Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 50

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 50
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 bitcoin to 21 million. Although many
observers believe this is unlikely at present, there is no guarantee that the current 21 million supply cap for outstanding bitcoin,
which is estimated to be reached by approximately the year 2140, will not be changed. If a hard fork changing the 21 million supply
cap is widely adopted, the limit on the supply of bitcoin could be lifted, which could have an adverse impact on the value of
bitcoin and the value of the Shares.

The Bitcoin Blockchain could be vulnerable
to a “51% attack,” which could adversely affect an investment in the Trust or the ability of the Trust to operate.

If the majority of the processing power
dedicated to mining on the Bitcoin network is controlled by a bad actor (often referred to as a “51% attack”), it
may be able to alter the Bitcoin Blockchain on which the Bitcoin network and bitcoin transactions rely. This could occur if the
bad actor were to construct fraudulent blocks or prevent certain transactions from completing in a timely manner, or at all. It
could be possible for the malicious actor to control, exclude or modify the ordering of transactions. Further, a bad actor could
“double-spend” its own bitcoin (i.e., spend the same bitcoin in more than one transaction) and prevent the confirmation
of other users’ transactions, while continuing to mine new bitcoin and confirm its own blocks, for so long as it maintained
control. If the bitcoin community did not reject the fraudulent blocks as malicious or to the extent that such bad actor did not
yield its control of processing power, reversing any changes made to the Bitcoin Blockchain may be impossible. Further, a malicious
actor or botnet could create a flood of transactions in order to slow down the Bitcoin network.

For example, in August 2020, the Ethereum
Classic Network was the target of two double-spend attacks by an unknown actor or actors that gained more than 50% of the processing
power of the Ethereum Classic network. The attacks resulted in reorganizations of the Ethereum Classic blockchain that allowed
the attacker or attackers to reverse previously recorded transactions in excess of $5.0 million and $1.0 million. Any similar
attacks on the Bitcoin network could negatively impact the value of bitcoin and the value of the Shares.

In addition, in May 2019, the Bitcoin Cash
network experienced a 51% attack when two large mining pools reversed a series of transactions in order to stop an unknown miner
from taking advantage of a flaw in