Company: HZEN
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0001193125-25-297573
Chunk: 72

Company: Grayscale Horizen Trust (ZEN)
Filing Date: 2025-11-25
Form: 10-K
Item: Item 7
Chunk 72
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 of September 30,

     2025

     2024

     2023

     Number of Shares authorized
      
     Unlimited

     Unlimited

     Unlimited

     Number of Shares outstanding

     11,425,100

     6,838,000

     6,838,000

     Number of Shares freely tradable(1)

     8,224,933

     3,469,864

     3,278,635

     Number of beneficial holders owning at least 100 Shares(2)

     26

     16

     22

     Number of holders of record(2)

     26

     16

     22

(1)Includes the total number of Shares that are not restricted securities as such term is defined under Rule 144.

(2)Includes Cede & Co. as nominee for DTC for the Shares traded on OTCQX, but not its direct participants. Therefore, this number does not include the individual holders who have bought/sold Shares on OTCQX or transferred their eligible Shares to their brokerage accounts. 

Critical Accounting Policies and Estimates 

Investment Transactions and Revenue Recognition 

The Trust considers investment transactions to be the receipt of ZEN for Share creations and the delivery of ZEN for Share redemptions or for payment of expenses in ZEN. At this time, the Trust is not accepting redemption requests from shareholders. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in ZEN. 

Principal Market and Fair Value Determination 

To determine which market is the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s net asset value in accordance with U.S. GAAP (“Principal Market NAV”), the Trust follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820-10, Fair Value Measurement, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for ZEN in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that ZEN is sold in its principal