# EDGAR Filing Document

**Accession Number:** 0002073548
**File Stem:** 0000950123-25-008505
**Filing Date:** 2025-8
**Character Count:** 1099409
**Document Hash:** a829015b706b59aa2522afc21b6365f9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950123-25-008505.hdr.sgml**: 20251113

**ACCESSION NUMBER**: 0000950123-25-008505

**CONFORMED SUBMISSION TYPE**: DRS/A

**PUBLIC DOCUMENT COUNT**: 6

**FILED AS OF DATE**: 20250818

**DATE AS OF CHANGE**: 20250815

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GSO Intermediate Holdings I Corp
- **CENTRAL INDEX KEY:** 0002073548
- **STANDARD INDUSTRIAL CLASSIFICATION:** [6221]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DRS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-08197
- **FILM NUMBER:** 251225792

**BUSINESS ADDRESS:**
- **STREET 1:** 290 HARBOR DRIVE
- **STREET 2:** 4TH FLOOR
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06902
- **BUSINESS PHONE:** (212) 668-1427

**MAIL ADDRESS:**
- **STREET 1:** 290 HARBOR DRIVE
- **STREET 2:** 4TH FLOOR
- **CITY:** STAMFORD
- **STATE:** CT
- **ZIP:** 06902

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GSO Intermediate Holdings I Corp
- **DATE OF NAME CHANGE:** 20250617

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**As confidentially submitted to the Securities and Exchange Commission on August 15, 2025. This draft registration statement has not been filed publicly with the Securities and Exchange Commission and all information herein remains strictly confidential.**

**Registration No. 333-** 

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM S-1

REGISTRATION STATEMENT<br>UNDER<br>THE SECURITIES ACT OF 1933

**GSO Intermediate Holdings I Corporation**

(Exact Name of Registrant as Specified in Its Charter)

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| | | |
|:---|:---|:---|
| Delaware | 6221 | 39-2149041 |
| (State or Other Jurisdiction of<br>Incorporation or Organization) | (Primary Standard Industrial<br>Classification Code Number) | (I.R.S. Employer<br>Identification Number) |
|  | **290 Harbor Drive, 4th Floor<br>Stamford, Connecticut 06902<br>(212) 668-1427** |  |
| (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices) | (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices) | (Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices) |

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| |
|:---|
| **Peter Mintzberg<br>Chief Executive Officer<br> Grayscale Investments<br>290 Harbor Drive, 4th Floor<br>Stamford, Connecticut 06902<br>(212) 668-1427** |
| (Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service) |

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| | | |
|:---|:---|:---|
|  | ***Copies to:*** |  |
| **Joseph A. Hall<br>Daniel P. Gibbons**<br>**Davis Polk & Wardwell LLP<br>450 Lexington Avenue<br>New York, New York 10017<br>(212) 450-4000** | **Craig Salm**<br>**Chief Legal Officer**<br>**Grayscale Investments<br>290 Harbor Drive, 4th Floor<br>Stamford, Connecticut 06902<br>(212) 668-1427** | **Ryan J. Dzierniejko**<br>**Jeremy A. Winter**<br>**Skadden, Arps, Slate, Meagher & Flom LLP**<br>**One Manhattan West**<br>**New York, New York 10001**<br>**(212) 735-3000** |

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**Approximate date of commencement of proposed sale to the public**: As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐ __________

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐ __________

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐ __________

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | |
|:---|:---|
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Non-accelerated filer ☒ | Smaller reporting company ☐ |
|  | Emerging growth company ☒ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.**

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **SUBJECT TO COMPLETION, DATED , 2025** 

##  **<u>PRELIMINARY PROSPECTUS</u>** ![img52763228_0.jpg](img52763228_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares**

**Class A common stock<br>$ per share**

We are offering shares of our Class A common stock. This is our initial public offering and no public ‎market exists for our Class A common stock. We anticipate that the initial public offering price of our Class A common stock will be between $ and $ per share.

Upon completion of this offering, we will have two classes of common stock: Class A common stock and Class B common stock. The Class A common stock offered hereby will have one vote per share and economic rights and the Class B common stock will have votes per share but no economic rights. Upon completion of this offering, the Pre-IPO LLC Members (as defined herein), controlled by Digital Currency Group, Inc. ("DCG"), our controlling shareholder, will hold shares of Class B common stock that will entitle them to % of the combined voting power of our common stock (or % if the underwriters exercise their option to purchase additional shares of Class A common stock in full). As a result, DCG will be able to control any action requiring the general approval of our stockholders, including the election of our board of directors, the adoption of amendments to our certificate of incorporation and bylaws and the approval of any merger or sale of the Company or substantially all of our assets. As a result, we will be a "controlled company" within the meaning of the rules. See "Management—Controlled Company Exemption" and "Risk Factors—Risk Factors Related to Ownership of Our Class A Common Stock and This Offering—Following the completion of this offering, we will be a "controlled company" as defined under the corporate governance rules of the , and as a result, will qualify for exemptions from certain corporate governance requirements of the ."

We are a holding company, and immediately after the consummation of the IPO Reorganization (as defined herein) and this offering, our principal asset will be our ownership interests in Grayscale Operating, LLC. As the sole managing member of Grayscale Operating, LLC, we will operate and control all of the business and affairs of Grayscale Operating, LLC and, through Grayscale Operating, LLC and its subsidiaries, conduct our business. See "Organizational Structure."

We will use all of the net proceeds we receive from this offering to purchase membership interests of Grayscale Operating, LLC, which we refer to as "LLC Units," from the Pre-IPO LLC Members, at a price for each LLC Unit equal to the initial public offering price of our Class A common stock after underwriting discounts and commissions. See "Use of Proceeds." Grayscale Operating, LLC will not receive any proceeds from the sale of LLC Units by the Pre-IPO LLC Members to us.

This offering is being conducted through what is commonly referred to as an "Up-C" structure.

We intend to apply to list our Class A common stock on the under the symbol " ."

**Investing in our Class A common stock involves risks. See "Risk Factors" beginning on page 26.**

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act and will therefore be subject to reduced reporting requirements. See "Prospectus Summary—Implications of Being an Emerging Growth Company."

**Neither the Securities and Exchange Commission (the "SEC") nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

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| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
| Public offering price | $— | $— |
| Underwriting discounts and commissions<sup>(1)</sup> | $— | $— |
| Proceeds to Grayscale before expenses | $— | $— |

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(1)We have agreed to reimburse the underwriters for certain Financial Industry Regulatory Authority-related expenses. See "Underwriters."

We have granted the underwriters the right to purchase up to an additional shares of our Class A common stock at the initial public offering price, less the underwriting discounts and commissions. The underwriters may exercise this option solely for the purpose of covering over-allotments, if any, made in connection with the offering of the shares of our Class A common stock offered by this prospectus.

The underwriters expect to deliver the shares to purchasers on or about , 2025.

**Morgan Stanley**

, 2025

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Table of contents** 

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| | |
|:---|:---|
|  | Page |
| [<u>Prospectus Summary</u>](#prospectus_summary) | 1 |
| [<u>Risk Factors</u>](#risk_factors) | 26 |
| [<u>Special Note Regarding Forward-Looking Statements</u>](#special_note_regarding_forward_looking) | 93 |
| [<u>Organizational Structure</u>](#organizational_structure) | 95 |
| [<u>Use of Proceeds</u>](#use_of_proceeds) | 100 |
| [<u>Dividend Policy</u>](#dividend_policy) | 101 |
| [<u>Capitalization</u>](#capitalization) | 102 |
| [<u>Unaudited Pro Forma Condensed Consolidated Financial Information</u>](#unaudited_financial_information) | 103 |
| [<u>Dilution</u>](#dilution) | 112 |
| [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | 114 |
| [<u>Business</u>](#business) | 133 |
| [<u>Management</u>](#management) | 161 |
| [<u>Executive and Director Compensation</u>](#executive_and_director_compensation) | 166 |
| [<u>Certain Relationships and Related Person Transactions</u>](#certain_relationships) | 174 |
| [<u>Principal Stockholders</u>](#principal_stockholders) | 180 |
| [<u>Description of Capital Stock</u>](#description_of_capital_stock) | 182 |
| [<u>Material U.S. Federal Tax Considerations for Non-U.S. Holders of Common Stock</u>](#material_us_federal_tax) | 188 |
| [<u>Shares Eligible for Future Sale</u>](#shares_eligible_for_future_sale) | 191 |
| [<u>Underwriters</u>](#underwriters) | 193 |
| [<u>Legal Matters</u>](#legal_matters) | 200 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Experts</u>](#experts) | 200 |
| [<u>Where You Can Find More Information</u>](#where_you_can_find_more_information) | 200 |
| [<u>Index to Consolidated Financial Statements</u>](#index) | F-1 |

---

We and the underwriters have not authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses we have prepared. We and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may provide you. We and the underwriters are offering to sell, and seeking offers to buy, shares of Class A common stock only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the shares of Class A common stock.

For investors outside the United States: we and the underwriters have done nothing that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside of the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating to, this offering of the shares of our Class A common stock and the distribution of this prospectus outside of the United States.

**Until , 2025, all dealers that buy, sell or trade our shares of Class A common stock, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **BASIS OF PRESENTATION** 
On January 1, 2025, we completed the Pre-IPO Reorganization described under "Organizational Structure—The Pre-IPO Reorganization," pursuant to which, among other things, Grayscale Investments, LLC merged with and into Grayscale Operating, LLC, with Grayscale Operating, LLC surviving the merger. The Pre-IPO Reorganization was treated as a reorganization of companies under common control and has been accounted for as a change in reporting entity between entities under common control, as each entity was controlled by DCG. Accordingly, Grayscale Operating, LLC's consolidated financial statements included in this prospectus as of and for the years ended December 31, 2024, and 2023 have been presented giving retroactive effect to the Pre-IPO Reorganization in accordance with Accounting Standards Codification ("ASC") 250-10-45-21.

GSO Intermediate Holdings I Corporation was formed as a Delaware corporation on May 2, 2025 and has not conducted any activities other than those incidental to its formation, the IPO Reorganization and the preparation of this prospectus and the registration statement of which this prospectus forms a part. In connection with this offering, we will complete the IPO Reorganization pursuant to which GSO Intermediate Holdings I Corporation will be renamed to and will become our holding company ("Grayscale Holdings"), and its principal asset will be its ownership interests in Grayscale Operating, LLC. See "Organizational Structure—The IPO Reorganization." Upon completion of the IPO Reorganization, Grayscale Operating, LLC will be the predecessor of Grayscale Holdings for financial reporting purposes.

In this prospectus, unless the context otherwise requires, "Grayscale," the "Company," "we," "us" and "our" refer (i) prior to the consummation of the Pre-IPO Reorganization described under "Organizational Structure—The Pre-IPO Reorganization," to Grayscale Investments, LLC and its subsidiaries (ii) after the Pre-IPO Reorganization and prior to the consummation of the IPO Reorganization described under "Organizational Structure—The IPO Reorganization," to Grayscale Operating, LLC and its subsidiaries and (iii) after the IPO Reorganization described under "Organizational Structure—The IPO Reorganization," to Grayscale Holdings, Grayscale Operating, LLC and their subsidiaries. Unless otherwise stated or the context otherwise requires, all information in this prospectus reflects the consummation of the IPO Reorganization.

# **MARKET AND INDUSTRY DATA** 
This prospectus includes industry and market data that we obtained from periodic industry publications, third-party studies and surveys, filings of public companies in our industry and internal company surveys. These sources include government and industry sources. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable. Although we believe the industry and market data to be reliable as of the date of this prospectus, this information could prove to be inaccurate. Industry and market data could be wrong because of the method by which sources obtained their data and because information cannot always be verified with complete certainty due to the limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. In addition, we do not know all of the assumptions regarding general economic conditions or growth that were used in preparing the forecasts from the sources relied upon or cited herein. Such data and assumptions, including those relating to a specified market's projected growth or future performance, are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors." These and other factors could cause future performance to differ materially from such data and estimates. See "Special Note Regarding Forward-Looking Statements."

# **TRADEMARKS AND TRADE NAMES** 
We own or have rights to trademarks, service marks and trade names that we use in connection with the operation of our business. Other trademarks, service marks and trade names appearing in this prospectus are the property of their respective owners. Solely for convenience, some of the trademarks, service marks and trade names referred to in this prospectus are listed without the® or™ symbols, but we will assert, to the fullest extent under applicable law, our rights to our trademarks, service marks and trade names.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **NON-GAAP FINANCIAL MEASURES** 
This prospectus contains non-GAAP financial measures, including Adjusted Operating Income, which are financial measures that are not calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for our definitions of these non-GAAP measures, information about how and why we use these non-GAAP measures and a reconciliation of each of these non-GAAP measures to its most directly comparable financial measure calculated in accordance with U.S. GAAP.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Prospectus Summary** 
*This summary highlights information contained elsewhere in this prospectus. This summary may not contain all of the information that you should consider before deciding to invest in our Class A common stock. You should read this entire prospectus carefully, including the "Risk Factors," "Special Note Regarding Forward-Looking Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" sections and the consolidated financial statements and the notes to those statements.*

## **Grayscale Overview** 
In the span of less than 20 years, digital assets have transitioned from a pseudonymous whitepaper describing a theoretical "peer-to-peer version of electronic cash" into a multi trillion-dollar asset class representing a secular shift in how we think about the transfer of information and value. Digital assets and their underlying blockchain technology are both disrupting and democratizing financial markets and accelerating the pace of financial inclusion. In a world of greater regulatory clarity and institutional adoption, we believe digital assets have reached escape velocity and are now moving towards overtaking existing financial markets.

Grayscale is the largest digital asset-focused investment platform in the world by AUM and offers the broadest selection of digital asset investment products in the U.S. based on number of products. Our platform spans the full spectrum of institutional-grade solutions—from single-asset trusts to diversified and thematic strategies—with a goal of providing every investor with access to the hyper-expanding digital asset universe. Because we generate substantially all of our fee-earning revenue from the value of the digital assets in our investment products, we believe we are the ideal investment proxy for this asset class.

Founded in 2013, Grayscale was among the first to innovate on easy and trusted ways for individuals and institutions to participate in this secular shift. We began by creating regulated and secure investment vehicles to simplify the ownership of digital assets. Over time, our mission evolved: beyond access, we sought to connect capital with the most promising opportunities to help unlock the transformative potential of blockchain technology.

We have been at the forefront of this digital revolution ever since, pioneering the infrastructure that has enabled investors to participate in what is now the fastest-growing asset class in the past decade as compared to other major asset classes, including U.S. equities, gold and U.S. corporate bonds. From the beginning, we knew that in order for digital assets to achieve their potential, investors would need trusted, regulated and accessible pathways to invest in digital assets. Grayscale set out to bridge that gap. Our journey began with the launch of the world's first Bitcoin investment vehicle—then known as the "Bitcoin Investment Trust" —introduced when Bitcoin was still considered a "controversial virtual currency" and had a market capitalization of approximately $1.5 billion; as of June 30, 2025, its market capitalization is over 1,000 times that at approximately $2.2 trillion. This groundbreaking product offered U.S. accredited investors a familiar investment vehicle to gain exposure to the first and largest digital asset protocol in existence and would ultimately go on to be the first publicly traded Bitcoin vehicle under the ticker GBTC, the first SEC reporting digital asset investment vehicle and among the first spot Bitcoin exchange-traded products.

That same spirit of innovation and leadership has continued to drive us ever since. As the digital asset ecosystem evolved, developers began to unlock new dimensions of utility beyond Bitcoin's original design—paving the way for more advanced use cases. The next major breakthrough came with the creation of Ethereum, which introduced smart contracts and enabled programmable, decentralized applications across a wide range of sectors. Building on the tremendous success of the Bitcoin Investment Trust, we launched the first publicly traded Ethereum investment trust, once again setting a new industry standard. After Ethereum, innovative next generation digital asset protocols have continued to develop and optimize for different use cases. In 2024, Grayscale continued its leadership of firsts by filing for the first multi-digital asset exchange-traded product holding assets beyond Bitcoin and Ethereum.

What began with Bitcoin and Ethereum has spurred the development of an entire universe of digital assets and a global technological movement—extending far beyond financial services into industries as diverse as identity systems, digital artwork, file storage, web hosting, gaming and artificial intelligence. Blockchain technology is now transforming the traditional financial world with the tokenization of real-world assets, such as stocks, bonds, real estate and commodities, while stablecoins have become one of its most prominent use cases to date. Alongside this growth, we developed Grayscale Crypto Sectorsˢᵐ, a standardized framework for categorizing the asset class that

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

enables investors to better understand the evolving landscape and allows us to analyze and systematically develop investment opportunities as the asset class evolves. We believe digital assets have the potential to reach nearly every facet of the economy and Grayscale is equipped to offer solutions for our stakeholders to capitalize on their growth at key steps along the way.

As a first-mover, we have become deeply embedded within the digital asset ecosystem and, through our platform, we work directly with protocol teams to source and structure investment products around what we believe are the most promising emerging protocols.

As digital assets reshape the future of finance, Grayscale is not just participating in the evolution—we are helping invent it as we build the platform that we believe will continue to define the category in the years ahead. Just as Vanguard Group drove innovation in investment management with their first mutual fund in 1976, PIMCO drove innovation in investment management with their first bond fund in 1987, KKR transformed private equity with their leveraged buy-out vehicles in the 1980s and Blackrock dominated the most recent investment management innovation cycle with their exchange-traded funds ("ETFs") in the 1990s to present day, Grayscale is pioneering this next-generation asset class.

For the year ended December 31, 2024, we generated $506 million in revenue and $365 million in operating income, representing an operating income margin of 72%. For the six months ended June 30, 2025, we generated $199 million in revenue and $122 million in operating income, representing an operating income margin of 61%. As of June 30, 2025, we manage $30.5 billion in AUM from which we earn management and advisory fees. We have a robust financial profile, and we expect to continue to grow our business over time by attracting more investors to our platform through our diversified portfolio of digital asset-focused investment solutions.

As we enter our next phase of growth, in 2025 we anticipate implementing a comprehensive digital asset treasury strategy to amplify and accelerate our positioning as the ideal investment proxy for the digital asset class. We expect to intentionally build a diversified pool of digital asset exposures on our balance sheet, beginning with Bitcoin, Ethereum, XRP and Solana, to establish a strategic treasury reserve that we believe would not only strengthen our financial position over the long term but also extend digital asset exposure to our investors in a more direct and aligned way. We believe this initiative is a natural extension of our core business and enhances our inherent leverage to the digital asset ecosystem.

## **Market Opportunity** 
***Massively Expanding Market***

Grayscale is capitalizing on a massively expanding market opportunity, addressing digital assets, the fastest-growing asset class in the past decade as compared to other major asset classes, including U.S. equities, gold and U.S. corporate bonds. Looking at Bitcoin as a proxy for digital assets, from June 30, 2015 to June 30, 2025, Bitcoin price increased 41,424% per CoinGecko. Comparatively over the same time period, the S&P 500 (per S&P Capital IQ), gold (per S&P Capital IQ), U.S. bonds (as measured by the Bloomberg U.S. Aggregate Total Return Value Unhedged USD Index) and U.S. treasuries (as measured by the BlackRock U.S. iShares Treasury Bond ETF) increased 201%, 186%, 19% and 12%, respectively.

As a result of this massive growth, we estimate our total addressable market capitalization is approximately $3.4 trillion as of June 30, 2025. We calculate this figure using the market capitalization of Bitcoin, Ethereum, and all other digital assets tracked by CoinGecko as of June 30, 2025, representing $2.2 trillion, $302 billion, and $973 billion, respectively. Our serviceable addressable market reflects the total amount of capital invested in digital assets through investment vehicles of the same type we offer such as exchange-traded products ("ETPs"), private funds or trusts, publicly-quoted private funds or trusts, and actively-managed strategies. We estimate this serviceable market opportunity is approximately $358.0 billion today.

Looking forward, we believe there is potential for our addressable market opportunity to grow further. For example, prominent figures have implied that the digital asset market could grow to approximately $14 trillion, based

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

on comments from Larry Fink indicating the potential for Bitcoin's price to reach $700,000, and up to approximately $441 trillion by 2046, based on comments from Michael Saylor.

***Increasing Portfolio Allocations***

We continue to see investors indicate a growing interest in increasing their exposure to the digital asset ecosystem. In an independent survey conducted by EY, 83% of institutional investors expect to increase their digital asset allocations in 2025, with 59% expecting to allocate more than 5% of their portfolio to digital assets. We are also seeing this shift in investor preference towards digital assets across wealth management channels. According to a survey of financial advisors conducted by the Digital Assets Council of Financial Professionals between October and December 2024, the proportion of financial advisors recommending allocations toward digital assets for all clients has more than doubled relative to the start of the year, from 8% in the first quarter of 2024 to 20% in the fourth quarter of 2024. In addition, 65% of financial advisors have recommended digital asset allocations to at least 10% of their clients, and more than a third of financial advisors recommend digital asset allocations to at least half of their clients – indicating significant interest in the asset class and further opportunity for investor exposure to the asset class to increase over time.

***Continuing Adoption***

In addition to changing investor preferences, we also expect greater adoption of digital assets to materially contribute to the growth in our market. According to an analysis conducted by BlackRock in January 2025, the adoption of digital assets has outpaced the adoption of mobile phones and the internet historically, with digital assets reaching 300 million users in 12 years, while the internet and mobile phones reached 300 million users in 15 years and 21 years, respectively. Across digital assets, we see that adoption has been highly correlated with market size. Considering Bitcoin as a proxy for the broader asset class, we have observed that historically as Bitcoin adoption has increased, the price of Bitcoin has increased – demonstrating a significant opportunity ahead for this asset class as adoption continues to grow.

***Unlocking Digital Asset Features***

Digital assets have unique features. We believe one of the most prominent examples is staking, an activity with no direct parallel in traditional asset classes. By participating in staking, holders of certain digital assets help secure blockchain networks like Ethereum, and in return, earn protocol-level rewards for doing so. This mechanism not only enhances network integrity but also enables value creation directly from asset ownership. As of June 30, 2025, we manage one of the largest Ethereum ETP franchises globally, with approximately $4.2 billion in assets under management. While we currently cannot stake such assets, based on the average annualized staking reward rate of approximately 3% on the Ethereum protocol, we believe this position gives us the potential to generate tens of millions of dollars in additional value annually. We are advocating for regulatory approval to enable staking in our Ethereum, Solana and other stakeable investment vehicles to unlock this potentially significant value creation.

## **Industry Background** 
The digital asset industry has evolved significantly in recent years as the regulatory environment and market infrastructure underpinning the industry have continued to develop and improve, and digital asset adoption has soared. We expect capital inflows across digital asset investment products to accelerate, supported by constructive regulatory tailwinds and growing institutional demand for the asset class.

***Grayscale's Landmark Victory – A Catalyst for Institutional Adoption***

One of the most significant catalysts to institutional adoption was the approval of Bitcoin and Ethereum-based ETPs in the United States, in which Grayscale played a critical role. In 2023, Grayscale secured a landmark victory in

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

a U.S. Court of Appeals decision ruling in our favor as we sought to convert our Bitcoin trust into a spot Bitcoin ETP. This was a watershed moment in the industry and eventually led to the approval of the first spot Bitcoin ETPs.

The approval of spot Bitcoin ETPs opened avenues for institutional investors to gain exposure to digital assets through regulated, traditional investment vehicles, thereby reinforcing Grayscale's mission of bridging the gap between traditional finance and digital asset innovation.

***Pro-Digital Asset Regulatory Tailwinds*** 

Following the successful launches of Bitcoin and Ethereum ETPs, the U.S. now finds itself in the most pro-digital asset innovation administration to date. The current administration has demonstrated a proactive approach to integrating digital assets into the financial system, marking a departure from previous regulatory postures. Recent key developments fostering digital asset innovation have spanned all levels of government, including executive action (such as Executive Order 14178, establishing the Presidential Working Group on Digital Asset Markets with a mandate to develop a federal regulatory framework for digital assets, and the Working Group's July 2025 report); regulatory and judicial posture (such as the SEC's formation of a dedicated Crypto Task Force, announcement of "Project Crypto," and decision to drop or pause over a dozen high-profile lawsuits and/or investigations against leading digital asset market participants and protocol development teams year-to-date); as well as legislative policy (such as the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS, Act and the U.S. House passage of the Digital Asset Market Clarity, or CLARITY, Act).

***Institutional Adoption and Asset Class Legitimization***

The confluence of executive action, judicial decisions and legislative reforms has dramatically reshaped the digital asset landscape, creating a clear regulatory roadmap and unlocking institutional interest. We have witnessed a dramatic shift in the perception and role of digital assets in global capital markets. Institutional investors—including asset managers, corporations, pensions, endowments and sovereign wealth funds—have moved beyond exploratory allocations and are now integrating digital assets into core investment strategies.

This transformation is particularly significant in light of the historic reluctance by legacy investment platforms to engage with digital assets. These platforms were not structurally or technologically equipped to navigate blockchain infrastructure, assess token-based investment vehicles, or provide compliant trading solutions tailored to digital assets. However today, continued institutional adoption, increasing regulatory clarity and advancements in the underlying technology have transformed digital assets into a core strategic allocation for a growing share of institutional portfolios.

We believe the growing demand for digital asset exposure—driven by macroeconomic diversification, generational wealth transition, and regulatory normalization—will continue to accelerate. Looking ahead, we believe platforms like Grayscale with the right combination of technical fluency, regulatory compliance, and fiduciary discipline are uniquely positioned to capitalize on the next wave of capital inflows.

## **What Sets Us Apart** 
We are a pioneer and believe that we are the ideal investment proxy for this asset class.

***Grayscale versus Digital Assets***

We believe $1 invested in Grayscale has the potential to outperform $1 invested in digital assets. We believe what drives this value proposition for investors is the inherent operating leverage underlying our platform, which has

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the potential to deliver superior returns relative to holding digital assets directly when digital asset prices appreciate, while maintaining a degree of cost control and downside protection should digital asset prices depreciate.

Additionally, compared to investing in digital assets directly, we believe Grayscale offers better accessibility and diversification due to the ability to gain exposure to the digital asset class through a single Grayscale ticker and a brokerage account.

