Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 226

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1A
Chunk 226
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functions. Declines in the condition of miners and other hardware will require bitcoin miners, over time, to repair or replace
those miners.

Additionally, as the technology evolves, miners may be required to acquire
newer models of mining hardware and machines to remain competitive in the market. Any upgrading process may require substantial
capital investment, and miners may face challenges in doing so on a timely and cost-effective basis. The business of bitcoin miners
will be subject to limitations inherent within the supply chain of their mining hardware equipment and components, including competitive,
governmental, and legal limitations, and other events. For example, many miners will significantly rely on foreign imports to obtain
mining hardware equipment and materials. Any global trade disruption, introductions of tariffs, trade barriers and bilateral trade
frictions, together with any potential downturns in the global economy resulting, could adversely affect the necessary supply chains
for mining hardware. Depending on the magnitude of such effects on the mining hardware supply chain, shipments of parts for mining
hardware, or new mining hardware and equipment, may be delayed.

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 changes of

15

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