Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 45

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 45
---
 including the Bitcoin Blockchain, resulting in the operation of
    multiple separate networks.

    ●
    In August 2017, the Bitcoin network underwent a hard fork that resulted
    in the creation of a new digital asset network called Bitcoin Cash. This hard fork was contentious, and as a result some users
    of the Bitcoin Cash network may harbor ill will toward the Bitcoin network. These users may attempt to negatively impact the
    use or adoption of the Bitcoin network, as could constituencies adversely impacted by any contentious hard forks that take
    place in the future.

24

    ●
    Also in August 2017, the Bitcoin network was upgraded with a technical
    feature known as “Segregated Witness” with the promise of increasing the number of transactions per second that
    can be handled on-chain and enabling so-called second layer solutions, such as the Lightning Network or payment channels,
    that have the potential to increase transaction throughput by processing certain transactions outside the main Bitcoin Blockchain,
    but which may fail to achieve the expected benefits or widespread adoption or lead to new or unanticipated problems, leading
    to a decline in public support for, and the price of, bitcoin.

    ●
    As of the date of this Report, the largest 100 bitcoin wallets held
    a substantial amount of the outstanding supply of bitcoin and it is possible that some of these wallets are controlled by
    the same person or entity. Moreover, it is possible that other persons or entities control multiple wallets that collectively
    hold a significant number of bitcoin, even if each wallet individually only holds a small amount. As a result of this concentration
    of ownership, large sales by such holders could have an adverse effect on the market price of bitcoin.

    ●
    Governance of the Bitcoin network is by voluntary consensus and open
    competition. As a result, there may be a lack of consensus or clarity on the governance of the Bitcoin network, which may
    stymie the Bitcoin network’s utility and ability to grow and face challenges. In particular, it may be difficult to
    find solutions or martial sufficient effort to overcome any future problems on the Bitcoin network, especially long-term problems.

    ●
    Over the past decade, bitcoin mining operations have evolved from
    individual users mining with computer processors, graphics processing units and first-generation application specific integrated
    circuit (“ASIC”) machines to “professionalized” mining operations using proprietary hardware or sophisticated
    machines. If the profit margins of bitcoin mining operations are