***Grayscale versus Digital Asset Exposure via Public Markets*** 

Compared to the other options investors have for digital asset exposure via the public markets, including stablecoin issuers, miners, exchanges/brokerages and digital asset treasury companies, we believe Grayscale offers differentiated exposure given the diversification and capital efficiency to our business. Our platform delivers diversification across the full spectrum of the digital asset universe, including market-leading tokens such as Bitcoin and Ethereum, as well as next-generation tokens which have rapidly scaled with a diverse variety of use cases. We also operate a platform that is highly capital-efficient, driven by our fee-based revenue model on assets under management—which has not required outside capital to scale—and our historically best-in-class margins relative to legacy investment platforms, driven by our ability to control our expense base which is majority fixed in nature.

Compared to digital asset exposure via public market options, we believe Grayscale offers (1) better diversification than stablecoin issuers due to our comprehensive coverage of the digital asset universe rather than exposure to one sector, (2) better capital efficiency than miners due to their higher operating expenses, (3) better economics than digital exchanges and brokerages due to our revenues being derived from more stable management fees, and (4) better return on equity than treasury companies due to our profitable and capital-light operating business model that can, but does not need to, issue dilutive equity or debt.

As a business overall, we are differentiated by our digital asset investment platform, our trusted brand, our market-leading position, our proven management team, our institutional-grade infrastructure, our distribution platform and our regulatory leadership and industry advocacy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Digital Asset Investment Platform*: We have over a decade of experience building a platform curated specifically for the rapidly evolving digital asset class. As the largest digital asset-focused investment platforms in the world that is deeply embedded in the space, we have developed close relationships across the ecosystem, including with early-stage builders of protocols and tokens, enabling differentiated access to what we believe are the most promising digital asset investment opportunities. Following the selection of high-conviction assets, we explore strategic avenues to engage with projects to unlock access and create meaningful exposure for investors. We continue to invest in and expand this platform through to enhance our product offering and extend our market leadership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Trusted Brand*: We are the premier brand in the digital asset ecosystem, with leading mindshare versus other digital asset-focused investment platforms. According to market research consultancy Whitman Insight Strategies, Grayscale's brand awareness is approximately 2x greater than other digital asset-focused investment platforms 21Shares, Bitwise and CoinShares (based on a brand health survey commissioned by Grayscale, sampling 1,200 investors in the United States in December 2024). As the digital asset market has evolved, Grayscale has helped define it, becoming a trusted, educational thought leader and partner for financial professionals as they navigate and deploy capital into the asset class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Market-Leading Position*: The strength of our brand and our position as a trusted advisor to capital allocators has resulted in clear market leadership for Grayscale. Today, we have the #1 Bitcoin investment platform in the world by revenue as compared to other sponsors of spot Bitcoin ETPs; the #1 Ethereum investment platform in the world by revenue as compared to other sponsors of spot Ethereum ETPs; and the #1 Alternative Token investment platform in the world by revenue as compared to other sponsors of private funds investing in spot digital assets, where Alternative Tokens represents the over 38 other tokens our platform provides exposure to outside of Bitcoin and Ethereum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Proven Management Team*: Our team is a rare combination of decades of traditional finance work experience and digital asset leadership. Our team brings an institutional mindset to the evolving digital

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asset industry. In many cases, we have even helped define how digital asset products can operate within established regulatory frameworks, for instance, by bringing the first SEC reporting digital asset funds to market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Institutional-Grade Infrastructure*: We have invested heavily in developing a comprehensive compliance infrastructure purpose-built for digital assets. Our products are backed by institutional-grade partners, including custodians and auditors. Global investors, advisors and allocators look to Grayscale for secure and compliant exposure to the digital asset universe. Our internal controls, service provider ecosystem, and risk management protocols are designed to adhere to applicable federal securities laws, tax regulations, anti-money laundering ("AML") and know-your-customer ("KYC") requirements, and custodial standards. We believe our regulatory track record and reputation for responsible product design provide meaningful competitive differentiation, particularly as investors demand greater assurance, trust, and governance around digital asset exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Client Engagement Platform*: With our team of digital asset experts, we are dedicated to deepening the world's understanding of the expanding digital asset landscape. We publish institutional-grade research on the digital asset landscape, combining deep fundamental diligence with real-time market intelligence to deliver insight that is trusted by a wide range of investors and capital allocators. Additionally, through our series of hosted *Crypto Connect* events in key wealth centers across the United States, we bring together our client engagement and research teams, as well as a network of industry leaders, regulatory experts and executives to educate hundreds of professional buyers, advisors, platforms and capital allocators representing trillions of dollars in wealth. In 2024, we published 37 research reports and hosted numerous events bringing together hundreds of finance professionals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Regulatory Leadership and Industry Advocacy*: We believe that strong regulatory engagement is essential to the long-term development and growth of digital assets. Grayscale maintains close and proactive relationships with U.S. regulators, and we have demonstrated a willingness to advocate for industry advancement within a compliant framework, most notably through our successful efforts to uplist Grayscale Bitcoin Trust as one of the first spot Bitcoin ETPs. This marked a critical milestone for industry legitimacy and investor access. More recently, we are advocating for regulatory approval to enable staking in certain of our investment vehicles, which would unlock significant amounts of value as one of the largest holders of stakeable assets through our Ethereum ETP franchise. Our reputation as a responsible, constructive industry participant is an increasingly important differentiator as regulators define the future of the digital asset market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Digital Asset Treasury Strategy*: Our treasury strategy draws on our deep domain expertise as the largest digital asset investment platform. We believe in the long term there will be three kinds of winning digital asset treasury strategies: those with scale, those with diversification or those with core business models that are inherently connected to digital assets. We believe Grayscale checks all three of these boxes, which solidifies our potential to be a winner in the digital asset treasury category. Additionally, given our highly profitable business and ability to organically grow our treasury strategy through management fees, we are positioned to further grow our strategy with a broad spectrum of equity and debt-like structured products as aggressively or conservatively as we desire.

## **Digital Asset Investment Platform** 
We are the largest digital asset-focused investment platform in the world as measured by AUM with approximately $30.5 billion under management. We offer the broadest selection of digital asset investment products in the U.S., based on number of products, with more than 30 products covering over 40 tokens as of June 30, 2025, whereas the closest competitor offers less than half the number of digital asset investment products compared to Grayscale as of June 30, 2025. We consider digital asset-focused investment platforms to be investment platforms that have provided services related to digital assets since their inception and currently primarily generate revenue from such digital asset-related services.

Our investment platform provides a robust and compelling suite of investment solutions across a range of liquidity profiles, designed to bridge investor access to digital assets through traditional investment vehicles, removing the storage, reporting and other logistical challenges associated with holding digital assets directly. In addition, our

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products enable investors to use tax-advantaged accounts such as individual retirement accounts and 401(k) retirement plans. We continue to invest in and expand this platform to further enhance our product offerings and extend our market leadership.

We are a trailblazer in developing innovative solutions that bridge our clients to digital asset innovation. Throughout our history, we have pioneered a comprehensive suite of investment solutions spanning single asset, diversified and thematic strategies across the complete liquidity spectrum. Our investment solutions platform consists of ETPs, ETFs and Private Funds across both active and passive strategies.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Solution** | &nbsp;&nbsp;**Overview** | &nbsp;&nbsp;**Product List (as of June 30, 2025)** |
| &nbsp;&nbsp;**ETPs and ETFs**<br>**$28.9Bn** | &nbsp;&nbsp;Efficient, liquid offerings providing investors with strategically designed thematic exposure to digital assets, digital asset ETPs and equities in a familiar vehicle | &nbsp;&nbsp;**<u>Passive:</u>**<br>***ETPs***<br>•Bitcoin Trust ETF (Ticker: GBTC)<br>•Bitcoin Mini Trust ETF (Ticker: BTC)<br>•Ethereum Trust ETF (Ticker: ETHE)<br>•Ethereum Mini Trust ETF (Ticker: ETH)<br>***ETFs***<br>•Bitcoin Miners ETF (Ticker: MNRS)<br>•Bitcoin Adopters ETF (Ticker: BCOR)<br>**<u>Active:</u>**<br>***ETFs***<br>•Bitcoin Covered Call ETF (Ticker: BTCC)<br>•Bitcoin Premium Income ETF (Ticker: BPI) |
| &nbsp;&nbsp;**Private Funds**<br> **$1.6Bn** | &nbsp;&nbsp;Private placement offerings to accredited investors. Private placement investors can gain liquidity by selling shares that have been approved for public trading on the OTC Markets Group | &nbsp;&nbsp;**<u>Passive:</u>**<br>***Private Placements***<br>•AAVE Trust<br>•Avalanche Trust<br>•Bittensor Trust<br>•Decentralized AI Fund<br>•DeepBook Trust<br>•Dogecoin Trust <br>•Lido DAO Trust<br>•MakerDAO Trust<br>•NEAR Trust<br>•Optimism Trust <br>•Pyth Trust<br>•Smart Contract Fund<br>•Space and Time Trust<br>•Stacks Trust <br>•Sui Trust<br>•Walrus Trust<br>•XRP Trust<br>***Publicly Traded on the OTC Markets Group***<br>•Basic Attention Token Trust (Ticker: GBAT)<br>•Bitcoin Cash Trust (Ticker: BCHG)<br>•Chainlink Trust (Ticker: GLNK)<br>•Decentraland Trust (Ticker: MANA)<br>•Decentralized Finance (DeFi) Fund (Ticker: DEFG)<br>•Digital Large Cap Fund (Ticker: GDLC) |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Solution** | &nbsp;&nbsp;**Overview** | &nbsp;&nbsp;**Product List (as of June 30, 2025)** |
|  |  | &nbsp;&nbsp;•Ethereum Classic Trust (Ticker: ETCG)<br>•Filecoin Trust (Ticker: FILG)<br>•Horizen Trust (Ticker: HZEN)<br>•Litecoin Trust (Ticker: LTCN)<br>•Livepeer Trust (Ticker: GLIV)<br>•Solana Trust (Ticker: GSOL)<br>•Stellar Lumens Trust (Ticker: GXLM)<br>•Zcash Trust (Ticker: ZCSH)<br>**<u>Active:</u>**<br>***Active Strategies***<br>•Dynamic Income Fund (GDIF) |

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***ETPs and ETFs***

Our ETPs and ETFs are efficient, liquid investment vehicles that provide retail and institutional investors with strategically designed thematic exposure to digital assets, digital asset ETPs and equities. We have laid the foundation for how trusted institutions engage with regulators to bring digital assets into the mainstream—building solutions that prioritize access, security and innovation. Following our landmark victory in a U.S. Court of Appeals ruling in our favor as we sought to convert our Bitcoin trust into a spot Bitcoin ETP, we paved the way for the digital asset ETP ecosystem in the U.S. In 2024, we were among the first to uplist our publicly traded Bitcoin investment fund, GBTC, and publicly traded Ethereum investment fund, ETHE, as ETPs.

As of June 30, 2025, we managed $28.9 billion in AUM in ETPs and ETFs across 6 passive products and 2 active products.

***Private Funds***

We are a pioneer in integrating digital assets into regulated investment frameworks and vehicles, enabling investor access to the fastest-growing asset class. Since launching our first private fund in September 2013—the Grayscale Bitcoin Trust—we have leveraged the private placement structure to deliver innovative, first-to-market investment offerings.

As of June 30, 2025, we managed $1.6 billion in AUM in Private Funds across 32 products spanning both passive and active strategies.

***Capital Solutions***

We marry capital with the most promising opportunities to help unlock the transformative potential of blockchain technology. We work directly with protocol teams to source and structure investment products around what we believe are the most promising emerging protocols. We are deeply embedded in the digital asset ecosystem, engaging directly with protocol teams and founders, digital asset foundations and developer communities. We provide differentiated early insights and access supported by institutional-grade research where we combine deep fundamental diligence with real-time market intelligence. We evaluate assets by identifying protocols aligned with key thematic tailwinds and by applying a disciplined, long-term investment lens.

Our systematic, dual-focused approach applies a digital asset-focused lens in conjunction with traditional investment analysis to evaluate projects and uncover what we believe are the highest value opportunities among over ten million tokens.

Following the selection of high-conviction assets, we explore strategic avenues to engage with projects to unlock access and create meaningful exposure for investors. We evaluate investment vehicle suitability to launch the product

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in an optimal structure to satisfy investor demand. Our digital asset selection and expertise enable us to create and deliver innovative, forward-looking investment opportunities.

***Digital Asset Selection Process***

Our digital asset selection process is research-driven and multi-faceted, designed to identify digital assets and strategies that offer compelling investment potential. Led by our Product and Research teams, our systematic, dual-focused approach leverages an institutional framework that draws upon our digital asset expertise and traditional finance principles to identify what we believe are best-in-class protocols around which we build products.

Our investment framework allows us to systematically evaluate a broad universe of digital asset protocols and to identify assets, strategies and vehicles that align with market demand and emerging structural trends. This approach emphasizes fundamental quality and positions us to maintain a leadership role in the digital asset industry.

As we identify digital assets for inclusion in our products, we consider where they fall within our Grayscale Crypto Sectorsˢᵐ, a standardized framework for categorizing digital assets that enables investors to better understand the evolving landscape and allows us to analyze and systematically develop investment opportunities as the asset class evolves. Crypto Sectors is a proprietary taxonomy of digital assets and a set of rigorous index tools developed in partnership with FTSE/Russell. In equity markets, investors typically organize listed assets according to the Global Industry Classification Standard ("GICS")—developed by MSCI and S&P Dow Jones Indices—and this taxonomy is the basis for many investible products. Like the GICS, Crypto Sectors provides a systematic and exhaustive classification system for investible assets. Crypto Sectors measures the universe of digital assets listed on centralized exchanges that meet minimum thresholds for market capitalization and liquidity. Each of these assets is then categorized into one of six distinct sectors and 24 subsectors. Grayscale applies this framework to evaluate each asset's performance and fundamentals against an appropriate peer group. By comparing blockchains and/or related applications to peers with similar business models, Grayscale can systematically identify potential investment opportunities.

***Product Development***

Our product development process is designed to progress from asset and strategy identification to investment vehicle formation, providing investors with investment solutions in familiar investment product formats across a range of liquidity alternatives. We identify and evaluate digital assets and strategies that have a compelling use case and the potential for asymmetric upside across a rapidly evolving and complex digital asset landscape.

This process is underpinned by our regulatory commitment. Our legal, compliance and operational specialists collaborate with our product and research team from the outset of the process, focusing on adherence with securities regulation, filing requirements and other regulatory obligations. We proactively engage with regulators to support filing and approval processes and enable more efficient new product development amid evolving regulatory frameworks.

We are a leader and innovator in originating and structuring institutional-grade digital asset products, working directly with protocol teams to design offerings that are scalable, aligned and bridge investors to digital asset innovation. We are committed to further expanding our product offerings in close collaboration with founders, protocol teams and core contributors—connecting these innovators to investors and enabling access to capital markets.

***Our Client Engagement Platform***

We aim to be the platform of choice for investors to navigate the evolving digital asset ecosystem. We have one of the largest teams of digital asset-specialized client engagement professionals and portfolio consultants, with deep expertise and knowledge of the digital asset industry and traditional finance. Unlike other investment platforms, for whom digital assets may be one of many asset classes they focus on selling to their clients, digital assets are our only focus. Our prolific engagement platform provides coast-to-coast U.S. coverage in key wealth centers and is further enhanced by our full suite of sales infrastructure technology and exclusive client insights and events, including our

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series of hosted *Crypto Connect* events that bring together hundreds of advisors representing trillions of dollars in wealth. In 2024, we published 37 research reports and hosted numerous events bringing together hundreds of finance professionals.

## **Digital Asset Treasury Strategy** 
In connection with our anticipated digital asset treasury strategy, we expect to intentionally build a diversified pool of digital asset exposures on our balance sheet, beginning with Bitcoin, Ethereum, XRP and Solana, to establish a strategic treasury reserve that we believe would not only strengthen our financial position over the long term but also extend digital asset exposure to our investors in a more direct and aligned way.

We believe this initiative is a natural extension of our core business and enhances our inherent leverage to the digital asset ecosystem. Grayscale has always been intrinsically linked to the performance of the asset class through our fee-based revenue model denominated in digital assets. Historically, we monetized these fees for cash on a programmatic basis. By instead retaining all or a portion of this flow of tokens on our balance sheet and allocating additional capital to accumulate more, we would deepen that connection in a manner that is synergistic with our business as an asset manager. Additionally, we intend to hold some of our digital asset exposure directly through our investment products, further aligning our interests with those of our investors.

Our treasury strategy draws on our deep domain expertise as the largest digital asset investment platform and will be structured around a basket of large-cap token exposures that mirror those offered through our investment products. We anticipate funding our initial treasury via a private raise, providing meaningful foundational capital and scale from inception. This initial cohort of digital asset exposures may be periodically rebalanced using our institutional-grade asset selection and investment processes to optimize value appreciation. Through this approach, we believe our balance sheet has the potential to become not just a financial resource, but a strategic instrument that directly links Grayscale's operational and financial profile to the long-term performance of the digital asset ecosystem.

Going forward, we believe we have multiple levers to grow the amount of tokens in our treasury:

*Organic Growth*: Given we accrue our management fees in token across many of our investment products, we have a natural pool of digital assets that allows for capital-light accumulation of our treasury position over time. GBTC and ETHE, for instance, provide two of the largest pools of Bitcoin and Ethereum in the world through which we can accrue tokens. We may also leverage our significant free cash flow to conduct opportunistic token purchases directly.

*Staking to Earn Yield*: Proof-of-stake protocol assets held in the treasury will be delegated to institutional validators. The resulting staking yield will be reinvested into the treasury, compounding returns and enhancing alignment with long-term network participation.

*Financing*: Many digital asset treasuries are supported by businesses with limited or immaterial operating income and rely primarily on financing transactions for growth. In contrast, Grayscale operates a highly profitable business with no outstanding debt and a simple capital structure. We believe this financial strength provides us with strategic flexibility, enabling us to access a broad spectrum of equity and debt-like structured products as aggressively or conservatively as we desire and to deploy capital efficiently to scale our treasury holdings.

*M&A*: We believe there will only be a select number of digital asset treasuries in the long run, with winners among individual tokens and diversified baskets of tokens. Among these, certain firms will command multiples on NAV (mNAVs) greater than others. We believe our platform is well-positioned to be the consolidator of choice as the digital asset treasury landscape matures, benefiting from our scale, credibility, and specialized sector expertise. Through this positioning, we aim to deliver the leading digital asset treasury strategy for achieving diversified digital asset exposure.

## **Growth Strategy** 
We believe we are still in the beginning of a multi-decade transformation in global finance driven by the adoption of digital assets. As the digital asset ecosystem continues to evolve and institutional adoption accelerates, we believe

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Grayscale is uniquely positioned to continue inventing the asset class in its next phase of growth. We are focused on delivering long-term growth through strategic expansion of our products, services, and distribution capabilities.

***Continue to Innovate and Broaden Solutions***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Double-Down on our Private Funds Franchise*: We intend to grow our suite of 25+ single-asset and multi-asset private funds to capture demand for emerging digital assets with differentiated utility and investor interest. We will leverage our platform to pursue product expansion based on evolving market dynamics, investor demand, and regulatory developments – bringing new digital assets into institutional-grade structures as they mature. Historically, certain of our private funds have gone through a "lifecycle" starting as a private fund, becoming publicly traded on OTC Markets Group, registering as an SEC reporting company and uplisting as an ETP, with increased investor access and transparency at each step of the process. However, our current and future products may not follow this lifecycle as we adapt to the changing regulatory landscape and shifts in investor demand. For example, we may launch private funds that stay private, seek to uplist a private fund directly to an ETP or launch a new fund directly as an ETP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Build on Success of ETP and ETF Product Suite*: With the launch of spot Bitcoin and Ethereum ETPs unlocking secure and regulated access to digital assets through traditional investment vehicles, we believe growth will continue to come from delivering digital asset exposure through public markets. We plan to further grow our ETP and ETF product suite with additional single digital asset ETPs and multi-digital asset ETPs such as Grayscale Digital Large Cap Fund (Ticker: GDLC), enable staking to unlock additional value upon gaining regulatory approval to do so, and explore other products to meet increasing investor appetite, such as "crypto+" products that combine core digital asset exposure with other asset classes or strategies to create enhanced risk-adjusted return profiles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Expand our Active Business*: We plan to build upon our existing actives strategy by providing investors additional solutions-oriented products tailored to meet their unique financial goals, risk tolerances and personal preferences. We expect investor demand to continue to grow beyond simple spot products towards more complex investing strategies across a diverse range of investing themes and exposures. As the digital asset market evolves, we see significant opportunities to deliver alpha through actively managed investment solutions. We are investing in product innovation and portfolio management capabilities to further scale our expertise and differentiated offering in this emerging category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Grow our Treasury Position*: We intend to grow our treasury organically by retaining all or a portion of the digital assets we accrue through our management fees, by staking digital assets on proof-of-stake protocols, through opportunistic financing transactions and opportunistic M&A of other digital asset treasury companies.

***New Vectors for Growth***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Monetize Our Platform*: At Grayscale, we've built a closed-loop engine that uniquely connects two sides of the digital asset economy: founders and protocol developers who are creating new, decentralized innovations, on the one hand, and investors who seek curated, structured and secure access to these opportunities, on the other hand. As the digital asset sector continues to rapidly expand, we believe our platform is the best-positioned to originate investment in new and innovative digital asset tokens and rapidly bring these products to market. We also see potential to further monetize our platform through offerings which can support investor outcomes across a range of financial goals, such as stakeable investment vehicles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Expand into Wealth Management*: We have cultivated an engaged and loyal investor base, many of whom have repeatedly invested in our products over time. These investors often rely on our expertise to identify and provide investment exposure to compelling digital asset opportunities. Building on this trust, we have the potential to become more deliberate in our approach to serving this investor base by expanding into wealth management offerings. This strategy reflects our view that our established relationships position us to deepen investor engagement and drive long-term growth through a broader suite of investment solutions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Geographic Expansion*: Global demand for digital investment solutions is expanding rapidly, particularly in regions with well-developed financial services ecosystems, conducive regulatory frameworks and rising institutional interest. We do not have immediate plans to expand internationally, as the United States remains our primary focus. Nonetheless, the framework that we are developing to grow digital asset investments positions us for breakout opportunities in international geographies in the future. <br>

## **Summary Risk Factors** 
Our business is subject to numerous risks and uncertainties, including those highlighted in the section titled "Risk Factors" immediately following this prospectus summary. The following is a summary of the principal risks we face:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Declines in the market prices of digital assets have in the past caused, and could in the future cause, our revenues to decrease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We derive a substantial portion of our revenues from Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF and, as a result, our results of operations are particularly exposed to investor sentiment toward Bitcoin and Ether.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Increased competition in the digital asset investment industry, and the investment industry more generally, may cause our AUM and revenues to decrease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We may be unable to develop new investment products, and the development of new investment products may expose us to additional costs or operational risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If we are unable to successfully distribute our investment products, then our AUM and revenues could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If we fail to develop, maintain and enhance our brand and reputation, or if there is any negative publicity about us, our industry peers or the industries in which we operate, then our business, financial condition and results of operations may be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•It may be difficult to evaluate our business and future prospects due to our limited operating history and the variability of our operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The failure of a Custodian (as defined herein) to adequately safeguard the digital assets for which we offer investment products, or any disruptions to a Custodian's services, could materially adversely affect our business and harm investors in our investment products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our business depends on attracting and retaining our management team and other key personnel, the failure of which could disrupt our operations and adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Digital assets represent a new and rapidly evolving industry, and our results of operations may be materially adversely affected by the development, acceptance and adoption of Bitcoin, Ether or other digital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The prices of digital assets have experienced extreme volatility in recent periods and may continue to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Due to a lack of familiarity and some negative publicity associated with digital asset trading platforms, existing and potential customers, counterparties and regulators may lose confidence in the digital asset industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Regulatory changes or actions by the U.S. Congress or U.S. federal or state agencies may lead to restrictions in the use of digital assets, mining and validating activity or the operation of digital asset networks or digital asset markets in a manner that adversely affects the prices of digital assets and our results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Digital asset trading platforms may experience fraud, market manipulation, business failures, security failures or operational problems, which may adversely affect the prices of digital assets and, consequently, our results of operations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A determination that a digital asset is a "security" could adversely affect the value of that digital asset and potentially digital assets generally, and therefore adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A determination that a digital asset is a "security" for purposes of the federal securities laws could have adverse regulatory consequences for us and our investment products with respect to the Investment Company Act (as defined herein) and the Investment Advisers Act (as defined herein), and therefore adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our process for analyzing whether or not a particular digital asset is a security or a transaction in a particular digital asset is a securities transaction for purposes of the federal securities laws may not yield results that are consistent with subsequent determinations by the SEC or federal courts, or with similar determinations made by our competitors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our failure or inability to comply with government regulations could materially adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are a holding company and our principal asset after completion of this offering will be our % ownership interest in Grayscale Operating, LLC and we are accordingly dependent upon distributions from Grayscale Operating, LLC to pay dividends, if any, and taxes, make payments under the Tax Receivable Agreement and pay other expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In certain circumstances, Grayscale Operating, LLC will be required to make distributions to us and the other holders of LLC Units, and the distributions that Grayscale Operating, LLC will be required to make may be substantial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are controlled by DCG whose interests in our business may be different than yours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are an "emerging growth company," and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our Class A common stock less attractive to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We will be a "controlled company" as defined under the corporate governance rules of the , and as a result, will qualify for exemptions from certain corporate governance requirements of the .

Before you invest in our Class A common stock, you should carefully consider all the information in this prospectus, including matters set forth under the heading "Risk Factors."

