing Agreement is terminated or a Liquidity
Provider, an Authorized Participant, the Bitcoin Custodian or the Additional Bitcoin Custodian fails to participate in the creation
or redemption processes of the Trust or fails to provide services as required, the Sponsor may need to find and appoint a replacement
Liquidity Provider, Authorized Participant, Bitcoin Custodian or Additional Bitcoin Custodian quickly, which could pose a challenge
to the Trust’s ability to create and redeem Shares or the safekeeping of the Trust’s bitcoins, and the Trust’s
ability to continue to operate may be adversely affected.

The Trust is dependent on the Bitcoin Custodian to
operate, pursuant to the Custody Agreement and the Clearing Agreement. The Bitcoin Custodian performs essential functions in terms
of safekeeping the Trust’s bitcoin and, via the Clearing Services, facilitates the transfer of bitcoin