Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 515

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 7A
Chunk 515
---
 

    Net change in unrealized appreciation on investment in bitcoin 
     —  
     384,606,755 

    Net realized gain on investment in bitcoin 
     —  
     34,425,264 

    Ending balance as of December 31, 2024 
     13,716.83  
    $1,280,450,332 

The Trust did not hold any bitcoin as of December 31, 2023.

D. Bitcoin

Bitcoin transactions are accounted for on trade date. Realized
gains and losses on the sale of bitcoin are determined based on the average cost method. Under ASC Topic 946, the average cost
method is an accepted method to determine realized gains and losses on the sale of bitcoin. Proceeds received by the Trust from
the issuance of baskets consist of bitcoin. Deposits of bitcoin are held by Gemini Trust Company, LLC (the “Bitcoin Custodian”)
and are also held at Coinbase Custody Trust Company, LLC (the “Additional Bitcoin Custodian”, and collectively the
“Bitcoin Custodians”), on behalf of the Trust until (i) delivered out in connection with redemptions of baskets or
cash or (ii) sold by the Sponsor, which may be facilitated by the Bitcoin Custodians, to pay fees due to the Sponsor and Trust
expenses and liabilities not assumed by the Sponsor.

E. Calculation of Net Asset Value

The Trust’s net asset value (“NAV”) is calculated
based on the Trust’s net asset holdings as reconciled to the Bitcoin Custodians’ accounts on a market approach, determined
on a daily basis in accordance with the MarketVectorTM Bitcoin Benchmark Rate price at 4:00 pm EST. The Trust’s
NAV per Share is calculated by taking the current market value of its total assets, subtracting any liabilities, and then dividing
that total by the total number of outstanding Shares. The Trust Agreement gives the Sponsor the exclusive authority to determine
the Trust’s NAV and the Trust’s NAV per Share, which it has delegated to the Administrator.

F-9

VANECK BITCOIN ETF

Notes to the Financial Statements (continued)

December 31, 2024

F. Federal Income Taxes

The Trust is treated as a grantor trust for federal income tax
purposes and, therefore, no provision for federal income taxes is required. Any interest, expenses, gains and losses are passed
through to the holders of Shares of the Trust