## **The Pre-IPO Reorganization** 
On January 1, 2025, we consummated an internal corporate reorganization (the "Pre-IPO Reorganization") involving the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Grayscale Investments, LLC merged into Grayscale Operating, LLC, with Grayscale Operating, LLC surviving the merger as a wholly owned subsidiary of DCG Grayscale Holdco, LLC ("DCG Grayscale Holdco"), which in turn is wholly owned by DCG, our controlling shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Grayscale Operating, LLC assigned certain contracts related to Grayscale Investments, LLC's role as sponsor of our investment products to Grayscale Investments Sponsors, LLC, which is a wholly owned subsidiary of Grayscale Operating, LLC and succeeded to Grayscale Investments, LLC as the sponsor of our investment products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DCG Grayscale Holdco transferred limited liability units constituting 10% common ownership interest in Grayscale Operating, LLC to GSO Intermediate Holdings Corporation ("GSOIH"), a wholly owned subsidiary of DCG Grayscale Holdco, and GSOIH became the sole managing member of Grayscale Operating, LLC.

The diagram below depicts our organizational structure immediately following the Pre-IPO Reorganization. This chart is provided for illustrative purposes only and does not purport to ‎represent all legal entities within our organizational structure.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

![img52763228_1.jpg](img52763228_1.jpg)

## **Organizational Structure** 
GSO Intermediate Holdings I Corporation was formed as a Delaware corporation on May 2, 2025 and will be renamed to prior to the completion of this offering. Grayscale Holdings will be the issuer of the Class A common stock offered by this prospectus. We currently conduct our business through Grayscale Operating, LLC, a Delaware limited liability company formed in July 2024. Following this offering, Grayscale Holdings will be a holding company and its only assets will be its ownership of LLC Units entitling it to an economic interest in Grayscale Operating, LLC, and its interest as the sole managing member of Grayscale Operating, LLC. All of Grayscale Operating, LLC's outstanding equity interests are currently owned by the following persons and entities, to whom we refer collectively as the "Pre-IPO LLC Members" and both controlled by DCG:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DCG Grayscale Holdco; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GSOIH, which has issued equity awards to certain of our employees under the 2025 Omnibus Incentive Plan (the "Existing Incentive Plan").

In connection with this offering, we intend to enter into the following series of transactions ‎to implement an internal reorganization, which we collectively refer to as the "IPO Reorganization":‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎GSO Intermediate Holdings I Corporation will be renamed to ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Grayscale Holdings' certificate of incorporation will be amended to authorize the issuance of two classes of common stock: Class A common stock and Class B common stock, which we refer to collectively as our "common stock." Each share of Class A common stock is entitled to one vote per share on all matters submitted to a vote of our stockholders and is entitled to economic rights. Each share of Class B common

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

stock is entitled to votes per share on all matters submitted to a vote of our stockholders but is not entitled to economic rights. See "Description of Capital Stock";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the LLC Agreement of Grayscale Operating, LLC will be amended and restated prior to this offering to, among other things, appoint Grayscale Holdings as the sole managing member of Grayscale Operating, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•as sole managing member of Grayscale Operating, LLC, Grayscale Holdings will have sole authority to (a) determine the amount and timing of distributions from Grayscale Operating, LLC and (b) offer LLC Units to future members. Immediately following this offering and after giving effect to the IPO Reorganization, we will be a holding company, and our sole material asset will be our ownership interest in Grayscale Operating, LLC. As the sole managing member of Grayscale Operating, LLC, we will operate and control the business and affairs of Grayscale Operating, LLC and, through Grayscale Operating, LLC and its subsidiaries, conduct our business. As a result, we will consolidate Grayscale Operating, LLC and its subsidiaries in our consolidated financial statements and will report a non-controlling interest related to the membership interests held by the Pre-IPO LLC Members. In addition, because Grayscale Operating, LLC will be under the common control of DCG before and after the IPO Reorganization, we will account for the IPO Reorganization as a reorganization of entities under common control and will initially measure ‎the interests of the IPO LLC Members in the assets and liabilities of Grayscale Operating, LLC at ‎their carrying amounts as of the date of the completion of the IPO Reorganization;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎each of the Pre-IPO LLC Members will be issued shares of our Class B ‎common stock in an amount equal to the number of LLC Units held by each such Pre-IPO ‎LLC Member after the application of the net proceeds from this offering‎;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎under the Amended LLC Agreement, all current and future holders of LLC Units, including the Pre-IPO LLC Members, will ‎have the right, from and after the completion of this offering, to require Grayscale Operating, LLC to ‎redeem all or a portion of their LLC Units for, at our election, newly issued shares of Class A ‎common stock on a one-for-one basis or a cash payment equal to the volume weighted ‎average market price of one share of our Class A common stock for each LLC Unit redeemed ‎‎(subject to customary adjustments, including for stock splits, stock dividends and ‎reclassifications) in accordance with the terms of the Amended LLC Agreement (the ‎‎"Redemption Right"). Additionally, in the event of a redemption request by a holder of LLC ‎Units, we may, at our option, effect a direct exchange of cash or Class A common stock for ‎LLC Units in lieu of such a redemption. A corresponding number of shares of Class B common ‎stock will be cancelled on a one-for-one basis if we, following a redemption request of a holder ‎of LLC Units, redeem or exchange LLC Units of such holder of LLC Units pursuant to the ‎terms of the Amended LLC Agreement. See "Certain Relationships and Related Person ‎Transactions—Amended LLC Agreement." Except for transfers to us pursuant to the ‎Amended LLC Agreement or to certain permitted transferees, the holders of LLC Units are not ‎permitted to sell, transfer or otherwise dispose of any LLC Units or shares of Class B common ‎stock;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎all equity awards issued or issuable by GSOIH under the Existing Incentive Plan will be assumed by Grayscale Holdings, and vested equity awards issued by GSOIH under the Existing Incentive Plan will be exercisable for shares of Class A common stock of Grayscale Holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Grayscale Holdings will enter into a Tax Receivable Agreement that will obligate us to make payments ‎to the Pre-IPO LLC Members and any future party to the Tax Receivable Agreement ‎generally equal to % of the applicable cash savings that we actually realize as a result of ‎Grayscale Holdings' allocable share of ‎certain tax basis adjustments resulting from the purchase of LLC Units from the Pre-IPO LLC ‎Members in connection with or after this offering, future taxable redemptions or exchanges of ‎LLC Units by the holders of LLC Units and from payments made under the Tax Receivable ‎Agreement. We will retain the benefit of the remaining % of these tax savings;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Grayscale Holdings and the Pre-IPO LLC Members will enter into the Stockholders Agreement, ‎which will, among other things, provide that, for so long as the Pre-IPO LLC Members beneficially hold at least % of the aggregate number of outstanding shares of our common stock, which we refer to as the "Substantial Ownership Requirement," approval by the Pre-IPO LLC Members will be required for certain ‎corporate actions;‎

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Grayscale Holdings will issue shares of Class A common stock to the public pursuant to ‎this offering;‎ and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Grayscale Holdings will use all of its net proceeds from this offering (including net proceeds received if ‎the underwriters exercise their option to purchase additional shares of Class A common stock ‎in full) to acquire LLC ‎Units from the Pre-IPO LLC Members (or LLC ‎Units if the underwriters exercise their option to purchase additional shares of Class A common stock in full) at a purchase price per LLC Unit equal to the initial ‎public offering price of Class A common stock after underwriting discounts and commissions.

The diagram below depicts our organizational structure immediately following the IPO Reorganization, this offering and the application of the net proceeds from this offering, assuming no exercise of the underwriters' option to ‎purchase additional shares. This chart is provided for illustrative purposes only and does not purport to ‎represent all legal entities within our organizational structure.‎ ‎

![img52763228_2.jpg](img52763228_2.jpg)

Upon completion of the transactions described above, this offering and the application of the ‎net proceeds from this offering:‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Grayscale Holdings will be appointed as the sole managing member of Grayscale Operating, LLC and will hold ‎LLC Units, constituting % of the outstanding economic interests in Grayscale Operating, LLC (or‎ LLC Units, constituting % of the outstanding economic interests in Grayscale Operating, LLC if the underwriters exercise their option to purchase additional shares of Class A ‎common stock in full);‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the Pre-IPO LLC Members will hold (i) LLC Units, representing approximately % of ‎the economic interest in Grayscale Operating, LLC (or % if the underwriters exercise their option to ‎purchase additional shares of Class A common stock in full) and (ii) through their ownership of ‎Class B common stock, approximately % of the combined voting power of our common stock ‎‎(or % if the

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

underwriters exercise their option to purchase additional shares of Class A common stock in full). See "Organizational Structure," "Certain Relationships and Related Person Transactions" and "Description of Capital Stock" for more information on the rights associated with our common stock and the LLC Units. Upon the completion of this offering there will be LLC Units outstanding. There are no limitations in the Amended LLC Agreement on the ‎number of LLC Units issuable in the future and we are not required to own a majority of LLC ‎Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Investors in this offering will collectively beneficially own (i)‎ shares of our Class A ‎common stock, representing approximately ‎% of the combined voting power in us (or shares and %, respectively, if the underwriters exercise their option to purchase ‎additional shares of Class A common stock in full) and (ii) through our ownership of LLC ‎Units, indirectly will hold approximately ‎% of the economic interest in Grayscale Operating, LLC (or‎ ‎% if the underwriters exercise their option to purchase additional shares of Class ‎A common stock in full).‎

Acquisitions by Grayscale Holdings of LLC Units from the Pre-IPO LLC Members in connection with this offering and future taxable redemptions or exchanges by the Pre-IPO LLC Members of LLC Units for shares of our Class A common stock or cash are expected to produce tax basis adjustments to the assets of Grayscale Operating, LLC that will be allocated to us and thus produce favorable tax attributes. These tax attributes would not be available to us in the absence of those transactions. In connection with the IPO Reorganization, we will enter into the Tax Receivable Agreement that will obligate us to make payments to the Pre-IPO LLC Members and any future party to the Tax Receivable Agreement generally equal to % of the applicable cash savings that we actually realize as a result of these tax attributes and tax attributes resulting from payments made under the Tax Receivable Agreement. We will retain the benefit of the remaining % of these tax savings. See "Organizational Structure—Holding Company Structure and the Tax Receivable Agreement."

## **Implications of Being an Emerging Growth Company** 
As a company with less than $1.235 billion (as adjusted for inflation pursuant to SEC rules from time to time) in revenue during our last fiscal year, we qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). An emerging growth company may take advantage of reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. As an emerging growth company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we may present as few as two years of audited financial statements and two years of related management's discussion and analysis of financial condition and results of operations in this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we will be exempt from the requirement to obtain an attestation report from our auditors on management's assessment of our internal control over financial reporting under the Sarbanes-Oxley Act of 2002 for up to five years following the completion of this offering or until we no longer qualify as an emerging growth company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are permitted to provide reduced disclosure regarding our executive compensation arrangements pursuant to the rules applicable to smaller reporting companies, which means we do not have to include a compensation discussion and analysis and certain other disclosures regarding our executive compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are not required to hold non-binding advisory votes on executive compensation.

In addition to the relief described above, the JOBS Act permits us an extended transition period for complying with new or revised accounting standards affecting public companies. We have elected to use this extended transition period, which means that our consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards on a non-delayed basis.

In this prospectus we have elected to take advantage of some or all of these reduced disclosure requirements, and in the future, we may take advantage of any or all of these exemptions for so long as we remain an emerging growth company. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenue of $1.235 billion (as adjusted for inflation pursuant to SEC rules from time to time) or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of this offering, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

debt or (iv) the date on which we are deemed to be a "large accelerated filer" under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which would occur if the market value of our common stock held by non-affiliates exceeded $700.0 million as of the last business day of the second fiscal quarter of such year.

## **Digital Currency Group** 
DCG, our controlling shareholder, is a global investor, builder, and incubator committed to advancing decentralized ecosystems built on blockchain technology.

After the closing of this offering, DCG will own approximately % of our outstanding common stock (or approximately % if the underwriters exercise their option to purchase additional shares in full).

## **Corporate Information** 
GSO Intermediate Holdings I Corporation was incorporated in the State of Delaware on May 2, 2025. GSO Intermediate Holdings I Corporation is a newly formed corporation, has no material assets and has not engaged in any business or other activities except in connection with the IPO Reorganization. GSO Intermediate Holdings I Corporation will be renamed to prior to the completion of this offering in connection with the IPO Reorganization. Our principal executive offices are located at 290 Harbor Drive, 4th Floor, Stamford, Connecticut 06902 and our telephone number is (212) 668-1427. Our website is www.grayscale.com. Our website and the information contained therein or connected thereto is not incorporated into this prospectus or the registration statement of which it forms a part.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **The Of fering** 

## *This summary highlights information presented in greater detail elsewhere in this prospectus. This summary is not complete and does not contain all the information you should consider before investing in our Class A common stock. You should carefully read this entire prospectus before investing in our Class A common stock, including the "Risk Factors" section and our consolidated financial statements and notes thereto included elsewhere in this prospectus.* 

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock offered by us | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares (or shares if the underwriters exercise their option to purchase additional shares of Class A common stock in full). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock to be outstanding immediately after this offering | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares (or shares if the underwriters exercise their option to purchase additional shares of Class A common stock in full). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class A common stock to be outstanding after conversion of all LLC Units | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares if all outstanding LLC Units held by the Pre-IPO LLC Members were redeemed or exchanged for a corresponding number of newly issued shares of Class A common stock (or shares if the underwriters exercise their option to purchase additional shares of Class A common stock in full). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class B common stock to be outstanding immediately after this offering | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares (or shares if the underwriters exercise their option to purchase additional shares of Class A common stock in full). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Class A common stock and Class B common stock to be outstanding after this offering | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting power held by holders of Class A common stock after giving effect to this offering | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % (or % if the underwriters exercise their option to purchase additional shares of Class A common stock in full). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting power held by the Pre-IPO LLC Members as holders of all outstanding shares of Class B common stock after giving effect to this offering | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % (or % if the underwriters exercise their option to purchase additional shares of Class A common stock in full). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting rights after giving effect to this offering | &nbsp;&nbsp;&nbsp;&nbsp;Each share of Class A common stock will entitle its holder to one vote, and each Class B common stock will entitle its holder to votes. Investors in this offering will hold approximately % of the combined voting power of our common stock (or % if the underwriters exercise their option to purchase additional shares of Class A common stock in full).<br>Class A common stock and Class B common stock generally vote together as a single class on all matters submitted to a vote of our stockholders. See "Description of Capital Stock." |

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

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|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption rights of the holders of LLC Units | &nbsp;&nbsp;&nbsp;&nbsp;Under the Amended LLC Agreement, all current and future holders of LLC Units, including the Pre-IPO LLC Members, will have the right, from and after the completion of this offering, to require Grayscale Operating, LLC to redeem all or a portion of their LLC Units for, at our election, newly issued shares of Class A common stock on a one-for-one basis or a cash payment equal to the volume weighted average market price of one share of our Class A common stock for each LLC Unit redeemed (subject to customary adjustments, including for stock splits, stock dividends and reclassifications) in accordance with the terms of the Amended LLC Agreement. Additionally, in the event of a redemption request by a holder of LLC Units, we may, at our option, effect a direct exchange of cash or Class A common stock for LLC Units in lieu of such a redemption. A corresponding number of shares of Class B common stock will be canceled on a one-for-one basis if we, following a redemption request of a holder of LLC Units, redeem or exchange LLC Units of such holder of LLC Units pursuant to the terms of the Amended LLC Agreement. See "Certain Relationships and Related Person Transactions—Amended LLC Agreement."<br>Except for transfers to us pursuant to the Amended LLC Agreement or to certain permitted transferees, holders of LLC Units are not permitted to sell, transfer or otherwise dispose of any LLC Units or shares of Class B common stock. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use of proceeds | &nbsp;&nbsp;&nbsp;&nbsp;We estimate that the net proceeds to us from this offering will be approximately $ million, or approximately $ million if the underwriters exercise their option to purchase additional shares of Class A common stock in full, assuming an initial public offering price of $ per share (the midpoint of the estimated price range set forth on the cover page of this prospectus), after deducting estimated underwriting discounts and commissions and estimated offering expenses. <br>Each $1.00 increase (decrease) in the public offering price per share would increase (decrease) our net proceeds, after deducting estimated underwriting discounts and commissions, by $ million (assuming no exercise of the underwriters' option to purchase additional shares of Class A common stock). <br>We intend to use the net proceeds that we receive from this offering to purchase LLC Units (or LLC Units, if the underwriters exercise their option to purchase additional shares of Class A common stock in full) from the Pre-IPO LLC Members at a purchase price per LLC Unit equal to the initial public offering  |

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|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;price per share of Class A common stock after underwriting discounts and commissions.<br>Grayscale Operating, LLC will not receive any proceeds from the purchase of LLC Units from the Pre-IPO LLC Members by us.<br>We estimate that the offering expenses (other than the underwriting discounts and commissions) will be approximately $. See "Use of Proceeds." |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Controlled Company | &nbsp;&nbsp;&nbsp;&nbsp;Upon the closing of this offering, entities controlled by DCG will beneficially own more than 50% of the voting power for the election of members of our board of directors and will enter into the Stockholders Agreement. Consequently, we will be a "controlled company" under the rules of the . As a controlled company, we qualify for, and intend to rely on, exemptions from certain corporate governance requirements of the . See "Management—Controlled Company Exemption." |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax Receivable Agreement | &nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Tax Receivable Agreement we expect to enter into with the Pre-IPO LLC Members, we will pay % of the amount of certain cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize to the Pre-IPO LLC Members as a result of (i) any increase in tax basis in Grayscale Operating, LLC's assets resulting from (a) acquisitions by Grayscale Holdings of LLC Units from the Pre-IPO LLC Members in connection with this offering, (b) the acquisition of LLC Units from the Pre-IPO LLC Members using the net proceeds from any future offering, (c) future taxable redemptions or exchanges by the Pre-IPO LLC Members of LLC Units for shares of our Class A common stock or cash or (d) payments under the Tax Receivable Agreement and (ii) tax benefits related to imputed interest resulting from payments made under the Tax Receivable Agreement. Our obligations under the Tax Receivable Agreement will also apply with respect to any person who is issued LLC Units in the future and who becomes a party to the Tax Receivable Agreement. See "Organizational Structure—Holding Company Structure and the Tax Receivable Agreement." |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend policy | &nbsp;&nbsp;&nbsp;&nbsp;Any determination to pay dividends on our Class A common stock will be at the discretion of our board of directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, general business conditions, and other factors that our board of directors considers relevant. See "Dividend Policy." |

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|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;Following this offering and subject to funds being legally available, we intend to cause Grayscale Operating, LLC to make pro rata distributions to the Pre-IPO LLC Members and us in an amount at least sufficient to allow us and the Pre-IPO LLC Members to pay all applicable taxes, to make payments under the Tax Receivable Agreement we will enter into with the Pre-IPO LLC Members and to pay our corporate and other overhead expenses. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk factors | &nbsp;&nbsp;&nbsp;&nbsp;See the section titled "Risk Factors" and other information included in this prospectus for a discussion of factors you should carefully consider before deciding to invest in our Class A common stock. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material U.S. Federal Tax Considerations for Non-U.S. Holders of Common Stock | &nbsp;&nbsp;&nbsp;&nbsp;For a discussion of the material U.S. federal income and estate tax consequences that may be relevant to non-U.S. stockholders, see "Material U.S. Federal Tax Considerations for Non-U.S. Holders of Common Stock." |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposed stock exchange symbol | &nbsp;&nbsp;&nbsp;&nbsp;We intend to apply to list our Class A common stock on under the symbol " ." |

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Unless we indicate otherwise throughout this prospectus, the number of shares of our Class A common stock outstanding after this offering excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of Class A common stock reserved for issuance upon the exchange of LLC Units that will be held by the Pre-IPO LLC Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of our Class A common stock issuable if the underwriters exercise their option to purchase additional shares of Class A common stock from us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shares of Class A common stock reserved for issuance under our Omnibus Incentive Plan. See "Executive and Director Compensation—Equity Incentive Compensation—Omnibus Incentive Plan" for more information regarding our Omnibus Incentive Plan.

Unless we specifically state otherwise, all information in this prospectus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•except for our historical consolidated financial statements and notes thereto included elsewhere in this prospectus, assumes the consummation of the IPO Reorganization described under "Organizational Structure—The IPO Reorganization";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•assumes no exercise of the underwriters' option to purchase additional shares of Class A common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•assumes an initial public offering price of $ per share of our Class A common stock (the midpoint of the estimated price range set forth on the cover page of this prospectus).

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Summary Consolidated Financial and Other Data** 
The following tables present the summary consolidated historical financial data for Grayscale Operating, LLC and its consolidated subsidiaries and summary unaudited pro forma condensed consolidated financial information for Grayscale Holdings for the periods and at the dates indicated. The summary consolidated statements of operations data for the six months ended June 30, 2025 and 2024 and the summary consolidated statement of financial condition data as of June 30, 2025 are derived from the Grayscale Operating, LLC unaudited condensed consolidated financial statements included elsewhere in this prospectus. The summary consolidated statements of operations data for the years ended December 31, 2024 and 2023 and the summary consolidated statement of financial condition data as of December 31, 2024 and 2023 have been derived from the audited consolidated financial statements and notes of Grayscale Operating, LLC and its consolidated subsidiaries included elsewhere in this prospectus. The Pre-IPO Reorganization completed on January 1, 2025 was treated as a reorganization of companies under common control and has been accounted for as a change in reporting entity between entities under common control, as each entity was controlled by DCG. Accordingly, Grayscale Operating, LLC's consolidated financial statements included in this prospectus as of and for the years ended December 31, 2024, and 2023 have been presented giving retroactive effect to the Pre-IPO Reorganization in accordance with ASC 250-10-45-21.

The summary unaudited pro forma condensed consolidated financial information presented below has been derived from Grayscale Holdings' unaudited pro forma condensed consolidated financial statements included elsewhere in this prospectus. GSO Intermediate Holdings I Corporation (to be renamed to prior to the completion of this offering) was formed as a Delaware corporation on May 2, 2025 and has not, to date, conducted any activities other than those incidental to its formation, the IPO Reorganization and the preparation of this prospectus and the registration statement of which this prospectus forms a part.

The summary unaudited pro forma condensed consolidated statement of operations data for the six months ended June 30, 2025 and fiscal year ended December 31, 2024 gives effect to the Pro Forma Transactions, as described under the section titled "Unaudited Pro Forma Condensed Consolidated Financial Information" as if all such transactions had occurred on January 1, 2024. The summary unaudited pro forma condensed consolidated statement of financial condition data as of June 30, 2025 gives effect to the Pro Forma Transactions as if they had occurred on June 30, 2025.

The summary historical financial data and unaudited pro forma condensed consolidated financial information presented below do not purport to be indicative of the results that can be expected for any future period and should be read together with "Capitalization," "Unaudited Pro Forma Condensed Consolidated Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes thereto included elsewhere in this prospectus. The presentation of the summary unaudited pro forma condensed consolidated financial information is prepared in conformity with Article 11 of Regulation S-X. The Pro Forma Transactions include various estimates that are subject to material change and may not be indicative of what our operations or financial position would have been had this offering and related transactions taken place on the dates indicated, or that may be expected to occur in the future. See "Unaudited Pro Forma

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Condensed Consolidated Financial Information" for a complete description of the adjustments and assumptions underlying the summary unaudited pro forma condensed consolidated financial data.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Actual<br>Grayscale Operating, LLC** | **Actual<br>Grayscale Operating, LLC** | **Actual<br>Grayscale Operating, LLC** | **Actual<br>Grayscale Operating, LLC** | **Pro Forma<br>Grayscale Holdings** | **Pro Forma<br>Grayscale Holdings** |
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** | **Six Months Ended June 30,** | **Year Ended <br>December 31,** |
|  | **2025** | **2024** | **2024** | **2023** | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Total revenues | $198775 | $296514 | $506157 | $512707 |  |  |
| Total operating expenses | 76568 | 74660 | 140792 | 100164 |  |  |
| Other income | 1003 | 3033 | 6363 | 20043 |  |  |
| Income before provision for income taxes | 123210 | 224887 | 371728 | 432586 |  |  |
| Provision for income taxes | 841 | 54120 | 89579 | 107633 |  |  |
| Net income | 122369 | 170767 | 282149 | 324953 |  |  |
| Pro forma net income per share of Class A common stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  |  |  |  |  |
| Pro forma weighted average shares of Class A common stock outstanding |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  |  |  |  |  |
| **Other Data:** |  |  |  |  |  |  |
| Net cash provided by operating activities | $110014 | $160247 | $289193 | $152361 |  |  |
| Net cash used in investing activities | (321) | (707) | (1185) | (1789) |  |  |
| Net cash used in financing activities | (111156) | (151903) | (299298) | (44806) |  |  |
| Adjusted Operating Income<sup>(1)</sup> | 129460 | 227541 | 377584 | 427204 |  |  |
| Weighted-average management fee | 1.41% | 1.84% | 1.61% | 2.13% |  |  |
|  | **AUM (in millions)** | **AUM (in millions)** | **AUM (in millions)** | **AUM (in millions)** | **AUM (in millions)** | **AUM (in millions)** |
| Average AUM | 28376 | 32328 | 31459 | 24094 |  |  |

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(1) We define Adjusted Operating Income as net income adjusted to exclude stock-based compensation expense, provision for income taxes, realized and unrealized gains (losses), net, non-recurring executive transition-related charges associated with changes to key executive team members and listing expenses related to the Pre-IPO Reorganization and initial public offering process of the Company. Adjusted Operating Income

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

is a non-GAAP financial measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for more information on our non-GAAP financial measures.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Actual<br>Grayscale Operating, LLC** | **Actual<br>Grayscale Operating, LLC** | **Actual<br>Grayscale Operating, LLC** | **Pro Forma<br>Grayscale Holdings** |
|  | **June 30,** | **December 31,** | **December 31,** | **June 30,** |
|  | **2025** | **2024** | **2023** | **2025** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Balance Sheet Data:** |  |  |  |  |
| Cash and cash equivalents | $98725 | $100188 | $111478 |  |
| Working capital | 77488 | 70746 | 84861 |  |
| Total assets | 123010 | 123383 | 122382 |  |
| Total liabilities | 40883 | 46349 | 30762 |  |
| Member's / stockholders' equity | 82127 | 77034 | 91620 |  |

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The following tables provide a reconciliation of net income to Adjusted Operating Income for the periods presented:

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| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
| Net income, as reported | $122369 | $170767 |
| Adjusted to exclude the following: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 806 | 1289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring executive transition-related charges | 2608 | 2578 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring listing expenses | 2420 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized and unrealized losses (gains), net | 416 | (1213) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 841 | 54120 |
| Adjusted Operating Income | $129460 | $227541 |

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  | **(in thousands)** | **(in thousands)** |
| Net income, as reported | $282149 | $324953 |
| Adjusted to exclude the following: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 2563 | 12725 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring executive transition-related charges | 4392 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring listing expenses | 1391 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized and unrealized (gains), net | (2490) | (18107) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 89579 | 107633 |
| Adjusted Operating Income | $377584 | $427204 |

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Risk Fa ctors** 
*An investment in our Class A common stock involves a significant degree of risk. You should carefully consider the risks described below, which do not necessarily appear in order of importance, and the other information contained in this prospectus, before making an investment in our Class A common stock. If any of the following risks were to occur, then our business, financial condition, results of operations and cash flow could be materially adversely affected. In that case, the market price of our Class A common stock could decline, and you could lose all or part of your investment.*

*The following risks are not the only ones facing our company. Additional risks not currently known to us, or that we currently deem immaterial, may also adversely affect us. You are strongly encouraged to consult your own professional advisors before deciding to invest in our Class A common stock.*

## **Risk Factors Related to Our Business** 
***Declines in the market prices of digital assets have in the past caused, and could in the future cause, our revenues to decrease.***

Substantially all of our revenues are derived from fees as a percentage of the value of our AUM. Declines in the market prices of digital assets have in the past reduced, and could in the future reduce, the dollar value of fees we earn from our investment products, as fees on our investment products are generally denominated in the underlying digital assets. Further, in response to, or otherwise in connection with, declines in the market prices of digital assets, investors in digital assets may sell their shares of our investment products in favor of investments that they perceive to offer greater opportunity or lower risk, thus triggering outflows from our investment products for which we operate a redemption program and further reducing our revenues derived from fees. As a result, our revenues could be adversely affected by declines in the market prices of digital assets.

