Company: GBTC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029408
Chunk: 142

Company: Grayscale Bitcoin Trust ETF
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 142
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 Trust’s determination of its principal market. 

The cost basis of Bitcoin received in connection with a creation order is recorded by the Trust at the fair value of Bitcoin at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.

Investment Company Considerations 

The Trust is an investment company for U.S. GAAP purposes and follows accounting and reporting guidance in accordance with the FASB ASC Topic 946, Financial Services—Investment Companies. The Trust uses fair value as its method of accounting for Bitcoin in accordance with its classification as an investment company for accounting purposes. The Trust is not a registered investment company under the Investment Company Act. U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and these differences could be material.

Review of Financial Results 

Financial Highlights for the Years ended December 31, 2024, 2023 and 2022 

(All amounts in the following table and the subsequent paragraphs, except Share, per Share, Bitcoin and price of Bitcoin amounts, are in thousands) 

    For the Years Ended December 31,

    2024

    2023

    2022

    Net realized and unrealized gain (loss) on investment in Bitcoin(1)
     
    $
    16,381,013

    $
    16,246,768

    $
    (18,751,107
    )

    Net increase (decrease) in net assets resulting from operations
     
    $
    16,090,537

    $
    15,886,207

    $
    (19,111,790
    )

    Net assets(2)
     
    $
    19,182,244

    $
    26,350,470

    $
    10,464,263

(1)Includes the impact of the Initial Distribution of 26,935.83753443 Bitcoin with a value of approximately $1,756.8 million to Grayscale Bitcoin Mini Trust ETF, completed on July 31, 2024, as discussed in Note 4 of the notes to the unaudited financial statements.

(2)Net assets in the above table and subsequent paragraphs are calculated in accordance with U.S. GAAP based on the Digital