Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 54

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 54
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 merchants or commercial
institutions, to switch from bitcoin to another digital asset or back to fiat currency as their preferred medium of exchange.
Decreased demand for bitcoin may adversely affect its price, which may adversely affect an investment in the Trust.

To the extent that any miners cease to
record transactions that do not include the payment of a transaction fee in mined blocks or do not record a transaction because
the transaction fee is too low, such transactions will not be recorded on the Bitcoin Blockchain until a block is mined by a miner
who does not require the payment of transaction fees or is willing to accept a lower fee. Also, some miners have financed the
acquisition of mining equipment or the development or construction of infrastructure to perform mining activities by borrowing.
If such miners experience financial difficulties and are unable to pay back their borrowings, their mining capacity could become
unavailable to the Bitcoin network, which could conceivably result in disruptions in recording transactions on the Bitcoin network.
Any widespread delays or disruptions in the recording of transactions could result in a loss of confidence in the Bitcoin network
and could prevent the Trustee from completing transactions associated with the day-to-day management of the Trust, including creations
and redemptions of the Shares in exchange for bitcoin with APs.

Ultimately, if the awards of new bitcoin
for solving blocks declines and transaction fees for recording transactions are not sufficiently high to exceed the costs of mining,
miners may operate at a loss or cease operations. If the award does not exceed the costs of mining in the long-term, miners may
have to cease operations entirely. If miners cease their operations, this could have a negative impact on the Bitcoin network
and could adversely affect the value of the bitcoin held by the Trust. If the awards for mining blocks or the transaction fees
for recording transactions on the Bitcoin network are not sufficiently high to

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incentivize miners, miners may cease expending
processing power to mine blocks and confirmations of transactions on the Bitcoin Blockchain could be slowed.

Miners could act in collusion to raise
transaction fees, which may adversely affect the usage of the Bitcoin network.

Bitcoin miners collect fees for each transaction
they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions to new blocks in the
blockchain. Miners are not forced to confirm any specific transaction, but they are economically incentivized to confirm valid
transactions as a means of collecting fees. To the extent that any miners cease to record transactions in solved blocks, such
transactions will