The market prices of digital assets have historically been subject to significant volatility, including steep declines. For example, after reaching then-record highs in November 2021, total digital asset market capitalization declined by approximately 62% in the 21 months ended September 30, 2023, before rebounding by approximately 209% in the 21 months ended June 30, 2025. The collapse of several companies in the digital asset industry, such as BlockFi Inc. ("BlockFi"), Celsius Network LLC ("Celsius"), Voyager Digital Ltd. ("Voyager"), FTX Trading Ltd. ("FTX") and Three Arrows Capital, as well as Genesis Global Holdco, LLC ("Genesis Holdco"), along with its subsidiaries Genesis Global Capital, LLC ("Genesis Capital") and Genesis Asia Pacific Pte. Ltd. ("Genesis Asia Pacific," and together with Genesis Holdco and Genesis Capital, the "Genesis Entities"), impacted the market prices of digital assets in 2022 and the beginning of 2023. Any similar failure of companies in the digital asset industry in the future could further impact market prices.

Following Grayscale's victory in the D.C. Circuit Court of Appeals in August 2023 challenging the SEC's previous disapproval of spot Bitcoin exchange-traded products ("Bitcoin ETPs"), Bitcoin ETPs were approved for trading in the United States during the first quarter of 2024, coinciding with the price of Bitcoin surpassing its all-time high, and increased institutional adoption. While market prices of many other digital assets have also since recovered and, in some cases, surpassed all-time highs, the market price of any digital asset continues to be subject to significant uncertainty and volatility and may significantly decline in the future without recovery. For more information on the factors contributing to such uncertainty and volatility, see "—Risk Factors Related to Digital Assets—The prices of digital assets have experienced extreme volatility in recent periods and may continue to do so." Furthermore, negative perception and a lack of stability and standardized regulation in the digital asset industry may reduce confidence in the digital asset industry and may result in greater volatility in the market prices of digital assets, including a depreciation in value. While we offer some products that are actively managed, most of our current investment products are not actively managed, and we will not take any actions to take advantage, or mitigate the impact, of significant volatility in the market prices of digital assets. Declines in the market price of digital assets have in the past caused, and could in the future cause, our revenues to decrease.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***We derive a substantial portion of our revenues from Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF and, as a result, our results of operations are particularly exposed to investor sentiment toward Bitcoin and Ether.***

As of June 30, 2025, the Grayscale Bitcoin Trust ETF ("GBTC") and the Grayscale Ethereum Trust ETF ("ETHE") accounted for approximately 75% of our AUM collectively. Fees from GBTC and ETHE collectively comprised approximately 93% of our total revenues for the year ended December 31, 2024. As a result, our results of operations are particularly exposed to the performance of, and investor sentiment toward, Bitcoin and Ether. If the prices of Bitcoin and Ether were to decline, then our revenues associated with these investment products would be adversely affected. The trading prices of many digital assets, including Bitcoin and Ether, have experienced extreme volatility throughout their existence, including in recent periods, and may continue to do so. Volatility may increase or decrease due to various factors including, but not limited to, token-specific events such as the reduction of mining rewards that occur on a programmatic basis, liquidity in the digital asset markets, organization-specific events for entities that hold, or transact in, a significant value of digital assets such as bankruptcies or litigation. For instance, following significant increases throughout the majority of 2020, digital asset prices, including Bitcoin and Ether, experienced significant volatility throughout 2021 and 2022 in response to, among other factors, the collapse of several digital asset companies, including FTX. In particular, during this period the price of Bitcoin peaked at $67,371.70 in November 2021 before it declined to $16,556.29 at the end of 2022, and the price of Ether peaked at $4,776.95 in November 2021 before it declined to $1,201.33 at the end of 2022. From July 1, 2020 through June 30, 2025, the price of Bitcoin ranged from $9,031.09 to $111,241.94 and the price of Ether ranged from $225.27 to $4,776.95. In addition, during the twelve months ended June 30, 2025, the price of Bitcoin ranged from $53,469.64 to $111,241.94 and the price of Ether ranged from $1,465.40 to $4,053.28. Furthermore, GBTC and ETHE each suffered aggregate net outflows of over $21.5 billion and $3.6 billion, respectively, during the year ended December 31, 2024. If shareholders of these investment products continue to sell or redeem their shares in favor of lower-fee alternatives, thus triggering further outflows from GBTC and/or ETHE, then our AUM and revenue from these investment products would continue to decline and our results of operations may be adversely affected.

***We are exposed to a concentration of assets in a particular asset class, which could increase volatility and market risk.***

Unlike traditional investment platforms that hold assets across a variety of asset classes, our investment products are invested exclusively in digital assets. We therefore have concentrated exposure to the digital asset industry, and the success of our business is closely tied to conditions in the digital asset markets, which continue to be extremely volatile. For more information on the factors contributing to such volatility, see "—Risk Factors Related to Digital Assets—The prices of digital assets have experienced extreme volatility in recent periods and may continue to do so."

***Increased competition in the digital asset investment industry, and the investment industry more generally, may cause our AUM and revenues to decrease.***

As of June 30, 2025, we are the world's largest digital asset-focused investment platform by AUM. GBTC and Grayscale Bitcoin Mini Trust ETF ("BTC Mini") are two of the world's largest Bitcoin ETPs, ETHE and Grayscale Ethereum Mini Trust ETF ("ETH Mini," and together with BTC Mini, the "Mini Trusts") are collectively one of the world's largest Ether ETP franchises, Grayscale Solana Trust ("GSOL") is the largest Solana investment vehicle in the U.S. and Grayscale Digital Large Cap Fund ("GDLC") is one of the world's largest crypto index funds. However, the digital asset investment industry, and the investment industry more generally, remains highly competitive. We expect that new services and technologies may continue to emerge and evolve, which may be superior to the digital asset products that we currently provide. We could lose market share to our competitors, which would adversely affect our business, operating results, financial condition, and future prospects. We compete with traditional, alternative and digital asset-focused investment platforms that provide investors with exposure to digital assets across various dimensions, including with respect to fee levels, trading liquidity and market breadth of our investment products, brand recognition, business reputation and our ability to develop new investment products to meet the changing needs of investors.

We face market pressures regarding fee levels in all of our investment products. For example, concurrent with the SEC's approval of the listing and trading of GBTC on NYSE Arca as an ETP, the SEC also approved the listing

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

and trading of numerous other competing ETPs holding Bitcoin on national securities exchanges. These competing investment products charge lower fees than GBTC (and in some cases, initially waived fees altogether), and they are often backed by larger competitors with more diversified businesses that can manage these Bitcoin ETPs at lower costs, either as a result of greater operational efficiencies or economies of scale or as loss leaders due to other revenue sources available to them. Since GBTC and ETHE's uplistings, these products had experienced approximately $23.2 billion and $4.3 billion of net outflows as of June 30, 2025, respectively. Upon uplisting, we lowered GBTC's management fee from 2.0% to 1.5% of its net asset value but kept ETHE's management fee at 2.5% of its net asset value. In addition, in connection with the launch of GBTC and ETHE as ETPs, Grayscale spun off a portion of their assets into BTC Mini and ETH Mini, which, as of the date of this prospectus, are the world's lowest-cost Bitcoin and Ether ETPs, respectively. Nonetheless, continued market pressures on fees, and specifically the availability of several lower fee alternatives offering investors the same exposure to Bitcoin and Ether (including, but not limited to, the Mini Trusts), could lead to additional outflows for GBTC and ETHE.

Further, we face competition with respect to the creation of new spot digital asset ETPs. To date, the SEC has only approved applications under Rule 19b-4 of the Exchange Act to list spot digital asset ETPs that hold Bitcoin and Ether. However, applications for competing digital assets have been filed and are currently pending. If applications to list spot digital asset ETPs, other than those that hold Bitcoin or Ether, are approved, to the extent such competing digital asset ETPs come to represent a significant proportion of the demand for digital assets generally, demand for, and the price of, Bitcoin and Ether could be reduced. Such reduced demand could in turn cause our AUM and revenues to decrease if we do not offer, or are slower than our competitors to offer, ETPs for these competing digital assets. Additionally, new digital assets may be created and, even if products investing in such digital assets are not approved by the SEC as ETPs, they may become popular and compete with Bitcoin or Ether in the digital asset market. Whether we are successful in maintaining our competitive position may be impacted by our timing in entering the market relative to competing ETPs or other digital asset products. Our ability to compete with new digital asset products may be inhibited by regulatory requirements and general uncertainty in the law or other factors. If we cannot keep pace with rapid industry changes to provide new and innovative digital asset products, the use of our products, and consequently our net revenue, could decline, which could adversely affect our business, operating results and financial condition. There can be no assurance that we will be able to develop new ETPs or other new digital asset products on a timeline sufficient to obtain an early market entry advantage.

Moreover, our competition may offer a broader range of investment products that better meet the changing needs of investors, command more visible brand recognition or uphold a more positive business reputation. Some of our competitors, such as traditional investment platforms, operate in a more favorable regulatory environment or have proprietary products, sources of revenue and distribution channels that may provide them and their investment products with certain competitive advantages, including in pricing their investment products to reflect greater operational efficiencies or economies of scale or as loss leaders. Other competitors may offer investment products that command greater trading liquidity or market breadth. In addition, consolidation within our industry, coupled with emerging technologies and fewer barriers to entry, may also put us at a competitive disadvantage.

***Our digital asset treasury strategy would expose us to various risks, including risks associated with the digital asset exposures we expect to hold in our treasury.***

We anticipate implementing a digital asset treasury strategy, and if adopted, this strategy would expose us to various risks, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The digital assets we expect to hold as part of our treasury strategy, either directly or through our investment products, including Bitcoin, Ethereum, XRP and Solana, are highly volatile. For example, Bitcoin is a highly volatile asset that has traded below $55,000 per Bitcoin and above $120,000 per Bitcoin in the 12 months preceding the date of this prospectus. Similarly, Ethereum has traded below $1,500 per Ether and above $4,500 per Ether in the same period. See "—The prices of digital assets have experienced extreme volatility in recent periods and may continue to do so."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our digital asset treasury holdings, which may include holdings of our investment products, would significantly impact our financial results and the market price of our listed securities. Because we intend to purchase digital assets and otherwise increase our overall holdings of digital assets, we expect that the proportion of our total assets represented by our digital asset holdings would increase in the future. As a

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

result, volatility in our earnings may be significantly more than what we have experienced in prior periods, during which we converted digital assets into cash on a programmatic basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A significant portion of our assets would be concentrated in our digital asset holdings. The concentration of our assets in our digital asset holdings would limit our ability to mitigate risks that could otherwise be achieved by holding a more diversified portfolio of treasury assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•To the extent we seek to raise equity or debt financings to fund purchases of digital assets or increase our exposure to digital assets, we may not be able to obtain such financings on favorable terms or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our treasury strategy has not been tested. Although we believe our digital asset treasury, due to the limited supply of digital assets, has the potential to serve as a hedge against inflation in the long term, the short-term price of certain digital assets has declined in recent periods during which the inflation rate increased. If digital asset prices were to decrease or our treasury strategy otherwise proves unsuccessful, our financial condition, results of operations, and the market price of our listed securities would be materially adversely impacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We are subject to counterparty risks, including in particular risks relating to our Custodians. See "—We rely on Coinbase Custody, Anchorage and BitGo to provide us and our investment products with critical custody services for the digital assets for which we offer investment products. The failure of a Custodian to adequately safeguard these digital assets, or any disruptions to its services, could materially adversely affect our business and harm investors in our investment products."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The broader digital assets industry is subject to counterparty risks, which could adversely impact the adoption rate, price, and use of the digital assets we expect to hold in treasury. A series of recent high-profile bankruptcies, closures, liquidations, regulatory enforcement actions and other events relating to companies operating in the digital asset industry have highlighted the counterparty risks applicable to owning and transacting in digital assets and would likely, in the short-term, negatively impact the adoption rate and use of any digital asset we hold. Additional bankruptcies, closures, liquidations, regulatory enforcement actions or other events involving participants in the digital assets industry in the future may further negatively impact the adoption rate, price, and use of any digital asset we hold, limit the availability to us of financing collateralized by the digital asset we hold, or create or expose additional counterparty risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in the accounting treatment of digital asset holdings could have significant accounting impacts, including increasing the volatility of our results. We have adopted ASU 2023-08 as of January 1, 2024, which requires us to measure any digital asset holdings at fair value in our statement of financial position, and to recognize gains and losses from changes in the fair value of any digital asset we hold in net income each reporting period beginning January 1, 2024. ASU 2023-08 also requires us to provide certain interim and annual disclosures with respect to our digital asset holdings. Due in particular to the volatility in the price of the digital assets we expect to hold in treasury, we expect the adoption of ASU 2023-08 to have a material impact on our financial results in future periods if and when we adopt the treasury strategy, increase the volatility of our financial results, and affect the carrying value of any digital asset we hold on our balance sheet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The broader digital assets industry, including the technology associated with digital assets, the rate of adoption and development of, and use cases for, digital assets, market perception of digital assets, and the legal, regulatory, and accounting treatment of digital assets are constantly developing and changing, and there may be additional risks in the future that are not possible to predict.

***Competition from other methods of investing in digital assets could cause our AUM and revenues to decrease.***

Investors may invest in digital assets through means other than our investment products, including through direct investments in digital assets and other financial vehicles, such as securities and derivatives products linked to digital

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

assets. Market and financial conditions, among other reasons outside of our control, may cause investors to find it more attractive to gain exposure to digital assets through methods other than our investment products.

In addition, to the extent digital asset financial vehicles other than our investment products tracking the market prices of digital assets come to represent a significant proportion of the demand for digital assets, large purchases or redemptions of the securities of these digital asset financial vehicles, or private funds holding digital assets, could negatively affect our AUM and reduce our revenues.

***We may be unable to develop new investment products, and the development of new investment products may expose us to additional costs or operational risks.***

Our financial performance depends, in part, on our ability to develop, market and manage new investment products. The development and introduction of new investment products requires continued innovative efforts on our part and may require significant time and resources, as well as ongoing support and investment, and may ultimately prove unsuccessful. Substantial risks and uncertainties are associated with the introduction of new investment products, including, but not limited to, the implementation of new and appropriate operational controls and procedures, shifting investor and market preferences, the introduction of competing investment products, constraints on our ability to manage growth, our investment products' ability to meet their investment objectives and compliance with changing regulatory and disclosure requirements.

These risks and uncertainties may be heightened due to the nature of the digital asset industry in which we operate. The digital asset industry, and the digital asset economy generally, has been characterized by rapid, significant and disruptive products and technologies. These include decentralized applications, decentralized finance ("DeFi"), yield farming, staking, token wrapping, governance tokens, transaction fee mining and validating programs, trading competitions, airdrops and giveaways, staking reward programs and novel digital asset fundraising and distribution schemes. We expect new products and technologies to continue to emerge and evolve, which may be superior to, or render obsolete, the investment products that we currently provide. We may also attempt to innovate our investment products in a manner that enables investors to gain exposure to such new products or technologies, thereby exposing us to risks relating to the regulatory uncertainty surrounding these products and technologies. We cannot predict the effects of new products or technologies on our business.

A failure to continue to innovate and introduce successful new investment products, or to effectively manage the risks and uncertainties associated with such investment products, may negatively impact our market share and reputation, and cause our AUM and revenues to decline.

***Our crypto investment products that are not ETPs may fail to achieve their investment objective for the foreseeable future.***

Generally, our crypto investment products' investment objective is for the value of their shares (based on digital asset per share) to reflect the value of the underlying digital assets held by the investment product, determined by reference to an index price, less that investment product's expenses and other liabilities. Due in large part to the lack of redemption programs and our inability to operate ongoing redemption programs in a manner that complies with applicable securities laws, our crypto investment products that are not ETPs have historically failed to achieve their investment objective, with their shares trading at either premiums or discounts to the value of the underlying digital assets, which at times have been substantial. While we have established and operate redemption programs for GBTC, BTC Mini, ETHE and ETH Mini in reliance on Regulation M exemptive relief in connection with the approvals on January 10, 2024, July 31, 2024, July 23, 2024 and July 23, 2024, respectively, for listing on NYSE Arca, and while we intend to seek approval to list certain of our other investment products on national securities exchanges, there can be no guarantee that we will obtain such approval or that we will be able to obtain the relief necessary to establish redemption programs in connection with our other investment products. As a result, our other investment products may not achieve their investment objective for the foreseeable future, and this failure could limit interest by investors

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

in our other investment products, thereby limiting our AUM and our revenues derived from fees on such investment products.

Despite the approval of the applications under Rule 19b-4 of the Exchange Act to list GBTC, BTC Mini, ETHE and ETH Mini as ETPs, there is no guarantee that similar SEC approval will be obtained for our other investment products, even given the circumstances of the evolving regulatory scheme. We currently have pending applications to list GDLC, GSOL, Grayscale Dogecoin Trust, Grayscale Avalanche Trust, Grayscale Litecoin Trust and Grayscale XRP Trust as ETPs, and have filed applications for new Grayscale Cardano Trust, Grayscale Polkadot Trust and Grayscale Hedera Trust ETPs. Additionally, we currently have pending applications to allow staking in ETHE and ETH Mini's underlying Ether assets, as well as for options on ETHE and ETH Mini. There can be no guarantee that any such applications will be approved by the SEC. No other applications under Rule 19b-4 have been submitted for any of our other investment products. There can be no guarantee that other applications will be submitted, or if they are submitted, that such applications will receive SEC approval. In particular, as of the date of this prospectus, Bitcoin and Ether are the only digital assets with a significant market capitalization that representatives of the SEC have by name indicated that either they or the SEC do not currently view as a security. The SEC may be unlikely to approve a request to list the shares of a spot ETP that holds a digital asset that the SEC believes is a security. Further, the existence of a futures market regulated by the Commodity Futures Trading Commission ("CFTC") for digital assets was central to the prior SEC administration's approval of any request to list shares of a spot ETP holding such digital asset. As of June 30, 2025, there were CFTC-regulated futures markets for several digital assets, including, among others, Bitcoin, Ether, XRP, Dogecoin, Shiba Inu, Cardano and Solana and more recently, the SEC's Crypto Task Force has published a Request For Information on how the SEC should address listing applications for digital asset-based ETPs going forward. Additionally, on July 30, 2025, Cboe BZX Exchange, Nasdaq, and NYSE Arca each filed a proposed rule change with the SEC to amend their respective listing rules to include generic listing standards for shares of certain commodity-based ETPs that satisfy specific requirements. If adopted, a commodity ETP that meets an exchange's generic listing standards would be eligible for listing on such exchange without the need to submit a separate Rule 19b-4 application to the SEC. However, there can be no guarantee that we will be able to establish a redemption program with respect to any of our other crypto investment products, even if a CFTC regulated futures market for an asset were to exist or a new framework were to be developed.

Moreover, our failure to obtain SEC approval to list the shares of our investment products on a national securities exchange, and our ability to establish and operate a redemption program, may expose us to litigation. For example, on March 6, 2023, Alameda Research, Ltd. ("Alameda") filed a suit against us and certain of our affiliates in the Court of Chancery of the State of Delaware, alleging various breach of contract and fiduciary duty claims, in part due to our then-failure to operate a redemption program for shares of GBTC and ETHE. Following GBTC's uplisting as an ETP and implementation of a redemption program, Alameda voluntarily dismissed this suit on January 19, 2024. In the future, we may face additional litigation related to various factors, including a failure to obtain SEC approval or an inability to establish redemption programs for our investment products.

In addition to the lack of redemption programs, there are a number of other factors that may prevent the price of the shares of our investment products from reflecting the value of their underlying digital assets, less expenses and other liabilities. Such factors include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The holding period under Rule 144 under the Securities Act ("Rule 144") for shares of our investment products purchased in private placements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Any technology or market-based changes or developments with respect to any of our investment products, including any forks, airdrops or similar events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The price volatility of the underlying digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Volumes on, or closures of, digital asset trading platforms where the underlying digital assets trade due to fraud, failure, security breaches or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The nonconcurrent trading hours between the over-the-counter market and the global digital asset trading platforms for trading the underlying digital assets.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Our investment products may fail to meet their investment objectives for the foreseeable future due to any of these factors, which could limit interest by investors in our investment products and adversely affect our results of operations.

***If we are unable to successfully distribute our investment products, then our AUM and revenues could be adversely affected.***

We primarily rely on our internal sales force and may rely on various third-party distribution channels, including registered investment advisers ("RIAs"), wirehouses and institutions, to sell our investment products. The digital asset industry is relatively new and, as a result, often requires additional investor education and outreach as compared to traditional asset classes before investors decide to invest in our investment products. If we are unable to successfully distribute our investment products, including by educating potential investors through our distribution channels, then our AUM and revenues could be adversely affected.

Distribution arrangements may be subject to periodic renegotiation that may result in increased distribution costs to us or reductions in the amount of our investment products being marketed or distributed. Also, new fiduciary regulations applicable to our distribution channels could lead to significant shifts in the business models of the intermediaries through which we distribute our investment products and more limited investment product offerings by such intermediaries, potentially resulting in reduced distribution or marketing of certain of our investment products.

In addition, improper activities, as well as inadequate AML diligence conducted by intermediaries through which we distribute our investment products, could create reputational and regulatory harm to us.

***If we fail to develop, maintain and enhance our brand and reputation, or if there is any negative publicity about us, our industry peers or the industries in which we operate, then our business, financial condition and results of operations may be adversely affected.***

Our brand and reputation are critical to our business, as our business depends on earning and maintaining the trust and confidence of investors in digital assets, participants in the digital asset industry and regulators. Any harm to our brand or reputation could hamper our ability to maintain and grow our AUM and revenues.

Our brand and reputation may be harmed by, among other factors: unfavorable publicity regarding the characteristics of, or changes to, our investment products, or the digital asset industry generally; the failure to continue to innovate and introduce successful new investment products; the failure to adhere to contractual requirements or guidelines; the intentional or unintentional misrepresentation of our investment products in advertising materials; the use of underlying digital assets or digital asset networks for illicit or objectionable ends; litigation or regulatory or enforcement actions; operational failures; any failures to comply with legal, tax and regulatory requirements; any perceived or actual weakness in our financial strength or liquidity; privacy incidents and data security compromises or breaches, including the loss or theft of private keys; the failure to manage actual or potential conflicts of interest; ineffective management or monitoring of key third-party relationships; employee, agent or affiliate misconduct and errors; or the actions of other companies in the digital asset industry generally. We may also be the target of social media campaigns criticizing actual or perceived actions or inactions that are disfavored by investors in digital assets, our employees or society at large, which could materially impact potential investors' decisions to invest in our investment products. Additionally, negative perceptions of or publicity concerning DCG, its officers or directors, its affiliates, or other entities with which we or DCG have a relationship or association, including as a result of litigation or investigations against DCG or its affiliates, could negatively affect our brand and reputation, which could adversely affect our business, financial condition and results of operations.

More broadly, because the digital asset industry is relatively nascent, public opinion will continue to evolve and is subject to a loss of confidence. For example, certain events, such as FTX's collapse and the revelation that it had been misusing customer assets, resulted in a loss of confidence in participants of the digital asset industry and negative publicity surrounding the digital asset market more broadly. In addition, there has been focus on the environmental, social and governance considerations regarding the use of electricity and other resources for digital asset mining operations, and such increased focus could negatively impact companies in the digital asset industry that are not directly involved in mining operations, including us. Unfavorable publicity in relation to the digital asset industry,

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

including the viability of any particular digital asset or digital asset trading platforms or the societal impact of digital assets and the infrastructure that supports them, could have a cascading impact on digital assets as an investable asset class, or even the digital asset industry generally, and adversely affect our business, financial condition and results of operations.

***Lack of liquidity, including wide bid/ask spreads, and market disruptions that halt or disrupt trading or create extreme volatility could undermine investor confidence in our investment products and limit investor acceptance of our investment products.***

Shares of GBTC, BTC Mini, ETHE and ETH Mini, as well as our other ETFs, trade on NYSE Arca, and our other crypto investment products trade in the over-the-counter market, but there can be no assurance that the trading markets for our investment products will be maintained or continue to develop. In deciding whether or not to invest in our products, investors may consider the liquidity risks associated with trading our investment products, including the potential lack of an active market for shares of our investment products or wide bid/ask spreads (the difference between the prices at which shares of our investment products can be bought and sold).

