Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 188

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1
Chunk 188
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 other critical components for mining equipment may be subject to price fluctuations or shortages.
For example, the ASIC chip is the key component of a mining machine as it determines the efficiency of the device. The production
of ASIC chips typically requires highly sophisticated silicon wafers, which currently only a small number of fabrication facilities,
or wafer foundries, in the world are capable of producing. There have been previous microchip shortages which led to price fluctuations
and disruption in the supply of key bitcoin mining hardware components. ASIC chips have recently been subject to supply and demand
fluctuations, significant price increases and shortages. Shortages of ASIC chips could create problems in the supply chain for
bitcoin mining equipment, negatively affecting the Bitcoin network by making it more difficult for transactions to be confirmed
or increasing transaction costs, or even affecting network security, which again could cause the value of bitcoin and the Shares
to decline.

Due to the unregulated nature and lack of transparency surrounding
the operations of bitcoin trading platforms, which may be subject to regulation in a relevant jurisdiction, but may not be complying,
they may experience fraud, manipulation, security failures or operational problems, which may adversely affect the value of bitcoin
and, consequently, the value of the Shares.

Digital asset trading platforms are relatively new and, in some cases,
unregulated. Many operate outside the United States. Furthermore, while many prominent digital asset trading platforms provide
the public with significant information regarding their ownership structure, management teams, corporate practices and regulatory
compliance, many digital asset trading platforms do not provide this information. Digital asset trading platforms may not be subject
to, or may not comply with, regulation in a similar manner as other regulated trading platforms, such as national securities exchanges
or designated contract markets. As a result, the marketplace may lose confidence in digital asset trading platforms, including
prominent trading platforms that handle a significant volume of bitcoin trading.

Many digital asset trading platforms are unlicensed, may be unregulated,
may be subject to regulation in a relevant jurisdiction, but may or may not be in compliance therewith, may operate without extensive
supervision by governmental authorities, and do not provide the public with significant information regarding their ownership structure,
management team, corporate practices, cybersecurity, and regulatory compliance. In particular, those located outside the United
States may be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions, and
may take the position that they are not subject to laws and regulations that would apply to a national securities exchange or designated
contract