These risks can be heightened during periods when there is low demand for our investment products, market conditions are extremely volatile or trading is disrupted. In addition, NYSE Arca or the over-the-counter market can halt the trading of GBTC, BTC Mini, ETHE and ETH Mini, as well as our ETFs and other investment products, for a variety of reasons. Lack of liquidity or disruptions in trading could undermine investor confidence in, and hinder our ability to attract investors to, our investment products.

***Operational risks may materially adversely affect our performance and results of operations, and our risk management strategies may not be effective in mitigating such risks.***

Any issue or adverse circumstance surrounding our operational risks may have a material and adverse effect on our performance and results of operations, and we may not be effective in mitigating such risks. We are exposed to material operational risks arising from a number of factors, including, but not limited to, the risk of inadequate or failed internal processes, employee supervision or monitoring mechanisms, service-provider processes or other systems or controls.

We seek to mitigate risk and have established policies for the types of operational risks we face. However, there are inherent limitations to our current and future risk management strategies, including risks that we have not appropriately anticipated or identified. Our risk management policies may not adequately prevent losses if our practices are not effective in preventing failures. In addition, we may elect to adjust our risk management policies to allow for an increase in risk tolerance, which could expose us to the risk of greater losses. Accurate and timely enterprise-wide risk information is necessary to enhance management's decision-making in times of crisis. Operational errors may subject us to financial losses, which may be significant. In addition to financial losses, these errors present the risk of dissatisfaction by investors in digital assets. If our risk management framework proves ineffective or our enterprise risk management information is incomplete or inaccurate, then we could suffer unexpected losses, which could materially adversely affect our business, financial condition and results of operations.

Further, digital asset transfers recorded on a blockchain ledger are typically not reversible without the consent and active participation of the recipient of the transaction. Once a transaction has been verified and recorded in a block that has been added to the blockchain, an incorrect transfer or theft of digital assets generally will not be reversible, and we may not be capable of seeking compensation or any recourse for any such transfer or theft. Although we have processes and procedures in place to limit any such incorrect or fraudulent transfers, it is possible that, through computer or human error or theft or criminal action, our digital assets or those of our investment products could be transferred from our or their accounts in incorrect amounts or to unauthorized third parties or uncontrolled accounts. Operational errors or significant operational delays could materially negatively impact our ability to conduct our business, which could adversely affect our results of operations due to potentially higher expenses and lower revenues, create liability for us or negatively impact our reputation. Recurring operational issues may raise concerns among regulators regarding our governance and control environment.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

We continually assess our risk profile and risk management processes to identify opportunities for improvement and to consider whether we need to address new technologies and innovations in our risk management processes and policies. While we have not identified any material gaps with respect to recent digital asset market events, we cannot guarantee that our risk management processes will continue to be effective in preventing or mitigating losses from future digital asset market events.

***In the event that our employees, agents or affiliates engage in misconduct or commit errors, our business, results of operations and reputation may be materially adversely affected.***

Misconduct or error by our employees, agents or affiliates could subject us to legal liability, financial losses and regulatory sanctions and materially adversely affect our business, results of operations and reputation.

Employee, agent or affiliate errors, including errors in the transfer of digital assets, could expose us to the risk of material losses even if the errors are detected. Although we have implemented processes and procedures and provide trainings to our employees and agents to reduce the likelihood of error, these efforts may not be successful. There may be confusion among employees, agents and affiliates, particularly in a fast-growing company like ours, with respect to compliance obligations, including confidentiality, data access and conflicts of interest. Misconduct could include engaging in improper or unauthorized activities, misappropriating investor funds or information, failing to supervise other employees or service providers or improperly using confidential information.

Moreover, we frequently engage in a wide variety of activities and maintain relationships with a significant number of individuals and companies in the digital asset industry. Although we have guidelines in place that are designed to prevent and protect against conflicts of interest, these activities and relationships could create actual or potential conflicts of interests in management decisions that we make.

Further, the inappropriate or unauthorized use of social media platforms, including blogs, social media websites and other forms of internet-based communications, which allow individuals access to a broad audience of consumers and other interested persons by our employees, agents or affiliates, could increase our costs, cause damage to our brand, lead to litigation or result in information leakage. Despite our efforts to clearly define our mission and strategy and accurately characterize our investment products, our employees, agents or affiliates may engage in activities either in their official capacity, or in their unofficial capacities, that conflict, or are incongruent, with our values. Any instance of such discontinuity could negatively impact our relationships with counterparties and investors in digital assets and our business, results of operations and reputation.

It is not always possible to deter misconduct or errors, and the precautions we take to prevent and detect them may not be effective in all cases. If we were found to have not met our regulatory oversight and compliance and other obligations, then we could be subject to regulatory sanctions, financial penalties and restrictions on our activities for failure to properly identify, monitor and respond to potentially problematic activity, which could seriously damage our reputation. Our employees, agents and affiliates could also commit misconduct or errors that subject us to financial claims for negligence, as well as regulatory actions, or result in financial liability.

***It may be difficult to evaluate our business and future prospects due to our limited operating history and the variability of our operating results.***

We have a limited operating history on which an investor might evaluate our business and future prospects. We began our operations and introduced our first investment product, GBTC, in 2013. Our historical growth should not be considered indicative of our ability to achieve or maintain growth in future periods. There is no assurance that we will be successful in growing our business, and the likelihood of success must be considered in light of our limited operating history. Even if we accomplish our growth objectives, we may not generate the anticipated cash flows or profits from such growth objectives. Furthermore, we have concentrated exposure to the digital asset industry, and our operating results have been and will continue to be closely tied to conditions in the digital asset markets, which continue to be extremely volatile. Our operating results have in the past and may in the future vary considerably as a result of our concentrated exposure to such volatility.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Our ability to accurately forecast our future results of operations is limited and subject to a number of uncertainties, including our ability to plan for and model future growth, as well as uncertainties and volatility underpinning the digital asset industry. For example, our revenues and expenses may fluctuate due to costs associated with new investment products, which may adversely impact our results of operations. Additionally, we have encountered, and may in the future encounter, risks and uncertainties frequently experienced by growing companies in rapidly changing industries, such as unforeseen operating expenses, difficulties, complications, delays and other known or unknown factors that may result in losses in future periods. If our results of operations do not meet our expectations in future periods, then our business, financial condition and results of operations may be harmed.

***We rely on Coinbase Custody, Anchorage and BitGo to provide us and our investment products with critical custody services for the digital assets for which we offer investment products. The failure of a Custodian to adequately safeguard these digital assets, or any disruptions to its services, could materially adversely affect our business and harm investors in our investment products.***

We rely on Coinbase Custody Trust Company, LLC ("Coinbase Custody"), Anchorage Digital Bank N.A. ("Anchorage") and BitGo Trust Company, Inc. ("BitGo"), which are "qualified custodians" for purposes of Rule 206(4)-2(d)(6) under the Investment Advisers Act of 1940, as amended (the "Investment Advisers Act") with respect to the digital assets underlying our investment products (each a "Custodian" and collectively, the "Custodians"), to provide us and our investment products with critical custody services. The failure of any Custodian to adequately safeguard such digital assets, or any disruptions to its business operations resulting from business failures, financial instability, insolvency, security failures, regulatory changes, operational problems or other factors, could have an adverse impact on our ability to access critical services and be disruptive to our operations. Such disruptions could require us to replace the affected Custodian. See "—We rely on third-party service providers, which subjects us to risks that we may not be able to control or remediate."

If we decide, or are required, to replace a Custodian as the custodian of a particular investment product's digital assets, then transferring maintenance responsibilities of the custody accounts that store private keys to another custodian may be complex. Such transfer could subject digital assets to the risk of loss. We may be unable to replace the Custodian with respect to any of our investment products, in which case we could be required to dissolve that particular investment product and liquidate its assets. Such a scenario could adversely affect our business, operating results and financial condition.

In addition, we rely on the security procedures and infrastructure of the Custodians to safeguard the digital assets underlying our investment products, which could be impacted by hacks or other malicious actions directed at the Custodians, thus putting our digital assets at risk. There is no guarantee that the Custodians will maintain adequate insurance or that insurance coverage will cover such loss. Damage to the infrastructure or the loss of private keys may render the digital assets inaccessible and adversely impact the value of the digital assets in question. In addition, changes to the protocol, like forks, could damage the reputation of digital assets or materially adversely affect our business.

Moreover, the legal rights of investors with respect to digital assets held on their behalf by a third-party custodian, such as the Custodians, are currently uncertain in insolvency proceedings. The custody agreements among us, our investment products and the applicable Custodian contain an agreement to treat the digital assets credited to our custody accounts as financial assets under Article 8 of the New York Uniform Commercial Code ("Article 8"), in addition to stating that the applicable Custodian will serve as fiduciary and custodian on our investment products' behalf. Coinbase Custody's parent, Coinbase Global, Inc. ("Coinbase Global"), has stated in its public securities filings that in light of the inclusion in its custody agreements of provisions relating to Article 8, it believes that a court would not treat custodied digital assets as part of its general estate in the event Coinbase Custody were to experience insolvency. However, due to the novelty of digital asset custodial arrangements, courts have not yet considered this type of treatment for custodied digital assets, and it is not possible to predict with certainty how courts would rule in such a scenario. If a Custodian became subject to insolvency proceedings and a court were to rule that the custodied digital assets were part of the Custodian's general estate (and not the property of our investment products), then our investment products could be treated as general unsecured creditors in the Custodian's insolvency proceedings. Our investment products could then be subject to the loss of all or a significant portion of their digital assets.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***We rely on third-party service providers, which subjects us to risks that we may not be able to control or remediate.***

We outsource some of our operational activities and accordingly rely on relationships with many third-party service providers. Our operations could be interrupted if our third-party service providers experience any disruptions to their businesses resulting from business failures, financial instability, security failures including cybersecurity breaches, government-mandated regulation, operational problems or other factors.

We rely on third parties for certain services, including, but not limited to, custodial and brokerage services, creation and redemption of shares of our investment products, marketing, fund administration and accounting and index price determination. In particular, we rely on financial intermediaries to facilitate the creation, and if available, the redemption, of shares of our investment products and the purchase and sale of the underlying digital assets in connection with such creation and redemption; marketing agents to review marketing materials and provide prospectuses to financial intermediaries and other marketing services; fund administrators to keep the operational records of our investment products, prepare and file certain regulatory filings and provide accounting services; and index providers to determine the index prices of the underlying digital assets for which we offer investment products.

These third parties may be subject to financial, legal, regulatory, and labor issues, cybersecurity incidents, data theft or loss, break-ins, computer viruses or vulnerabilities in their code, denial-of-service attacks, sabotage, acts of vandalism, loss, disruption, instability of third-party banking relationships, privacy breaches, service terminations, disruptions, interruptions and other misconduct. They are also vulnerable to damage or interruption from human error, power loss, telecommunications failures, fires, floods, earthquakes, hurricanes, tornadoes, pandemics and similar events.

Because of the inherent risk in our reliance on third parties to provide these services and to facilitate certain of our business activities, we face increased operational risks. See "—Risk Factors Related to Regulation and Litigation—Cybersecurity incidents and other issues related to our information systems, technology and data may materially adversely affect us."

In addition, these third parties may breach their agreements with us, disagree with our interpretation of contract terms or applicable laws and regulations, refuse to continue or renew these agreements on commercially reasonable terms or at all, fail or refuse to process transactions or provide other services adequately, take actions that degrade the functionality of our services, impose additional costs or requirements on us or our investment vehicles, or give preferential treatment to competitors. There can be no assurance that third parties that provide services to us or to our investment vehicles on our behalf will continue to do so on acceptable terms, or at all, or if they will be able to expand their services to meet our needs in the future.

If these third-party service providers experience difficulties or can no longer provide their services or terminate their services for any reason, and we are unable to replace them on a timely basis, then our operations could be interrupted, including for a significant period, and the attractiveness of our investment products could be adversely affected. For example, if an index provider is unable to provide an index price for an investment product or we determine that their index price does not accurately reflect the market price of the underlying digital asset or that, in the event of a fork, it is based on an inappropriate underlying digital asset, then we may be required to use a different index provider, which could adversely affect the operation and attractiveness of our investment products. To the extent that we are unable to find a suitable replacement at all, we may be required to dissolve a particular investment product and liquidate its assets. Any of these events could adversely affect our business, financial condition and results of operations.

There can be no assurance that third parties that provide services to us or to our investment vehicles on our behalf will continue to do so on acceptable terms, or at all. If any third party does not adequately or appropriately provide their services or perform their responsibilities to us or our investment vehicles on our behalf, such as if third-party service providers close their data center facilities without adequate notice, are unable to restore operations and data, fail to perform as expected or experience other unanticipated problems, we may be unable to procure alternatives in a timely and efficient manner and on acceptable terms, or at all, and we may be subject to business disruptions, losses or costs to remediate any of the deficiencies, customer dissatisfaction, reputational damage, legal or regulatory

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

proceedings or other adverse consequences, which could adversely affect our business, financial condition and results of operation.

***Our inability to maintain adequate relationships with third-party banking partners may adversely affect our business, financial condition and results of operations.***

We may be harmed by the loss of any third-party banking partners. As a result of the many regulations and regulatory uncertainties applicable to digital assets, the risks of digital assets generally, and pressure from their regulators, many financial institutions have decided, and others may in the future decide or be forced, to not provide bank accounts or access to bank accounts, payment services or other financial services to companies providing investment products holding digital assets. A number of such companies have had their existing bank accounts closed by their banking partners. Any inability to procure or keep banking services would have a material and adverse effect on us. Similarly, continued general banking difficulties may decrease the utility or value of digital assets or harm public perception of these assets.

For example, in March 2023, Silicon Valley Bank and Signature Bank were placed into receivership. Also, in March 2023, Silvergate Bank announced plans to wind down and liquidate its operations. Following these events, a number of companies that provide digital asset-related services have been unable to find banks that are willing to provide them with bank accounts and banking services. Although these events did not have a material impact on Grayscale or any of our investment products, it is possible that a future closing of a bank with which Grayscale or any of our investment products has a financial relationship could subject us or our investment products to adverse conditions and pose challenges in finding an alternative suitable bank to provide Grayscale or our investment products with bank accounts and banking services.

Consequently, if we cannot maintain sufficient relationships with the third-party banking partners that provide these services, banking regulators restrict or prohibit banking of digital asset businesses, or these banking partners impose significant operational restrictions, then it may be difficult for us to find alternative banking partners, which may result in a disruption of our business and have an adverse effect on our reputation, business, financial condition and results of operations.

***Our business depends on attracting and retaining our management team and other key personnel, the failure of which could disrupt our operations and adversely affect our business.***

Because we operate in a relatively new industry that requires skilled personnel with specific knowledge and expertise, the future success of our business depends on the services of our management team and other key personnel for conducting our business, developing new investment products and establishing and maintaining relationships with key business counterparties. Our policy has been to provide members of our management team and other key personnel with a supportive professional working environment and compensation and benefits that we believe are competitive with other companies in the digital asset investment industry. Nonetheless, they may choose to quit Grayscale in favor of other pursuits.

In addition, our ability to recruit and retain new members of our management team and other key personnel depends on a number of factors, including, but not limited to, a competitive labor market, our ability to offer competitive salaries and equity incentive programs, and our brand and reputation. As we grow and evolve, we may need to implement more complex organizational management structures, adapt our corporate culture and work environment, streamline our organization or adjust the size and structure of our workforce to scale and execute our long-term growth plans. These changes could have an adverse impact on our culture and employee morale, which could, in turn, adversely affect our reputation as an employer and harm our ability to recruit and retain high-quality members of our management team and other key personnel.

The loss of any member of our management team or other key personnel, and our inability to recruit individuals to replace them, could disrupt our operations and adversely affect our business.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Our officers, directors, employees and large shareholders may have conflicts of interest with respect to their positions or interests in certain entities and other initiatives.***

We frequently engage in a wide variety of transactions and maintain relationships with a significant number of third parties in connection with our platform. These transactions and relationships could create potential conflicts of interest in management decisions that we make. For instance, certain of our officers, directors and employees are active investors in digital asset projects and other growth companies, and may make investment decisions that favor projects in which they have personally invested. Certain of our large shareholders also make investments in these projects. As we expand our operations and the number of offerings on our platform, we may confront increasing numbers of potential conflicts of interest related to our officers' and directors' trading activity. If we fail to manage these conflicts of interests, our business may be harmed and our brand, reputation and credibility may be adversely affected.

***The success of any of our hedging strategies is subject to risks and uncertainties.***

We have in the past used, and may in the future continue to use, a number of financial instruments and derivatives, such as options, swaps and forward contracts, to hedge our exposures, including, but not limited to: protect against possible changes in the market value of our assets resulting from volatility in the digital asset markets and changes in interest rates; protect unrealized gains in the value of our digital assets or our management fees receivable paid in digital assets; facilitate the sale of any of our digital assets; hedge the interest rate risk on any of our assets or liabilities; or to any other end that we deem appropriate.

The success of any of our hedging strategies will depend, in part, on our ability to correctly assess the degree of correlation between the performance of our financial instruments and derivatives and the performance of the assets being hedged. Since the characteristics of many assets change as the markets evolve or time passes, the success of our hedging strategies will also be subject to our ability to continually recalculate, readjust and execute hedges in an efficient and timely manner. In addition, while we may enter into hedging transactions to reduce risks, such transactions may actually increase risks or result in a poorer overall performance for us than if we had not engaged in such transactions.

***Any acquisitions, partnerships or joint ventures that we make or enter into could require significant management attention, disrupt our business and harm our financial condition.*** 

We may in the future seek to acquire or invest in businesses, products or technologies that we believe could complement or expand our platform, enhance our technical capabilities or otherwise offer growth opportunities. The pursuit of potential acquisitions may divert the attention of management and cause us to incur various expenses in identifying, investigating and pursuing suitable acquisitions, whether or not such acquisitions are completed. In addition, we have limited experience in acquiring other businesses. We may not successfully identify desirable acquisition targets, or if we acquire additional businesses, we may not be able to integrate them effectively or obtain the expected benefits of the acquisition on a timely basis or at all. Acquisitions could also result in dilutive issuances of equity securities or the incurrence of debt, as well as unfavorable accounting treatment and exposure to claims and disputes by third parties, including intellectual property claims, indemnification claims, regulatory claims and earn-out obligations, which may not currently exist and cannot be accurately predicted. We may also not generate sufficient financial returns to offset the costs and expenses related to any acquisitions. In addition, if an acquired business fails to meet our expectations, our business, financial condition, cash flows and results of operations may suffer. Further, regulators may scrutinize our proposed business combinations and acquisitions given the regulatory landscape in which we operate, and regulatory approvals may be required for the completion of certain business combinations or acquisitions. We may be unable to pursue opportunities that would be beneficial to our business, which would be harmful to our business and financial condition.

***Geopolitical events or macroeconomic conditions outside of our control could adversely affect our AUM, revenues and net income.***

Our AUM, revenues and net income are subject to geopolitical events and macroeconomic conditions outside of our control, and their impact on the digital asset markets and investors in digital assets. The United States and other

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

key international economies have experienced cyclical downturns from time to time in which economic activity declined, resulting in lower consumption rates, restricted credit, reduced profitability, weaknesses in financial markets, bankruptcies and overall macroeconomic uncertainty. Such adverse macroeconomic conditions have impacted in the past, and may impact in the future, the digital asset economy, although the extent of such impacts remains uncertain and dependent on a variety of factors, including, but not limited to, market adoption and acceptance of digital assets, global trends in the digital asset economy, central bank monetary policies, instability in the global banking system, volatility and disruptions in the capital and credit markets, and other events beyond our control. For example, in the past, capital and credit markets have experienced extreme volatility and disruptions, resulting in steep declines in the value of digital assets. Geopolitical events, such as trade wars, tariffs and foreign exchange limitations, can also increase the severity and levels of unpredictability globally and increase the volatility of global financial and digital asset markets. To the extent macroeconomic conditions and digital asset markets materially deteriorate, or any decline continues for a prolonged period, our AUM, revenues and net income, as well as our ability to attract investors in our investment products, could be adversely affected. Moreover, even if macroeconomic conditions were to improve or otherwise not deteriorate, there is no guarantee that the digital asset economy would similarly improve or not deteriorate.

Further, in 2022 and 2023, a number of blockchain protocols and digital asset financial companies suffered from insolvency and liquidity crises. Some of these events are alleged, or have been held, to be the result of fraudulent activity by insiders, including misappropriation of customer funds and other illicit activity and internal controls failures. In connection with these events, concerns were raised about the potential for a market condition where the failure of one company leads to the financial distress of other companies in the digital asset industry, which has the potential to depress the prices of digital assets used as collateral by other companies. If such a market condition were to become widespread in the digital asset economy, then we could suffer from reduced interest by investors in our investment products. Further, forced selling of digital assets by distressed companies could lead to lower digital asset prices.

Moreover, actual events involving limited liquidity, defaults, nonperformance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry, or the financial services industry generally, or concerns or rumors about any such events or other similar risks, have in the past, and may in the future, lead to market-wide liquidity problems. For example, in March 2023, Silicon Valley Bank and Signature Bank were accepted into receivership, and Silvergate Bank announced plans to wind down and liquidate its operations. In connection with these issues and issues with other financial institutions, the prices of certain fiat-backed stablecoins were temporarily impacted, which negatively impacted investor perception of digital assets and their perceived riskiness as an asset class and may be similarly impacted again in the future. In addition, a number of digital asset companies were unable to find banks that were willing to provide them with bank accounts and banking services. Although these events did not have a material impact on us, it is possible that a future closing of a bank with which we have a financial relationship could subject us to adverse conditions and pose challenges in finding an alternative suitable bank.

If the unpredictability or volatility resulting from geopolitical events or macroeconomic conditions continue or worsen, then there could be additional negative ramifications, such as additional market-wide liquidity problems or limitations on access to deposits and investments for customers of affected banks and certain banking partners, and our AUM, revenues and net income could be adversely affected.

***Catastrophic and unpredictable events could have a material adverse effect on our business, financial condition or results of operations.***

An act of terrorism, war, pandemic, cyberattack, power failure, natural disaster or other catastrophic or unpredictable event could have a material adverse effect on our business, financial condition or results of operations. Acts of terrorism, war, labor activism or unrest and other geopolitical events could cause disruptions to our operations or the economy as a whole. In the event of a pandemic, a natural disaster, including a major earthquake, blizzard or hurricane or a catastrophic event, including a cyberattack or power or telecommunications failure, we may be unable to continue our operations and endure reputational harm, delays in the development of new investment products, disruptions in the delivery of mining or validating equipment in connection with the digital assets for which we offer investment products or breaches of data security and loss of critical data, all of which could have an adverse effect on

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our results of operations. Such events could also affect the health and productivity of our employees. If pandemics, natural disasters or catastrophic events concurrently impact the data centers that we rely on, then our operations may be delayed, and we may suffer additional losses, both financial and otherwise. In addition, a failure of the exchanges on which our investment products' shares trade to function properly could cause a material disruption to our business. We do not maintain insurance sufficient to compensate us for the potentially significant losses that could result from these disruptions, the effects of which may be further increased if we do not implement a disaster recovery plan.

Further, catastrophic and unpredictable events could affect the ability of our third-party service providers to continue to provide essential services, including, but not limited to, custodial and brokerage services, creation and redemption of shares of our investment products, marketing, fund administration and accounting, index price determination and IT and telecommunications systems. If we or our service providers are unable to respond adequately or in a timely fashion, then these failures may result in a loss of revenues or increased expenses, either of which would have a material adverse effect on our business, financial condition or results of operations.

## **Risk Factors Related to Digital Assets** 
***Digital assets represent a new and rapidly evolving industry, and our results of operations may be materially adversely affected by the development, acceptance and adoption of Bitcoin, Ether or other digital assets.***

Digital assets and their underlying networks and other cryptographic and algorithmic protocols governing the creation, transfer and usage of digital assets represent a new and rapidly evolving industry. For example, the first digital asset, Bitcoin, was launched in 2009. Ether was launched in 2015 and, along with Bitcoin, was one of the first cryptographic digital assets to gain global adoption and critical mass. Our results of operations may be closely correlated with the development, acceptance and adoption of Bitcoin, Ether or other digital assets as the industry continues to evolve. The realization of one or more of the following risks could materially adversely affect our results of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Generally, digital assets have only recently become selectively accepted as a means of payment by retail and commercial outlets, and use of digital assets by consumers remains limited. Banks and other established financial institutions, whether voluntarily or in response to regulatory feedback, may refuse to process funds for transactions denominated in digital assets; process wire transfers to or from digital asset trading platforms, digital-asset-related companies or service providers; or maintain accounts for persons or entities transacting in digital assets. As a result, the prices of digital assets generally may be largely determined by speculators, miners and validators, thus contributing to price volatility that makes retailers less likely to accept digital assets as a form of payment in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Banks may choose to not provide banking services, or may choose to cut off banking services, to businesses that provide digital asset-related services or that accept digital assets as payment, which could dampen liquidity in the market and damage the public perception of digital assets generally or any one digital asset in particular, and their or its utility as a payment system, which could decrease the prices of digital assets generally or individually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Certain digital assets are seen as a potential store of value, in part due to their limited supply, which may attract investors seeking to preserve their wealth during economic downturns. However, adoption of digital assets as a store of value remains limited because of, among other things, the volatility of digital asset prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Users, developers, miners and validators may switch to, or adopt, certain digital asset networks at the expense of their engagement with other networks, which may negatively impact the digital assets supported by latter networks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In recent years, several federal and state regulatory bodies, such as the SEC, have brought enforcement actions against participants in the digital asset industry. In addition, several companies in the industry, such as BlockFi, Celsius, Voyager, FTX and Three Arrows Capital in 2022 and the Genesis Entities in 2023, have collapsed. The negative publicity associated with these events has decreased investor confidence in digital assets, and any similar events in the future could result in investors selling their digital assets in favor of investments that they perceive to offer lower risk.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Many digital asset networks are in the early stages of developing partnerships and collaborations, all of which may not succeed and adversely affect the usability and adoption of the digital assets supported by these networks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Many digital asset networks have limited operating histories and are still in the process of developing and making significant decisions that will affect the design, supply, issuance, functionality and governance of their respective digital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Digital asset networks may not have implemented all software patches, upgrades and other changes required to maintain the safety of their protocols, which could introduce security issues, bugs, software errors or otherwise adversely affect the respective networks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A percentage of users and validators of a digital asset network could vote to create a soft or hard fork in a digital asset network, resulting in the operation of multiple separate networks, which could adversely affect their respective digital assets. Further, hard forks can result in contentious outcomes, leading some users to attempt to negatively impact the use or adoption of the digital asset network that forked. For example, in August 2017, Bitcoin forked and a new digital asset, Bitcoin Cash, was created, as a result of a years-long dispute over how to increase the rate of transactions on the Bitcoin network. This hard fork was contentious, and some users of the Bitcoin Cash network may harbor ill will toward the Bitcoin network.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Certain privacy-preserving features have been or are expected to be introduced to a number of digital asset networks. Digital asset trading platforms or businesses that facilitate transactions in digital assets may be at an increased risk of criminal enforcement or civil lawsuits, or of having banking services cut off if there is a concern that these features interfere with the performance of AML duties and economic sanctions checks, and these features may become the target of government regulation and enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Many digital asset networks are developing new features to address fundamental issues with respect to speed, scalability and energy usage. If these issues are not successfully addressed or do not receive widespread adoption, then they could adversely affect their respective digital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Digital asset mining operations can consume significant amounts of electricity, which may have a negative environmental impact and give rise to public opinion against, or government regulations restricting, the use of electricity for mining operations. Additionally, miners may be forced to cease operations during an electricity shortage or power outage, which could adversely affect digital asset networks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Security issues, bugs and software errors have been identified with many digital assets and their underlying networks, some of which have been exploited by malicious actors. There are also inherent security weaknesses in some digital assets, such as when creators of certain digital asset networks use procedures that could allow hackers to counterfeit tokens. Any weaknesses identified with a digital asset could adversely affect its price, security, liquidity and adoption. If a malicious actor or botnet (a collection of computers controlled by networked software coordinating the actions of the computers) obtains a majority of the processing or validating power on a digital asset network, as has happened in the past, then it may be able to manipulate transactions on or otherwise alter the underlying network, which could cause financial losses to holders, damage the network's reputation and security and adversely affect the network's value. Moreover, the functionality of that network may be negatively affected such that it is no longer attractive to users, thereby dampening demand for the overlying digital asset. Even if another digital asset were affected by similar circumstances, then any reduction in confidence in the source code or blockchain technology underlying digital assets could negatively affect the demand for digital assets generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The development of new technologies for mining, such as improved application-specific integrated circuits (commonly referred to as ASICs), or changes in industry patterns, such as the consolidation of processing or validating power in a small number of large mining or validating pools, could reduce the security of digital asset networks, lead to increased liquid supply of digital assets and reduce a digital asset's price and attractiveness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The open-source structure of many digital asset network protocols means that developers and other contributors, including those whose contributions may be important to the protocol, are not always directly compensated for their contributions in developing and maintaining such protocols. As a result, developers

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and other contributors of a particular blockchain or digital asset may lack a financial incentive to maintain or develop the network or may lack the resources to adequately address emerging issues. Alternatively, some developers and other contributors may be funded by companies whose interests are at odds with other participants in a particular digital asset network. A failure to properly monitor and upgrade protocols could damage that network.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Certain blockchains permit concentrated ownership or an "admin key," allowing a small group of holders to have significant unilateral control and influence over key decisions related to their underlying networks, such as governance decisions and protocol changes, as well as the prices of such digital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Certain blockchains or protocols use decentralized forms of governance that are evolving and may not be capable of making critical decisions in a timely or organized manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The discovery of technological issues that result in disabled functionalities, exposure of users' personal information, theft of users' assets and other negative consequences could require resolution with the attention and efforts of global miner, validator, user and development communities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Potential use cases for digital assets, such as smart contracts, remain uncertain, have not received widespread adoption and are subject to additional risks. For example, since smart contracts typically cannot be stopped or reversed, vulnerabilities in their programming or design can have damaging effects. Further, smart contracts have been manipulated, exploited or used in ways that were not intended or envisioned by their creators.

Digital assets are a new asset class that represents a technological innovation subject to a high degree of uncertainty, and there is no assurance that digital assets will maintain their value over the long term. The development, acceptance and adoption of digital assets will require greater regulatory clarity and growth in usage and in the underlying blockchain technologies for various applications. In addition, the value of digital assets is subject to risks related to their usage. If growth in usage generally occurs in the near- or medium-term, then there is no assurance that such usage will continue to grow over the long term. A contraction in usage may result in increased volatility or declines in digital asset prices, which would materially adversely affect our results of operations.

***The prices of digital assets have experienced extreme volatility in recent periods and may continue to do so.***

The prices of digital assets have historically been highly volatile, based partly on market acceptance, adoption and future expectations, which may or may not be realized. A significant portion of demand for digital assets may be generated by speculators and investors seeking to profit from the short- or long-term holding of these assets. Speculation regarding future appreciation in the value of a digital asset may inflate and make the price of that digital asset more volatile.

Several factors may affect the prices of digital assets and could adversely affect our results of operations, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Global digital asset supply and demand, which can be influenced by increases or decreases in the usage of digital assets and the investment and trading activities of large investors that invest directly or indirectly in digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The financial strength of digital market participants generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The availability and cost of funding and capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The availability of banking and payment services to support digital asset-related projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The speed and rate at which a digital asset is able to gain acceptance and adoption as a medium of exchange, utility, store of value, consumptive asset, security instrument or other financial asset, if at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The development and availability of an active derivatives market for digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The fees associated with the processing of digital asset transactions and the speed at which such transactions are settled, including on the underlying digital asset networks and digital asset trading platforms;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The development and launch timeline of new digital asset networks and technologies and forthcoming upgrades designed to improve network scalability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in the software, software requirements or hardware requirements underlying a digital asset network, such as a fork. Forks in the future are likely to occur, and there is no assurance that such a fork would not result in a sustained decline in the market prices of digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The maintenance, troubleshooting and development of the open-source software protocol of digital assets and the digital asset networks underlying digital assets, including by miners, validators and developers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Ongoing technological viability and security of digital assets and their associated smart contracts, applications and networks, including vulnerabilities against hacks and scalability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Activities of stablecoin issuers, the ability of stablecoin issuers to substitute underlying assets to back the stablecoins or the decline in value of those underlying assets and future actions relating to the regulatory or accounting treatment of stablecoins;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changes in the rights, obligations, incentives or rewards for the various participants in a digital asset network, including in connection with block reward halving events, whereby the fixed reward for solving a new block is automatically halved after a certain number of blocks are solved. For digital assets that rely on miners or validators, sophisticated mining or validating groups may become unduly influential over time if system or bandwidth requirements become too high. Where a single personality or entity exerts an outsize influence, an adverse event impacting that individual or entity, such as an insolvency proceeding, could result in a reduction in the price of a digital asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Concentration of ownership in certain digital assets by an individual or small group of holders or those within one or a small number of jurisdictions. Large sales or distributions by such holders could have an adverse effect on the prices of such digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Digital asset trading platforms' deposit and withdrawal policies and practices, liquidity and increase or decrease in trading volume and interruptions in service from or failures of such trading platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Increased competition from other digital assets on networks that exhibit better speed, security, scalability or other characteristics, and from other forms of payment services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Actual or perceived manipulation of digital asset markets and digital asset trading platforms, many of which may be unregulated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Actual or perceived threats that digital assets and related activities, such as mining and validating, have adverse effects on the environment or are tied to illegal activities, or on the other hand, the correlation of the prices of certain digital assets to the price of Bitcoin in particular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Negative publicity relating to, and unpredictable media (including social media) coverage of, digital assets and the digital asset industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Listing or other business decisions by digital asset companies relating to specific digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The ability of digital assets and digital asset trading platforms to meet user and investor demands and changing consumer preferences;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Investors' and users' overall confidence in the digital asset ecosystem and the safety and reliability of digital asset trading platforms and digital wallets that hold digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Levels of, and investors' expectations with respect to, interest rates, rates of inflation of fiat currencies or digital assets and rates of return on digital asset trading platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Monetary policies of governments, trade restrictions, fiat currency devaluations and revaluations and regulatory measures, changes or enforcement actions that affect the use and value of digital assets, including with respect to the security status of digital assets generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Judicial pronouncements related to digital assets, including the treatment of digital assets in certain types of insolvencies;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Changing and uncertain regulatory perception and treatment of digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The taxation, and tax-related reporting, of transactions involving digital assets by the United States and other jurisdictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Global or regional political, economic or financial conditions, events and situations, including market conditions across the digital asset industry specifically.

Additionally, some purportedly decentralized digital assets may be more centralized than widely believed, or may become more centralized over time, increasing the risk that an adverse event impacting an individual personality or entity could result in reductions in the prices of digital assets. While digital assets networks may purport to be decentralized without the need for reliance on any single government or institution to create, transmit and determine value, in fact, a single entity may have the ability to exert centralized authority over a network.

Further, some digital assets may be more difficult to value than other investments because such assets may not have a liquid or transparent trading market. For example, some digital asset trading platforms have created their own digital assets and used them in opaque and potentially fraudulent manners to facilitate transactions and trading relationships. In certain circumstances, such digital assets are thinly traded, making it difficult to ascertain the true value of such assets. We may not be able to sell a digital asset promptly or at a reasonable time or price. Although there may be an institutional market for certain digital assets, it is not possible to predict exactly how the market for such assets will develop or whether it will continue to exist. A digital asset that was liquid at the time of purchase may subsequently become illiquid, and its value may decline as a result.

There is no assurance that any digital asset will maintain its long-term value in terms of purchasing power in the future, or that acceptance of digital asset payments by mainstream retail merchants and commercial businesses will continue to grow. Only a limited number of digital assets have sometimes been accepted as a means of payment for some goods and services, and use of digital assets by consumers to pay at retail and commercial outlets remains very limited. In part, this is because many digital assets face scaling obstacles that can lead to high fees or slow transaction settlement times and attempts to increase the volume of transactions may not be effective. Banks and other established financial institutions may refuse to process funds for transactions denominated in digital assets; process wire transfers to or from digital asset trading platforms, digital-asset-related companies or service providers; or maintain accounts for persons or entities transacting in digital assets. As a result, the prices of digital assets generally may be largely determined by speculators, miners and validators, thus contributing to price volatility that makes retailers less likely to accept digital assets as a form of payment. A lack of expansion by digital assets into retail and commercial markets, or a contraction of such limited use as has developed to date, may result in increased volatility or a reduction in the value of that digital asset or digital assets generally.

***Digital asset networks face significant scaling challenges and efforts to increase the volume and speed of transactions may not be successful.***

Many digital asset networks face significant scaling challenges due to the fact that public, permissionless blockchains generally face a tradeoff among decentralization, security and scalability. One means through which digital asset networks that utilize public, permissionless blockchains achieve security is through decentralization, meaning that no intermediary is responsible for securing and maintaining these systems. For example, many assert that a greater degree of decentralization of a public, permissionless blockchain generally means a given digital asset network is less susceptible to manipulation or capture. In practice, this typically means that each node on a given digital asset network is responsible for processing every transaction and maintaining a copy of the entire state of the network. As a result, a digital asset network that utilizes a public, permissionless blockchain may be limited in the number of transactions it can process by the computing capabilities of each single fully participating node. Many developers are actively researching and testing scalability solutions for public blockchains that do not necessarily result in lower levels of security or decentralization, such as off-chain payment channels and Layer 2 networks. Off-chain payment channels would allow parties to transact without requiring the full processing or validating power of a blockchain. Layer 2 networks can increase the scalability of a blockchain by allowing users to transact on a second blockchain deployed on top of a "Layer 1" network. There is no guarantee that the scalability solutions that are being researched and tested by developers will be successful.

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As corresponding increases in throughput lag behind growth in the use of digital asset networks, average transaction fees and settlement times may increase considerably. For example, the Bitcoin and Ethereum networks have been, at times, at capacity, which has led to increased transaction fees. Since January 1, 2022, average daily transaction fees on the Bitcoin network have ranged from $0.38 per transaction on September 8, 2024, to as high as $124.17 per transaction on April 20, 2024, and average daily transaction fees on the Ethereum network have ranged from $0.56 per transaction, on August 31, 2024, to as high as $200.27 per transaction, on May 1, 2022. As of December 31, 2024, average daily transaction fees on the Bitcoin network stood at $1.79 per transaction, and average daily transaction fees on the Ethereum network stood at $3.52 per transaction. Increased transaction fees and decreased settlement speeds could preclude certain uses for digital assets (e.g., micropayments) and could reduce demand for, and the prices of, digital assets, and could adversely affect our results of operations.

***Due to a lack of familiarity and some negative publicity associated with digital asset trading platforms, existing and potential customers, counterparties and regulators may lose confidence in the digital asset industry.***

Since the inception of the digital asset economy, numerous digital asset trading platforms have been sued, investigated or shut down due to fraud, manipulative practices, business failure and security breaches. In many of these instances, customers of these platforms were not compensated or made whole for their losses. Larger platforms are more appealing targets for hackers and malware and may also be more likely to be targets of regulatory enforcement actions. For example, in February 2021, Bitfinex settled a long-running legal dispute with the State of New York related to Bitfinex's alleged misuse of over $800 million of customer assets and, in October 2023, hackers were reported to have stolen $570 million from the BNB Smart Chain, a blockchain linked with Binance Holdings Ltd. ("Binance"), which operates one of the world's largest platforms. In February 2025, the digital asset trading platform Bybit reportedly lost approximately $1.5 billion in Ether through a hacker-induced transfer from its cold wallet to a wallet address said to be associated with the Lazarus Group (a hacker group believed to be run by the government of North Korea). Further, in 2022 and 2023, each of BlockFi, Celsius, Voyager, Three Arrows Capital, FTX and the Genesis Entities declared bankruptcy. In particular, in November 2022, it was revealed that FTX, at the time one of the world's largest and most popular digital asset trading platforms, had been misusing customer assets, resulting in a loss of confidence in participants of the digital asset economy and negative publicity surrounding digital assets more broadly. The U.S. Department of Justice subsequently brought criminal charges, including charges of fraud, violations of federal securities laws, money laundering and campaign finance offenses, against FTX's former CEO and others. In November 2023, FTX's former CEO was convicted of fraud and money laundering.

The SEC also brought charges against Genesis Capital and Gemini Trust Company, LLC ("Gemini") in January 2023 for their alleged unregistered offer and sale of securities to retail investors. In March 2024, Genesis Capital settled the charges, agreeing to a final judgment ordering it to pay a $21 million civil penalty. In October 2023, the New York Attorney General ("NYAG") brought charges against Gemini, the Genesis Entities, Genesis Capital's former CEO, DCG and DCG's CEO alleging violations of the New York Penal Law, New York General Business Law and New York Executive Law. In February 2024, the NYAG amended its complaint to expand the charges against Gemini, the Genesis Entities, Genesis Capital's former CEO, DCG and DCG's CEO to include harm to additional investors. Also in February 2024, the Genesis Entities entered into a settlement agreement with the NYAG to resolve the allegations against the Genesis Entities, which settlement was approved by the Bankruptcy Court of the Southern District of New York in May 2024. In May 2025, the Genesis Litigation Oversight Committee ("GLOC"), on behalf of the post-reorganization Genesis Entities, filed a lawsuit in the Delaware Chancery Court against Genesis Capital's former CEO, DCG, DCG's CEO and other parties seeking to recover losses in kind of approximately $2.2 billion in crypto assets. While we are not named as a party to this lawsuit, the Genesis Entities are former affiliates of ours due to the fact that the Genesis Entities were wholly owned by DCG prior to the Genesis Entities' bankruptcy, and there can be no assurance that this lawsuit will not have an adverse effect on us. In May 2025, the GLOC also filed a lawsuit in the U.S. Bankruptcy Court for the Southern District of New York against DCG, DCG's CEO and affiliated parties, including Grayscale, seeking to recover losses in kind of approximately $1.2 billion in crypto assets and U.S. Dollars, of which Grayscale's alleged liability is 105 BTC and 37,647.06 ETC (valued at approximately $11.9 million as of June 30, 2025).

Further, in June 2023, the SEC initiated lawsuits against Coinbase, Inc. ("Coinbase") and Binance alleging, among other things, that such firms were operating as unregistered securities exchanges in the United States and

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identifying a number of digital assets that the SEC alleges to be unregistered securities. In addition, in November 2023, the SEC filed a complaint against Payward, Inc. and Payward Ventures, Inc. (together known as "Kraken") and brought similar charges, including an allegation that Kraken operated as an unregistered securities exchange, brokerage and clearing agency. In November 2023, Binance pleaded guilty in connection with the Justice Department's investigations into violations relating to the Bank Secrecy Act of 1970, as amended ("BSA"), failure to register as a money transmitting business and the International Emergency Economic Powers Act, and the founder of Binance pleaded guilty to failing to maintain an effective AML program in violation of the BSA. As part of the settlement, Binance separately reached resolutions with the CFTC, Financial Crimes Enforcement Network ("FinCEN") and the Treasury Department's Office of Foreign Assets Control ("OFAC"). In February 2025, Coinbase and the SEC entered into a court-approved joint stipulation to dismiss the SEC's lawsuit with prejudice. In March 2025, Kraken and the SEC jointly dismissed the SEC's lawsuit with prejudice. In May 2024, Binance and the SEC jointly dismissed the SEC's lawsuit with prejudice. Several other digital assets market participants have also announced that the SEC informed them that the SEC was terminating its investigation or enforcement action into their firm. Further, the Justice Department in April 2025 issued a memorandum indicating that it will prioritize cases related to digital assets' use in crimes of fraud, terrorism, drugs and human trafficking, organized crime, hacking and gang financing, and that other sorts of cases related to digital assets will be deprioritized. The final outcome of these and other lawsuits (to the extent not yet dismissed), their effect on the broader digital asset ecosystem and the reputation impact on industry participants, remain uncertain. Such litigation has led, and this or other litigation in the future may lead, to further volatility in digital asset prices.

In addition, there have been reports that a significant amount of trading volume on digital asset trading platforms is fabricated and false in nature. Such reports may indicate that the market for digital asset trading platform activities is significantly smaller than otherwise understood.

Negative perception, a lack of stability and standardized regulation in the digital asset economy, and the closure or temporary shutdown of digital asset trading platforms due to fraud, business failure, hackers or malware, or government-mandated regulation, and associated losses suffered by customers may reduce confidence in the digital asset economy and result in greater volatility of the prices of digital assets, including significant depreciation in value. Any of these events could adversely affect our reputation, business and financial condition.

***Many digital asset transactions are irrevocable and stolen or incorrectly transferred digital assets may be irretrievable. As a result, any incorrectly executed digital asset transaction could adversely affect our results of operations.***

Digital asset transactions recorded on a blockchain ledger are typically not reversible without the consent and active participation of the recipient of the transaction. Once a transaction has been verified and recorded in a block that has been added to the blockchain, an incorrect transfer or theft of a digital asset generally will not be reversible. We may not be capable of obtaining compensation for any such transfer or theft. Although transfers of digital assets custodied by a Custodian on behalf of our investment products will regularly be made to or from our custody accounts, it is possible that, through computer or human error, or through theft or criminal action, such digital assets could be transferred from our custody accounts in incorrect amounts or to unauthorized third parties, or to uncontrolled accounts.

Such events have occurred in connection with digital assets in the past. To the extent we are unable to seek a corrective transaction with the recipient of an incorrect transfer of digital assets or identify the third party which has received digital assets through theft, we will be unable to revert or otherwise recover such digital assets. We will also be unable to convert or recover any digital assets transferred to uncontrolled accounts. Such loss could materially adversely affect our results of operations.

***The U.S. federal income tax treatment of transactions in digital assets is unclear.***

Due to the new and evolving nature of digital assets and the absence of comprehensive guidance with respect to digital assets, many significant aspects of the U.S. federal income tax treatment of digital assets are uncertain. Our operations and dealings, in or in connection with digital assets, as well as transactions in digital assets generally, could be subject to adverse tax consequences in the United States, including as a result of development of the legal regimes

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surrounding digital assets, and the prices of digital assets, as well as our results of operations, could be adversely affected thereby.

Many significant aspects of the U.S. federal income tax treatment of digital assets (including with respect to the amount, timing and character of income recognition) are uncertain. In 2014, the U.S. Internal Revenue Service (the "IRS") released a notice (the "Notice") discussing certain aspects of certain digital assets for U.S. federal income tax purposes and, in particular, stating that such digital assets are "property"; are not "currency," for purposes of the rules relating to foreign currency gain or loss; and may be held as a capital asset. In 2019, the IRS released a revenue ruling and a set of "Frequently Asked Questions" (the "Ruling & FAQs") that provide some additional guidance, including guidance to the effect that, under certain circumstances, hard forks of digital assets are taxable events giving rise to ordinary income and guidance with respect to the determination of the tax basis of digital assets. The Notice and the Ruling & FAQs, however, do not address other significant aspects of the U.S. federal income tax treatment of digital assets. We do not intend to request a ruling from the IRS on these issues, and we will take positions on these and other U.S. federal income tax issues relating to digital assets that we believe to be reasonable. There can be no assurance that the IRS will agree with the positions we take, and it is possible that the IRS will successfully challenge our positions.

For example, certain of our investment products are intended to be grantor trusts for U.S. federal income tax purposes, but there is limited guidance regarding the treatment of investment products holding digital assets. In addition, certain of our investment products may be required to make determinations and take positions regarding uncertain tax consequences arising from digital assets they hold, including with respect to U.S. withholding taxes in respect of income from a fork, airdrop, or similar occurrence. If the IRS were to successfully challenge tax positions taken by any of our investment products, it could give rise to materially adverse tax consequences to both the investment product and its investors. Moreover, regulations, rulings or other guidance regarding digital assets could give rise to adverse tax consequences to our investment products by imposing additional tax on them or their investors or by requiring them to comply with burdensome reporting or withholding requirements.

There can be no assurance that the IRS will not alter its position with respect to digital assets in the future or that a court would uphold the treatment set forth in the Notice and the Ruling & FAQs. It is also unclear what additional guidance on the treatment of digital assets for U.S. federal income tax purposes may be issued in the future. Any such alteration of the current IRS positions or additional guidance could result in adverse tax consequences for us and investors in our investment products and have an adverse effect on the value of digital assets. Because of the evolving nature of digital assets, it is not possible to predict potential future developments that may arise. Such developments may increase the uncertainty with respect to the treatment of digital assets for U.S. federal income tax purposes. For example, the Notice addresses only digital assets that are "convertible virtual currency" (that is, digital assets that have an equivalent value in fiat currency or act as substitutes for fiat currency), and it is conceivable that certain types of digital assets for which we offer investment products are not within the scope of the Notice.

On November 15, 2021, President Biden signed into law the Infrastructure Investment and Jobs Act (the "IIJA"). The IIJA implements a set of comprehensive tax information reporting rules that will apply to persons, including digital asset trading platforms and custodians, that regularly effect transfers of digital assets on behalf of other persons. In particular, these rules will require digital asset trading platforms and custodians to report certain digital asset transactions (including sales, exchanges and other transfers) effected on behalf of other persons on an annual return, in a manner similar to the current reporting rules for brokers that effect stock and other securities transactions on behalf of customers. In addition, the IIJA extends the reporting requirements for businesses that receive more than $10,000 in cash in a transaction (or related transactions) to transactions involving the receipt of digital assets with a fair market value of more than $10,000.

In July of 2024, the IRS and the U.S. Department of the Treasury released final regulations to implement certain of these reporting rules (the "July final regulations"). The July final regulations' definition of the term "broker" is broad and, in a number of respects, is unclear in scope, but generally requires custodial brokers and brokers acting as principals to perform information reporting and backup withholding functions. Under the July final regulations and a notice released contemporaneously by the IRS and the U.S. Department of the Treasury, such reporting of cost basis information and backup withholding generally will apply in respect of transactions occurring on or after January 1, 2025, but certain transitional relief may be available for transactions occurring prior to January 1, 2026. The July final

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

regulations do not address all aspects of the IIJA information reporting regime and their application is uncertain in a number of respects, including with respect to the collection and reporting of cost basis information for digital assets and the scope of transactions subject to reporting. In December of 2024, the IRS and the U.S. Department of the Treasury issued separate final regulations describing information reporting rules for noncustodial industry participants (the "December final regulations"), including the requirement to file information returns and furnish payee statements reporting gross proceeds on dispositions of digital assets effected for customers in certain sale or exchange transactions. The December final regulations were subsequently repealed under the Congressional Review Act on April 10, 2025, after President Trump signed into law a congressional joint resolution of disapproval providing that the December final regulations shall have no force or effect.

The effects of the IIJA reporting regime and its application to us may depend in significant part on further regulatory or other guidance from the IRS and could create significant compliance burdens and uncertainties in the digital asset market, and could affect the price of digital assets, which could have an adverse effect on our business.

***The state, local and non-U.S. tax treatment of digital assets is unclear.***

The taxing authorities of certain states have announced that they will follow the Notice with respect to the treatment of digital assets for state income tax purposes and/or have issued guidance exempting the purchase and/or sale of digital assets for fiat currency from state sales tax. It is unclear what further guidance on the treatment of digital assets for state tax purposes may be issued in the future. Any future guidance on the treatment of digital assets for state or local tax purposes could result in adverse tax consequences to us and investors in our investment products and adversely affect the prices of digital assets.

The treatment of digital assets for tax purposes by non-U.S. jurisdictions may differ from the treatment of digital assets for U.S. federal, state or local tax purposes. It is possible, for example, that a non-U.S. jurisdiction would impose sales tax or value-added tax on purchases and sales of digital assets for fiat assets. For instance, if a foreign jurisdiction with a significant share of the market of Bitcoin users imposes onerous tax burdens on digital asset users, or imposes sales or value-added tax on purchases and sales of digital assets for fiat assets, then such actions could result in decreased demand for digital assets in such jurisdiction, which could adversely affect the prices of digital assets.

You are urged to consult your own tax advisors regarding the tax treatment of digital assets and the consequences of investing in us, given the nature of our business.

***Regulatory changes or actions by the U.S. Congress or U.S. federal or state agencies may lead to restrictions in the use of digital assets, mining and validating activity or the operation of digital asset networks or digital asset markets in a manner that adversely affects the prices of digital assets and our results of operations.***

As digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including FinCEN, OFAC, SEC, CFTC, IRS, Federal Deposit Insurance Corporation ("FDIC"), Financial Industry Regulatory Authority ("FINRA"), Consumer Financial Protection Bureau ("CFPB"), Department of Justice ("DOJ"), Department of Homeland Security ("DHS"), Federal Bureau of Investigation ("FBI"), Office of the Comptroller of the Currency, Federal Reserve ("OCC") and state financial institution and securities regulators) have been examining the operations of digital asset networks, digital asset users and digital asset markets, with particular focus on the extent to which digital assets can be used to launder the proceeds of illegal activities, evade sanctions, or fund criminal or terrorist enterprises and the safety and soundness of trading platforms and other service providers that hold or custody digital assets for users. Many of these state and federal agencies have issued consumer advisories regarding the risks posed by digital assets to investors. Ongoing and future regulatory actions with respect to digital assets may alter, perhaps to a materially adverse extent, the nature of an investment in our investment products or our ability to continue to operate. Moreover, the failure of FTX in November 2022 and the resulting market turmoil substantially increased regulatory scrutiny in the United States and globally and led to criminal investigations, SEC enforcement actions and other regulatory activity across the digital asset ecosystem.

In August 2021, the former chair of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected, and that activities on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues related to protecting investors and consumers,

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guarding against illicit activity and ensuring financial stability. The former chair expressed a need for the SEC to have additional authorities to prevent transactions, products and platforms from "falling between regulatory cracks," as well as for more resources to protect investors in "this growing and volatile sector." The former chair called for federal legislation centering on digital asset trading, lending and DeFi platforms, seeking "additional plenary authority" to write rules for digital asset trading and lending. The SEC under the current administration, however, is taking a different approach to digital assets.

There have been several bills introduced in Congress that propose to establish additional regulation and oversight of the digital asset markets. Certain of these bills passed out of relevant committees and were passed in the House of Representatives in the last Congress, though not the Senate. Some of these bills have since been reintroduced with changes, and continue to be contemplated in the relevant committees, as well as the full House of Representatives and Senate. For example, in July 2025, the GENIUS Act was signed into law and the House of Representatives passed the CLARITY Act in an effort to pass laws relating to digital asset market structure. It is difficult to predict whether, or when, any of these developments will lead to Congress granting additional authorities to the SEC or other regulators, what the nature of such additional authorities might be, how additional legislation and/or regulatory oversight might impact the ability of digital asset markets to function or how any new regulations or changes to existing regulations might impact the value of digital assets generally and those held by us specifically. The consequences of increased federal regulation of digital assets and digital asset activities could have a material adverse effect on our business and the market price of our Class A common stock.

Furthermore, changes in U.S. political leadership and economic policies may create uncertainty that materially affects the price of digital assets. For example, on March 6, 2025, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve and a United States Digital Asset Stockpile. Pursuant to this Executive Order, the Strategic Bitcoin Reserve will be capitalized with Bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings, and the Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional Bitcoin, provided that those strategies impose no incremental costs on American taxpayers. Conversely, the Digital Asset Stockpile will consist of all digital assets other than Bitcoin owned by the Department of Treasury that were forfeited in criminal or civil asset forfeiture proceedings, but the U.S. government will not acquire additional assets for the U.S. Digital Asset Stockpile beyond those obtained through such proceedings. The anticipation of a U.S. government-funded strategic cryptocurrency reserve had motivated large-scale purchases of various digital assets in the expectation of the U.S. government acquiring those digital assets to fund such reserve, and the market price of some digital assets decreased significantly as a result of the ultimate content of the Executive Order. Any similar action or omission by the U.S. federal administration or other government authorities may negatively and significantly impact the price of digital assets.

In addition, law enforcement agencies have often relied on the transparency of blockchains to facilitate investigations. However, certain privacy-enhancing features have been, or are expected to be, introduced to a number of digital asset networks. If the digital asset networks were to adopt any of these features, then these features may provide law enforcement agencies with less visibility into transaction-level data. Europol, the E.U.'s law enforcement agency, released a report in October 2017 noting the increased use of privacy-enhancing digital assets like Zcash and Monero in criminal activity. In August 2022, OFAC banned all transactions by U.S. persons or in the United States involving Tornado Cash, a digital asset protocol designed to obfuscate blockchain transactions, by adding Tornado Cash and certain Ethereum wallet addresses associated with the protocol to its Specially Designated Nationals and Blocked Persons List, though it has since removed the Tornado Cash smart contracts from this list. In October 2023, FinCEN issued a notice of proposed rulemaking that identified convertible virtual currency ("CVC") mixing as a class of transactions of primary money laundering concern and proposed requiring covered financial institutions to implement certain recordkeeping and reporting requirements on transactions that covered financial institutions know, suspect or have reason to suspect involve CVC mixing within or involving jurisdictions outside the United States. In April 2024, the DOJ arrested and charged the developers of the Samourai Wallet mixing service with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. In May 2024, a co-founder of Tornado Cash was sentenced to more than five years imprisonment in the Netherlands for developing Tornado Cash on the basis that he had helped launder more than $2 billion worth of digital assets through Tornado Cash. In August 2025, a co-founder of Tornado Cash was convicted of conspiracy to operate an unlicensed money transmitting business, but a mistrial was declared with respect to charges of conspiracy to commit money laundering

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

and conspiracy to violate U.S. sanctions. Additional regulatory action with respect to privacy-enhancing digital assets and protocols is possible in the future.

It is difficult to predict whether, or when, the U.S. Congress will grant additional authorities to the SEC or other regulators, what the nature of such additional authorities might be, how additional legislation or regulatory oversight might impact the ability of digital asset markets to function or how any new regulations or changes to existing regulations might impact the prices of digital assets. The consequences of increased regulation of digital assets, participants in the digital asset industry and digital asset activities could have a material adverse effect on our results of operations.

***Regulatory changes or other events in foreign jurisdictions may lead to restrictions in the use of digital assets, mining and validating activity or the operation of digital asset networks or digital asset markets in a manner that adversely affects the prices of digital assets and our results of operations.***

Various foreign jurisdictions have adopted, and may continue to adopt, laws, regulations or directives that affect digital asset networks, digital asset markets and their users, particularly digital asset trading platforms and service providers that fall within such jurisdictions' regulatory scope. For example, if foreign jurisdictions in addition to China were to ban or otherwise restrict mining and validating activity, including by regulating or limiting manufacturers' ability to produce or sell semiconductors or hard drives in connection with mining and validating, then this would have a material adverse effect on digital asset networks and digital asset markets, and as a result, impact the prices of digital assets and our results of operations.

A number of foreign jurisdictions have recently taken regulatory action aimed at digital asset activities. China has made transacting in cryptocurrencies illegal for Chinese citizens in mainland China, and additional restrictions may follow. Both China and South Korea have banned initial coin offerings entirely, and regulators in other jurisdictions, including Canada, Singapore and Hong Kong, have opined that initial coin offerings may constitute securities offerings subject to local securities regulations. The U.K.'s Financial Conduct Authority ("FCA") published final rules in October 2020 banning the sale of derivatives and exchange-traded notes that reference certain types of digital assets, contending that they are "ill-suited" to retail investors, citing extreme volatility, valuation challenges and association with financial crime. A new law, the Financial Services and Markets Act 2023 ("FSMA"), received royal assent in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions, markets and assets. In addition, the Parliament of the European Union approved the text of the Markets in Crypto Assets Regulation ("MiCA") in April 2023, establishing a regulatory framework for digital asset services across the European Union. Certain parts of MiCA became effective as of June 2024 and the remainder became effective as of December 2024. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes various obligations on digital asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection, prevention of market abuse and upholding the integrity of digital asset markets.

Foreign laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance of one or more digital assets by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the digital asset economy in the United States and globally, or otherwise negatively affect the value of digital assets. The effect of any future regulatory changes or other events in foreign jurisdictions on the prices of digital assets is impossible to predict, and such changes or events could be substantial and adverse to our results of operations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Due to the largely unregulated nature and lack of transparency surrounding the operations of digital asset trading platforms, they may experience fraud, market manipulation, business failures, security failures or operational problems, which may adversely affect the prices of digital assets and, consequently, our results of operations.***

Digital asset trading platforms are relatively new and, in many ways, are not subject to, or may not comply with, regulation in relevant jurisdictions in a manner similar to other regulated trading platforms, such as national securities exchanges or designated contract markets. While many prominent digital asset trading platforms provide the public with significant information regarding their on-chain activities, ownership structure, management teams, corporate practices, cybersecurity practices and regulatory compliance, many other digital asset trading platforms do not provide this information. Furthermore, while some digital asset trading platforms are and may continue to be subject to federal and state licensing requirements in the United States, digital asset trading platforms do not currently appear to be subject to regulation in a similar manner as other regulated trading platforms, such as national securities exchanges or designated contract markets. As a result, the marketplace may lose confidence in such digital asset trading platforms, including prominent trading platforms that handle a significant volume of digital asset trading.

Many digital asset trading platforms, both in the United States and abroad, are unlicensed, not subject to, or not in compliance with, regulation in relevant jurisdictions, or operate without extensive supervision by governmental authorities, and therefore may be more susceptible to fraudulent or manipulative acts and practices. In particular, those located outside the United States may be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions and may take the position that they are not subject to laws and regulations that would apply to a national securities exchange or designated contract market in the United States, or may, as a practical matter, be beyond the ambit of U.S. regulators. As a result, trading activity on, or reported by, these digital asset trading platforms is generally significantly less regulated than trading activity on or reported by regulated U.S. securities and commodities markets, and may reflect behavior that would be prohibited in regulated U.S. trading venues. For example, in 2022 one report claimed that trading volumes on digital asset trading platforms were inflated by over 70% due to false or non-economic trades, with specific focus on unlicensed digital asset trading platforms located outside of the United States. Such reports may indicate that the digital asset trading platform market is significantly smaller than expected and that the United States makes up a significantly larger percentage of the digital asset trading platform market than is commonly understood, or that a much larger portion of digital asset market activity takes place on DeFi platforms than is commonly understood. Nonetheless, any actual or perceived false trading in the digital asset trading platform market, and any other fraudulent or manipulative acts and practices, could adversely affect the prices of digital assets or negatively affect the market perception of digital assets, which could in turn adversely impact our results of operations.

The SEC has also identified possible sources of fraud and manipulation in the digital asset markets generally, including, among others (1) "wash-trading"; (2) persons with a dominant position in a digital asset manipulating pricing in such digital asset; (3) hacking of the underlying digital asset network and trading platforms; (4) malicious control of the underlying digital asset network; (5) trading based on material, non-public information (for example, plans of market participants to significantly increase or decrease their holdings in a digital asset, new sources of demand for a digital asset) or based on the dissemination of false and misleading information; (6) manipulative activity involving purported "stablecoins"; and (7) fraud and manipulation on digital asset markets. The use or presence of such acts and practices in the digital asset markets could, for example, falsely inflate the volume of a digital asset present in the digital asset markets or cause distortions in the price of such digital asset, among other things that could adversely affect any digital assets for which we offer investment products. Moreover, tools to detect and deter fraudulent or manipulative trading activities, such as market manipulation, front-running of trades, and wash-trading, may not be available to or employed by digital asset markets, or may not exist at all. Many digital asset markets also lack certain safeguards put in place by exchanges for more traditional assets to enhance the stability of trading on the exchanges and prevent "flash crashes," such as limit-down circuit breakers. As a result, the prices of digital assets on digital asset markets may be subject to larger and/or more frequent sudden declines than assets traded on more traditional exchanges.

In addition, over the past several years, some digital asset platforms have been closed, been subject to criminal and civil litigation and have entered into bankruptcy proceedings due to fraud and manipulative activity, business failure and/or security breaches. In many of these instances, the customers of such digital asset trading platforms were

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

not compensated or made whole for the partial or complete losses of their account balances in such digital asset trading platforms. In some instances, customers are made whole only in dollar terms as of the digital asset trading platform's date of failure, rather than on a digital asset basis, meaning customers may still lose out on any subsequent price increase in digital assets.

While smaller digital asset trading platforms are less likely to have the infrastructure and capitalization that make larger digital asset trading platforms more stable, larger digital asset trading platforms are more likely to be appealing targets for hackers and malware and their shortcomings or ultimate failures are more likely to have contagion effects on the digital asset ecosystem, including on the price of Bitcoin and Ether, and therefore may be more likely to be targets of regulatory enforcement action. For more information on these events, see "—Due to a lack of familiarity and some negative publicity associated with digital asset trading platforms, existing and potential customers, counterparties and regulators may lose confidence in the digital asset industry."

Negative perception, a lack of stability and standardized regulation in the digital asset markets and/or the closure or temporary shutdown of digital asset trading platforms due to fraud, business failure, security breaches or government mandated regulation, and associated losses by customers, may reduce confidence in digital asset networks and result in greater volatility in the prices of digital assets. Furthermore, the closure or temporary shutdown of a digital asset trading platform used in calculating the index price of one of our investment products may result in a loss of confidence in such investment product, negatively affecting our AUM and reducing our revenues.

***Political or economic crises may motivate large-scale sales of digital assets, which would result in a reduction in values and materially adversely affect our results of operations.***

Certain digital assets, as alternatives to fiat currencies that are backed by central governments, are subject to supply and demand forces based upon the desirability of an alternative, decentralized means of buying and selling goods and services, and it is unclear how such supply and demand will be impacted by geopolitical events. For example, political or economic crises could motivate large-scale acquisitions or sales of digital assets either globally, regionally or locally. Large-scale sales of certain digital assets would result in a reduction in their value and could materially adversely affect our results of operations.

***The value of digital assets may be subject to momentum pricing risk.***

Momentum pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for anticipated future appreciation in value. Digital asset market prices are determined primarily using data from various digital asset trading platforms, over-the-counter markets and derivative platforms. Momentum pricing may have resulted, and may continue to result, in speculation regarding future appreciation in the value of digital assets, inflating and making their market prices more volatile, and such effects may be material and adverse. As a result, digital assets may be more likely to fluctuate in value due to changing investor confidence in future appreciation (or depreciation) in their market prices, which could materially adversely affect our results of operations.

***Digital asset networks, digital assets and the digital asset trading platforms on which these assets are traded are dependent on internet and other blockchain infrastructure and susceptible to system failures, security risks and rapid technological change.***

The success of digital asset networks and platforms will depend on the continued development of a stable infrastructure, with the necessary speed, data capacity and security and the timely development of complementary products such as high-speed modems for providing reliable internet access and services. Digital assets have experienced, and are expected to continue to experience, significant growth in the number of users and amount of content. Blockchains will continue to be increasingly interconnected with other blockchains and real-world applications. As services and applications continue to be built on top of blockchains, there will be increased reliance on third-party infrastructure providers, including in connection with cross-chain bridges and messaging, liquidity providers, wallets, data feeds and oracles. Reliance on any of these third parties introduces additional risks and points of failure. There is no assurance that the relevant digital asset infrastructure will continue to be able to support the demands placed on it by continued growth of digital asset networks or that the performance or reliability of the

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

technology will not be adversely affected by such continued growth. There is also no assurance that the infrastructure or complementary products or services necessary to make digital assets a viable product for their intended use will be developed in a timely manner, or that such development will not result in the requirement of incurring substantial costs to adapt to changing technologies. The failure of these technologies or platforms or the development of these technologies or platforms could materially adversely affect our results of operations. Any number of technical changes, software upgrades, soft or hard forks, cybersecurity incidents or other changes to the underlying digital asset network may occur from time to time, causing incompatibility, technical issues, disruptions or security weaknesses to our systems.

If we are unable to identify, troubleshoot and resolve any issues successfully, then we may no longer be able to support certain digital assets, our digital assets or those of our investment products may be frozen or lost and our systems and technical infrastructure may be affected, all of which could adversely impact the success of our business, financial condition and results of operations. Digital assets are created, issued, transmitted and stored according to protocols run by computers in digital asset networks. It is possible these protocols have undiscovered flaws or could be subject to network scale attacks which could result in losses to us. Advancements in quantum computing could impact the cryptographic rules of protocols that support certain of our digital assets, which could adversely affect our results of operations.

***If the digital asset reward or transaction fees for recording transactions on a digital asset network are not sufficiently high to incentivize miners or validators, or certain jurisdictions continue to limit mining or validating activities, then miners or validators may cease expanding processing or validating power or demand high transaction fees, which could negatively impact the value of the digital asset.***

If the digital asset rewards for mining or validating blocks or the transaction fees for recording transactions on a digital asset network are not sufficiently high to incentivize miners or validators, or certain jurisdictions continue to limit mining or validating activities, then miners or validators may cease expending processing or validating power to mine or validate blocks and confirmations of transactions on the digital asset's blockchain could be slowed. The realization of one or more of the following risks, among others, could materially adversely affect our results of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If the profit margins of digital asset mining and validating operations are not sufficiently high, including due to an increase in electricity costs or the reduction in rewards, including block reward halving events, then digital asset miners and validators are more likely to immediately sell tokens earned by mining or validating, resulting in an increase in liquid supply of that digital asset, which would generally tend to reduce that digital asset's market price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•A reduction in digital assets staked by validators or the processing power expended by miners on a digital asset network could increase the likelihood of a malicious actor disrupting or obtaining control of the network. For more information, see "—If a malicious actor or botnet obtains control of more than 50% of the processing or validating power on a digital asset network, or otherwise obtains control over a digital asset network through its influence over core developers or otherwise, then such actor or botnet could manipulate the blockchain of such digital asset."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Miners and validators have historically accepted relatively low transaction confirmation fees on most digital asset networks due to income skewed toward the block reward. If miners or validators demand higher transaction fees for recording transactions in the blockchain or a software upgrade automatically charges fees for all transactions on a digital asset network, then the cost of using such digital asset may increase and the marketplace may be reluctant to accept such digital asset as a means of payment. Alternatively, miners and validators could collude in an anti-competitive manner to reject low transaction fees on a digital asset network and force users to pay higher fees, thus reducing the attractiveness of the digital asset network. Higher transaction confirmation fees resulting from collusion or other factors may reduce the attractiveness of the digital asset network, the value of the digital asset and materially adversely affect the value of our digital assets or those of our investment products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•To the extent that any miners or validators cease to record transactions that do not include the payment of a transaction fee in mined or validated blocks or do not record a transaction because the transaction fee is

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

too low, such transactions will not be recorded on the blockchain of a digital asset until a block is mined or validated by a miner or validator who does not require the payment of transaction fees or is willing to accept a lower fee. Any widespread delays in the recording of transactions could result in a loss of confidence in a digital asset network.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Miners and validators may be able to prioritize certain transactions in return for increased transaction fees, an incentive system known as Maximal Extractable Value ("MEV"), which may lead to an increase in transaction fees on a digital asset network, thereby diminishing its use. For more information on the risks related to MEV, see "—If a malicious actor or botnet obtains control of more than 50% of the processing or validating power on a digital asset network, or otherwise obtains control over a digital asset network through its influence over core developers or otherwise, then such actor or botnet could manipulate the blockchain of such digital asset."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Digital asset mining operations can consume significant amounts of electricity, which may have a negative environmental impact and give rise to public opinion against allowing, or government regulations restricting, the use of electricity for mining operations. Additionally, miners may be forced to cease operations during an electricity shortage or power outage.

***From time to time, there may be technical issues in connection with changes or upgrades to underlying digital asset networks or protocols of digital assets for which we offer investment products, and more broadly, such changes or upgrades may be delayed or unsuccessful, any of which could materially adversely affect our business, financial condition and results of operations.***

Rising adoption of digital asset networks leads to network congestion, as space on decentralized ledgers is inherently scarce. From a design standpoint, striking a balance between security, decentralization and scalability (or transactional throughput) is a subject of great debate among innovators and has led to the creation of a variety of networks that make different trade-offs to achieve different outcomes. If network congestion rises to the point where transaction fees make it prohibitively expensive for average users to operate on the network, then those users may stop using the network, and application developers may seek to build on other networks where users can afford to transact.

Any number of anticipated or unforeseen technical changes or software upgrades, soft or hard forks, cybersecurity incidents or other changes to the underlying digital asset network or protocols of digital assets for which we offer investment products may cause incompatibility, technical issues, disruptions or security weaknesses. If the parties responsible for maintaining such networks or protocols are unable to identify, troubleshoot and resolve any such issues successfully, then we may no longer be able to support certain digital assets, or the digital assets custodied by a Custodian on behalf of our investment products may be frozen or lost, all of which could adversely affect the success of our business, financial condition and results of operations.

***Changes in the governance of a digital asset network may not receive sufficient support from users and miners or validators, which may negatively affect that digital asset network's ability to grow and respond to challenges.***

The governance of decentralized networks, such as the Bitcoin and Ethereum networks, is by voluntary consensus and open competition. As a result, there may be a lack of consensus or clarity on the governance of any particular decentralized digital asset network, which may stymie such network's utility and ability to grow and face challenges. The foregoing notwithstanding, the protocols for some decentralized networks, such as the Bitcoin and Ethereum networks, are informally managed by a group of core developers that propose amendments to the relevant network's source code. Core developers' roles evolve over time, largely based on self-determined participation. If a significant majority of users and miners or validators adopt amendments to a decentralized network based on the proposals of such core developers, then such network will be subject to new protocols that may adversely affect the value of the relevant digital asset.

As a result of the foregoing, it may be difficult to find solutions or marshal sufficient effort to overcome any future problems, especially long-term problems, on digital asset networks, which could negatively affect our results of operations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Digital asset networks are developed by a diverse set of contributors, and the perception that certain high-profile contributors will no longer contribute to the network could have an adverse effect on the market price of the related digital asset.***

Digital asset networks and related protocols are often developed by a diverse set of contributors, but are also often developed by identifiable and high-profile contributors. The perception that certain high-profile contributors may no longer contribute to the applicable digital asset network or protocol may have an adverse effect on the market price of any related digital assets. For example, in June 2017, an unfounded rumor circulated that Ethereum protocol developer Vitalik Buterin had died. Following the rumor, the price of Ether decreased approximately 20% before recovering after Buterin himself dispelled the rumor. Some have speculated that the rumor led to the decrease in the price of Ether.

In the event a high-profile contributor to the Bitcoin, Ethereum or other network, or closely associated supporting infrastructure and applications, is perceived as no longer contributing to such networks due to death, retirement, withdrawal, incapacity or otherwise, whether or not such perception is valid, it could adversely affect the prices of digital assets and our results of operations.

***A fork or airdrop could materially adversely affect our results of operations.***

Many public digital asset networks operate using open-source protocols, meaning that any user can download the software, modify it and then propose that the users and miners or validators of such network adopt the modification. The development team for a network might propose and implement amendments to a network's source code through software upgrades altering the original protocol, including fundamental ideas such as the irreversibility of transactions and limitations on the validation of blockchain software distributed ledgers. Such changes to original protocols and software could materially adversely affect our results of operations.

When a modification is introduced and a substantial majority of users and miners or validators consent to the modification, the change is implemented and the network remains uninterrupted. However, if less than a substantial majority of users and miners or validators consent to the proposed modification, and the modification is not compatible with the software prior to its modification, then the consequence would be a hard fork of the network, with one group running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two versions of the network running in parallel, yet lacking interchangeability. For example, Bitcoin Cash is the result of a hard fork of Bitcoin. Some users of the Bitcoin network may harbor ill will toward the Bitcoin Cash network, and vice versa. These users may attempt to negatively impact the use or adoption of the Bitcoin Cash or Bitcoin network. A fork may also occur as a result of an unintentional or unanticipated software flaw in the various versions of otherwise compatible software that users run. Such a fork could lead to users and miners abandoning the digital asset with the flawed software. It is possible, however, that a substantial number of users and miners could adopt an incompatible version of the digital asset while resisting community-led efforts to merge the two chains. This could result in a permanent fork.

Forks may also occur as a network community's response to a significant cybersecurity breach. For example, in July 2016, Ethereum "forked" into Ethereum and a new network, Ethereum Classic, as a result of the Ethereum network community's response to a significant cybersecurity breach. In June 2016, an anonymous hacker exploited a smart contract running on the Ethereum network to syphon approximately $60 million of Ether held by The DAO, a distributed autonomous organization, into a segregated account. In response to the exploit, most participants in the Ethereum community elected to adopt a "fork" that effectively reversed the exploit. However, a minority of users continued to develop the original blockchain, referred to as "Ethereum Classic" with the digital asset on that blockchain now referred to as ETC. ETC now trades on several digital asset trading platforms.

In addition, many developers have previously initiated hard forks in the Bitcoin blockchain to launch new digital assets, such as Bitcoin Cash (as mentioned above), Bitcoin Gold, Bitcoin Silver and Bitcoin Diamond. To the extent such digital assets compete with a digital asset for which we offer an investment product, such competition could impact demand for such digital asset and adversely impact our results of operations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Furthermore, a hard fork can lead to new cybersecurity concerns. For example, when the Ethereum and Ethereum Classic networks split in July 2016, replay attacks, in which transactions from one network were rebroadcast to nefarious effect on the other network, plagued Ethereum trading platforms through at least October 2016. An Ethereum Classic trading platform announced in July 2016 that it had lost 40,000 ETC, worth about $100,000 at the time, as a result of replay attacks. Similar replay attack concerns occurred in connection with the Bitcoin Cash hard fork that created the Bitcoin Satoshi Vision network in November 2018. Another possible result of a hard fork is an inherent decrease in the level of security due to significant amounts of processing or validating power remaining on one network or migrating instead to the new forked network. After a hard fork, it may become easier for the hashing power of an individual miner, validator or mining or validating pool to exceed 50% of the processing or validating power of the digital asset network that retained or attracted less processing or validating power, thereby making digital assets that rely on proof-of-work or proof-of-stake more susceptible to attack.

Digital asset networks and related protocols may also be cloned. Unlike a fork of a digital asset network, which modifies an existing blockchain and results in two competing digital asset networks, each with the same genesis block, a "clone" is a copy of a protocol's codebase but results in an entirely new blockchain and new genesis block. Tokens are created solely from the new clone network and, in contrast to forks, holders of tokens of the existing network that was cloned do not receive any tokens of the new network. A clone results in a competing network that has characteristics substantially similar to the network it was based on, subject to any changes as determined by the developer(s) that initiated the clone.

A hard fork or a clone may adversely affect the price of the digital asset at the time of announcement or adoption. For example, the announcement of a hard fork or a clone could lead to increased demand for the pre-fork or pre-clone digital asset, in anticipation that ownership of the pre-fork or pre-clone digital asset would entitle holders to a new digital asset following the fork or clone. The increased demand for the pre-fork or pre-clone digital asset may cause the price of the digital asset to rise. After the hard fork or clone it is possible the aggregate price of the two versions of the digital asset running in parallel would be less than the price of the digital asset immediately prior to the fork or clone.

Moreover, certain digital asset networks have recently implemented, and continue to implement, software upgrades and other changes to their protocols. For example, in September 2022, the Ethereum network activated the long-awaited "Merge" upgrade. The Merge effectively swapped Ethereum's consensus mechanism away from proof-of-work to proof-of-stake. A digital asset network's consensus mechanism is a material aspect of its source code, and any failure to properly implement such a change could have a material adverse effect on the value of digital assets that rely on the network, including some of the digital assets for which we offer investment products, and the market price of our Class A common stock. It is possible that the Merge introduced a not yet discovered error or vulnerability. It is expected that further developments and forks for the Ethereum network are forthcoming. Any future forks could adversely affect our business and results of operations.

In addition to forks, a digital asset may become subject to a similar occurrence known as an airdrop. In an airdrop, the promoters of a new digital asset announce to holders of another digital asset that such holders will be entitled to claim a certain amount of the new digital asset, generally for free, based on the fact that they hold such other digital asset. We refer to the right to receive any benefits arising from a fork, airdrop or similar event as an "Incidental Right" and any such virtual currency acquired through an Incidental Right as "IR Virtual Currency."

With respect to any fork, airdrop or similar event, we have implemented policies with respect to GBTC, BTC Mini, ETHE and ETH Mini to cause them to irrevocably abandon the Incidental Rights and any IR Virtual Currency associated with such event. In the event we seek to change our policy with respect to GBTC, BTC Mini, ETHE, ETH Mini or any other investment product that has been approved for trading on NYSE Arca, an application would need to be filed with the SEC by NYSE Arca seeking approval to amend its listing rules to permit us to distribute the Incidental Rights or IR Virtual Currency in-kind to an agent of the stockholders of our products for resale by such agent. We have no current intention to change our policy with respect to forks, airdrops and similar events, but if we did make such a change, there would be no guarantee that NYSE Arca would seek or obtain the necessary approval from the SEC for any of our investment products for which such approval would otherwise be required. With respect to our other investment products that are not listed on NYSE Arca, we generally evaluate each fork, airdrop or similar event on a case-by-case basis and may decide to abandon Incidental Rights or any IR Virtual Currency resulting from

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

a hard fork, airdrop or similar event should we conclude that such abandonment is in the best interests of the particular investment product. As such, investors in our products may not receive the benefits of any forks, and we may not choose, or be able, to participate in an airdrop or similar event. As a result, the attractiveness of our investment products could be reduced, and investors may choose not to invest in our investment products or to sell their positions in favor of direct investments in digital assets to receive any benefits arising from a fork, airdrop or similar event, and our results of operations could thereby be adversely affected.

***The prices of digital assets generally may be affected by stablecoins (including Tether and USDC), the activities of stablecoin issuers and their regulatory treatment.***

While none of our investment products currently hold stablecoins, and the Custodians do not custody any stablecoins for us or our investment products, we may nonetheless be exposed to certain risks that stablecoins pose for the digital asset market. Stablecoins are digital assets designed to have a stable value over time, as compared to typically volatile digital assets, and are typically marketed as being pegged to the value of a referenced asset, normally a fiat currency, such as the U.S. dollar. Although the prices of stablecoins are intended to be stable compared to their referenced asset, in many cases their prices fluctuate, sometimes significantly. This volatility has in the past impacted the prices of certain digital assets, and has at times caused certain stablecoins to lose their "peg" to the underlying fiat currency. Stablecoins are a relatively new phenomenon, and it is impossible to know all of the risks that they could pose to participants in the digital asset markets.

In addition, some have argued that some stablecoins are or have been improperly issued without sufficient backing in a way that could cause artificial rather than genuine demand for digital assets, raising their prices. Regulators have also charged stablecoin issuers with violations of law or otherwise required certain stablecoin issuers to cease certain operations. For example, on February 17, 2021, the NYAG entered into an agreement with Tether's operators, requiring them to cease any further trading activity with New York persons and pay $18.5 million in penalties for false and misleading statements made regarding the assets backing Tether. On October 15, 2021, the CFTC announced a settlement with Tether's operators in which they agreed to pay $42.5 million in fines to settle charges regarding, among others, Tether's claims that it maintained sufficient U.S. dollar reserves to back every Tether stablecoin in circulation with the "equivalent amount of corresponding fiat currency" held by Tether were untrue.

U.S. Dollar Coin stablecoin ("USDC") is a reserve-backed stablecoin issued by Circle Internet Financial that is commonly used as a method of payment in digital asset markets. The issuer of USDC holds cash deposits at insured depository institutions and uses the Circle Reserve Fund to hold cash, U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Treasury, and repurchase agreements secured by such obligations or cash, which serve as reserves backing USDC stablecoins. While USDC is designed to maintain a stable value at 1 U.S. dollar at all times, on March 10, 2023, the value of USDC fell below 1 U.S. dollar (and remained below for multiple days) after Circle Internet Financial disclosed that $3.3 billion of the USDC reserves were held at Silicon Valley Bank, which had entered FDIC receivership earlier that day. Popular stablecoins are reliant on the U.S. banking system and U.S. treasuries, and the failure of either to function normally could impede the function of stablecoins or lead to outsized redemption requests, and therefore could adversely affect the prices of digital assets and our results of operations.

Given the role that stablecoins play in global digital asset markets, their fundamental liquidity can have a dramatic impact on the broader digital asset market. Because a large portion of the digital asset market still depends on stablecoins such as Tether and USDC, there is a risk that a disorderly de-pegging or a run on Tether or USDC could lead to dramatic market volatility in, and/or materially and adversely affect the prices of, digital assets more broadly. Volatility in stablecoins, operational issues with stablecoins (for example, technical issues that prevent settlement), concerns about the sufficiency of any reserves that support stablecoins or regulatory concerns about stablecoin issuers or intermediaries that support stablecoins could impact individuals' willingness to trade on trading venues that rely on stablecoins and affect the prices of digital assets and our results of operations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***We have an investment product that invests in digital assets associated with DeFi applications and may suffer losses if the DeFi protocols do not function as expected.***

We have an investment product, Grayscale Decentralized Finance (DeFi) Fund, that invests in digital assets associated with DeFi applications. DeFi protocols generally operate pursuant to smart contracts, which are self-executing. Some of these DeFi protocols allow users to, for example, transfer digital assets to a pool from which other users can borrow without requiring an intermediate party to facilitate these transactions. Digital assets transferred to a pool generally generate interest that is distributed to the lender based on the rates at which borrowers repay the loan and can generally be withdrawn with no restrictions. However, these DeFi protocols and activities pose heightened regulatory concerns and are subject to various risks, including, but not limited to, the following, any of which could have an adverse effect on our results of operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Digital assets on DeFi platforms may be determined to be securities and DeFi protocols and activities may be determined to be exchanges subject to federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DeFi protocols, related actors and DeFi activities may be determined to be in violation of the Commodity Exchange Act of 1936 (the "CEA") and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Legislative bodies and regulators may otherwise take novel steps to supervise, limit or even prohibit DeFi protocols and activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Traditional financial services intermediaries, the associations that represent them and their legislative allies may actively encourage policymakers and regulatory authorities to take actions that impede the development and use of DeFi protocols and activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Difficulties in verifying the identity of a transaction counterparty could prevent compliance with regulations or controls relating to AML, financing of terrorism or economic sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Underlying smart contracts may be subject to technical issues, disruptions or security weaknesses or vulnerabilities, thereby putting funds at risk of theft or loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Malicious actors may exploit the structure of underlying smart contracts or applications by using them in unintended ways, even if such use does not technically constitute exploitation of a security weakness, by, for example, manipulating the prices of certain digital assets that trigger second-order behaviors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Core developers with protocol administration rights may make unauthorized or harmful changes to underlying smart contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Underlying collateral may experience significant market price volatility, resulting in deleveraging that moves market prices dramatically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Borrowers may default, resulting in lenders being unable to recover their digital assets.

If any of these risks materialize, then our investment product that invests in digital assets associated with DeFi protocols may be adversely affected.

***The growing prominence of memecoins and their promotion by high-profile figures could materially adversely affect our business and the broader digital asset market.***

The growing prominence of memecoins and their promotion by high-profile figures present unique risks that could materially affect our business and the broader digital asset market. Memecoins are often characterized by extreme volatility, speculative trading and limited fundamental value, which may lead to sudden and significant price fluctuations. The lack of transparency and potential for market manipulation associated with memecoins could expose investors to increased financial and reputational risks. In 2025 we launched Grayscale Dogecoin Trust, which holds DOGE, a digital asset that has historically been considered a memecoin. In addition, negative perception associated with one or more memecoins could negatively impact perception of the digital assets more generally, even if we do not offer a product associated with such memecoin. As a result, reputational risks associated with memecoins generally could adversely impact our business.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Additionally, the recent trend of U.S. and non-U.S. politicians launching or associating with memecoins introduces further political and regulatory complexities. For example, controversy around the launch of a digital asset known as LIBRA by political figures in Argentina reflects how memecoins are increasingly being used as political tools, which may heighten regulatory scrutiny and create market instability. The perceived or actual alignment of certain digital assets with political agendas could lead to increased government intervention, public backlash or restrictions on trading and offering such assets. Any resulting regulatory actions or shifts in investor sentiment could negatively impact the value of our digital asset products and our ability to operate or introduce new offerings.

***The establishment of a strategic Bitcoin reserve or digital asset stockpile by the U.S. government could introduce significant market and regulatory risks that may adversely affect our business and the broader digital asset market.***

On March 6, 2025, President Trump, through executive order, established a Strategic Bitcoin Reserve and Digital Asset Stockpile. The establishment of a Strategic Bitcoin reserve or digital asset stockpile by the U.S. government could introduce significant market and regulatory risks that may adversely affect our business and the broader digital asset market. If the U.S. government were to accumulate and hold significant amounts of Bitcoin or other digital assets, it could influence market liquidity, pricing and overall market stability. Large-scale government acquisitions or liquidations of digital assets could lead to substantial price volatility and disrupt normal market functioning.

Furthermore, the creation of a government-controlled digital asset reserve may lead to increased regulatory oversight and intervention in the digital asset market. Government ownership of strategic digital assets could prompt new legislation, taxation policies and trading restrictions that could alter the competitive landscape and limit our ability to structure and offer digital asset products. Any perceived or actual government influence over the supply and demand dynamics of key digital assets could negatively affect investor confidence and the value of our investment products.

***If a malicious actor or botnet obtains control of more than 50% of the processing or validating power on a digital asset network, or otherwise obtains control over a digital asset network through its influence over core developers or otherwise, then such actor or botnet could manipulate the blockchain of such digital asset.***

If a malicious actor or botnet obtains a majority of the processing or validating power on a digital asset network, as has happened in the past, then it may be able to manipulate transactions on or otherwise alter the underlying network, which could cause financial losses to holders, damage the network's reputation and security and adversely affect the network's value. Such an actor or botnet may also be able to alter the blockchain on which transactions in any digital assets rely by constructing fraudulent blocks or preventing certain transactions from completing in a timely manner, or at all. The malicious actor or botnet could also control, exclude or modify the ordering of transactions. Although the malicious actor or botnet would not be able to generate new tokens or transactions using such control, it may be able to "double-spend" its own digital assets (i.e., spend the same tokens in more than one transaction) and prevent the confirmation of other users' transactions for so long as it maintained control (over 50%). To the extent that such malicious actor or botnet did not yield its control of the processing or validating power on the relevant digital asset network, or the digital asset community did not reject the fraudulent blocks as malicious, reversing any changes made to the relevant blockchain may not be possible. Further, a malicious actor or botnet could create a flood of transactions in order to slow down the relevant digital asset network.

For example, in August 2020, the Ethereum Classic network, a proof-of-work 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.

In addition, in May 2019, the Bitcoin Cash network, a proof-of-work network, experienced a >50% attack when two large mining pools reversed a series of transactions to stop an unknown miner from taking advantage of a flaw in a recent Bitcoin Cash protocol upgrade. Although this particular attack was arguably benevolent, certain individuals believe it negatively impacted the Bitcoin Cash network.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Further, a malicious actor or botnet could create a flood of transactions to slow down the relevant digital asset network. For example, on June 2, 2018, the Horizen network was the target of a double-spend attack by an unknown actor that gained more than 50% of the processing power of the Horizen network. The attack was the result of delayed submission of blocks to the Horizen network. The core developers of Zen subsequently implemented mitigation procedures to significantly increase the difficulty of attacks of this nature by introducing a penalty for delayed block submissions.

The possible crossing of the 50% threshold indicates a greater risk that an individual miner, validator or mining or validating pool could exert authority over the mining or validation of digital asset transactions, and this risk is heightened if over 50% of the processing or validating power on the network falls within the jurisdiction of a single governmental authority and is significantly heightened if over 66% falls within such a jurisdiction. If such events occur on the networks of digital assets for which we offer investment products, and the network participants, including any core developers and administrators of mining or validating pools, do not ensure greater decentralization of the processing or validating power of such network, then the feasibility of a malicious actor obtaining control of the processing or validating power on such network will increase.

There are also concerns that blockchain "bloat" could also contribute to the conditions leading to a >50% attack. As the size of a blockchain grows larger, it requires greater amounts of resources to initially synchronize and validate the entire blockchain. If some potential miners are excluded because these costs become prohibitive, a digital asset network's processing power may become more concentrated in a smaller number of parties, increasing the feasibility of a malicious actor to obtain control of the processing power on the digital asset network.

More generally, the practice of exploiting MEV has become standard and widespread across both proof-of-work- and proof-of-stake-based platforms. MEV exploitation is the practice by which miners or validators take advantage of their role in the selection and ordering of transactions in a block of a particular digital asset network to benefit themselves financially, often at the expense of users. MEV techniques include censoring, frontrunning, "sandwiching," backrunning or otherwise executing arbitrage strategies against transactors. While the practice of MEV may seek to enhance market efficiency, MEV can also reduce the effectiveness of certain blockchain transactions and in turn increase the cost of transacting on networks, which may discourage users from transacting on such networks altogether. There are currently no means to completely mitigate the effects of MEV, and thus, to the extent that we transact on these blockchains, whether for proprietary purposes or on behalf of investors in our investment products, we may be unable to protect us or them from the effects or impacts of MEV, which could include a reduction in the speed, quality or security of trades. Furthermore, if any one digital asset network's user experience is harmed at scale, then the value of the digital assets carried on that network could decline. The occurrence of any of the aforementioned risks associated with MEV could adversely affect the value of digital assets.

A malicious actor may also obtain control over a digital asset network through its influence over core developers by gaining direct control over a core developer or an otherwise influential programmer. To the extent that the digital asset network does not grow, the possibility that a malicious actor may be able to obtain control of the processing or validating power on the network in this manner will remain heightened.

Any of the above events, as well as others, could materially adversely affect the prices of digital assets and our results of operations.

***Competing industries may have more influence with policymakers than the digital asset industry, which could lead to the adoption of laws and regulations that are harmful to the digital asset industry and our business.***

Although its influence over public policy is increasing, the digital asset industry is relatively new and may not have the same access to policymakers and lobbying organizations in many jurisdictions compared to industries with which digital assets may be seen to compete, such as banking, payments and consumer finance. Competitors from other, more established industries may have greater access to and influence with governmental officials and regulators and may be successful in persuading these policymakers that digital assets require heightened levels of regulation compared to the regulation of traditional financial services. As a result, new laws and regulations may be proposed and adopted in the United States and elsewhere, or existing laws and regulations may be interpreted in new ways, that disfavor or impose compliance burdens on the digital asset industry, which could adversely impact the prices of digital assets and our results of operations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

As digital assets have grown in both popularity and market size, various U.S. federal, state, local and foreign governmental organizations, consumer agencies and public advocacy groups have been examining the operations of digital asset networks, users and platforms, with a focus on how digital assets can be used to launder the proceeds of illegal activities, circumvent economic sanctions-related restrictions and fund criminal or terrorist enterprises, as well as the safety and soundness of platforms and other service providers that hold digital assets for users. Many of these entities have called for heightened regulatory oversight and have issued consumer advisories describing the risks posed by digital assets to users and investors.

For instance, on September 16, 2022, the U.S. Treasury and Justice Departments released regulatory and legislative recommendations and priorities to address illicit finance risks connected to the digital asset ecosystem, following President Biden's executive order on the regulation of digital assets. The reports reflect the proactive posture that both the U.S. Treasury and Justice Departments have taken towards the enforcement and implementation of AML standards in the digital asset ecosystem. The UK regulatory framework for cryptoassets continues to evolve rapidly, and firms operating in this space face an increasingly complex and restrictive compliance landscape. For example, as part of its AML efforts, the FCA requires cryptoasset businesses to be duly registered under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended). The FCA has also introduced rules to address harm to retail customers arising from the sale of derivatives and exchange-traded notes that reference certain types of cryptoassets, contending that they are "ill-suited" to retail consumers due to extreme volatility, valuation challenges and association with financial crimes. The rules, which entered into force on January 6, 2021, prohibit the sale, marketing and distribution to retail clients in the U.K. of derivatives and exchange traded notes that reference certain types of unregulated, transferable cryptoassets. The prohibition applies to investment firms, credit institutions and branches in the U.K. of third-country firms that market (among others), distribute or sell digital asset-derivatives or digital asset trading platform traded notes in, or from, the U.K. to retail clients. Many types of cryptoassets, including popular cryptocurrencies such as Bitcoin, are also subject to the U.K.'s financial promotions regime. It is a criminal offense for these products to be marketed in the U.K. unless the relevant financial promotion has been approved by an FCA authorized firm or an exemption applies. The exemptions are narrow and will generally only be available to sophisticated investors. In addition, following the Financial Services and Markets Act 2023, the UK government and regulators are implementing a new regulatory framework for cryptoassets. In April 2025, HM Treasury published draft legislation to bring a wide range of cryptoasset activities within the scope of the UK's regulatory perimeter, including operating a cryptoasset trading venue, providing custody services, and dealing in cryptoassets. The FCA is also consulting on various elements of its forthcoming cryptoasset regime. The final rules are expected to come into force in phases from late 2025 into 2026.

Any of the above events, as well as others, could adversely affect the prices of digital assets and our results of operations.

***If digital asset networks are used to facilitate illicit activities, then businesses that facilitate transactions in digital assets could be at increased risk of criminal enforcement or civil lawsuits, or of having their services cut off, which could negatively affect the prices of digital assets and our results of operations.***

Digital asset networks have in the past been, and may continue to be, used to facilitate illicit activities. If digital asset networks are used to facilitate illicit activities or there are concerns that certain smart contracts could be used to contribute to money laundering or economic sanctions violations, then businesses that facilitate transactions in digital assets could be at increased risk of potential criminal enforcement or civil lawsuits, or of having banking or other services cut off. There is also a risk that certain digital assets could be removed from digital asset trading platforms as a result of these concerns. Other service providers of such businesses may also cut off services if there is a concern that digital assets are being used to facilitate crime. Any of the aforementioned occurrences could increase regulatory scrutiny of the digital asset industry and adversely affect the prices of digital assets and our results of operations.

When we buy, sell or deliver a digital asset, we generally do not transact directly with counterparties other than eligible financial institutions that are subject to federal and state licensing requirements (including entities that are subject to AML and countering the financing of terrorism obligations under the BSA and subject to FinCEN regulation) and that maintain policies, procedures and controls designed to comply with applicable AML and "Know Your Customer" regulations. When such financial institution sources a digital asset in connection with the creation of

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

our investment product's shares or facilitates transactions in digital assets at our direction, it directly faces another counterparty.

If, despite their and/or our policies, procedures and controls, we or these financial institutions were to transact, directly or indirectly, with a party involved in illicit activity or with a sanctioned person or territory, we and these financial institutions would be at increased risk of potential criminal or civil liability, which could adversely affect our results of operations.

***We currently offer investment products associated with certain smart contract-based digital assets. If the underlying smart contracts for these digital assets do not operate as expected, then they could lose value and our business could be adversely affected.***

Certain of our investment products hold digital assets on networks or protocols that support smart contracts, such as ETHE. Smart contracts are software programs that store and transfer value and execute automatically when certain conditions are met. Because smart contracts typically cannot be stopped from self-executing or reversed after self-executing, vulnerabilities in their programming and design can have damaging, and even permanent, ramifications. For instance, in April 2018, a batch overflow bug was found in many Ethereum-based ERC20-compatible smart contract tokens that allowed hackers to create a large number of smart contract tokens, causing multiple digital asset trading platforms worldwide to shut down ERC20-compatible token trading. Similarly, in March 2020, a design flaw in the MakerDAO smart contract caused forced liquidations of digital assets at significantly discounted prices, resulting in millions of dollars of losses to users who had deposited digital assets into the smart contract. If any such vulnerabilities or flaws come to fruition, then smart contract-based digital assets may suffer negative publicity, be exposed to security vulnerabilities, decline significantly in value and lose liquidity over a short period of time. As smart contract-based digital assets continue to develop and evolve, we may be subject to unintended or unforeseen regulatory risks and regulatory actions, which may be inconsistently applied across jurisdictions.

In some cases, smart contracts can be controlled by one or more "admin keys" that allow a small group of holders to have significant unilateral control and influence over key decisions related to their underlying networks ("super users"). These super users may have the ability to unilaterally make changes to the smart contract, enable or disable features on the smart contract, change how the smart contract receives external inputs and data and make other changes to the smart contract. For smart contracts that hold a pool of assets, these super users may also be able to extract funds from the pool, liquidate assets held in the pool or take other actions that decrease the value of the assets held by the smart contract in reserves. Even for digital assets that have adopted a decentralized governance mechanism, such as smart contracts that are governed by the holders of a governance token, such governance tokens can be concentrated in the hands of a small group of core community members, who would be able to make similar changes unilaterally to the smart contract. If any such super user or group of core members unilaterally make adverse changes to a smart contract, then the design, functionality, features and value of the smart contract and its related digital assets may be harmed. In addition, assets held by the smart contract in reserves may be stolen, misused, burnt, locked up or otherwise become unusable and irrecoverable.

These super users can also become targets of hackers and malicious attackers. If an attacker is able to access or obtain the super user privileges of a smart contract, or a smart contract's super users or core community members take actions that adversely affect the smart contract, then investors in our investment products who hold and transact in the affected digital assets may experience decreased functionality and value of the applicable digital assets, up to and including a total loss of the value of such digital assets. Although we do not control these smart contracts, any such events could cause investors in our investment products to seek damages against us for their losses, result in reputational damage to us or in other ways adversely affect our business.

***Private keys are often required to access or transfer digital assets held in custody and the loss or destruction of such private keys may cause complete loss of the ability to retrieve or transfer such digital assets. If our Custodians are unable to access the private keys and any backups thereto, or it experiences a cybersecurity*** 

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***breach, hack or other data loss that would restrict its ability to access any digital asset held in custody, then we could become subject to reputational harm, legal claims, regulatory scrutiny and other losses.***

Digital assets are typically controlled by the holder of the unique private key for the wallet in which the digital assets are held. While public addresses are generally published when used in a transaction on a blockchain, private keys are required to access, retrieve or transfer the digital assets in the wallet. Therefore, protection and safekeeping of private keys is necessary to prevent unauthorized third-party access to or control over the digital assets held in a wallet. If any of the private keys for our wallets are stolen, destroyed, lost or otherwise compromised or unavailable, and the backup versions of these private keys are not available at the time or have been otherwise stolen or compromised, then our Custodians will not be able to access the digital assets held in the omnibus wallets.

Digital assets, including wallets and other blockchain technologies, can be hacked or otherwise subject to security breaches and other malicious activities, which may result in, among other things, malicious actors obtaining the ability to retrieve, transfer and otherwise misappropriate the digital assets custodied by a Custodian on behalf of our investment products. Destruction, loss or theft of private keys for, or hack or other compromise or unavailability of, wallets holding digital assets custodied by a Custodian on behalf of our investment products could adversely affect the ability of investors in digital assets to retrieve, access or transfer the digital asset and could subject us to significant liabilities and financial losses in addition to losing the trust of investors in digital assets and other market participants. For these reasons, any destruction, loss or theft of private keys due to a cybersecurity breach, hack, misconduct or error, or any other compromise of the security and confidentiality of the private keys for the wallets holding digital assets could harm our brand and reputation, could result in significant legal liability or other financial losses and could adversely affect our business.

## **Risk Factors Related to Regulation and Litigation** 
***A determination that a digital asset is a "security" could adversely affect the value of that digital asset and potentially digital assets generally, and therefore adversely affect our business, financial condition and results of operations, as well as the market price of our Class A common stock.***

The SEC and its staff, at least under the prior administration, took the position that a range of digital assets, products and services fall within the definition of a "security" under the U.S. federal securities laws. Whether or not an asset, product or service is a security or constitutes a securities offering under federal securities laws is ultimately determined by a federal court. Any enforcement action or investigation by the SEC or a state securities regulator, or a court decision or SEC announcement, implying, asserting or finding that a particular digital asset is a security for purposes of the federal or state securities laws would be expected to have an immediate and material adverse impact on the value of that digital asset if it is then generally used or traded in the United States. Depending on the specific characteristics of the digital asset, this could have adverse spillover effects on the value of other digital assets perceived to share similar characteristics. This is because the business models behind most digital assets are incompatible with existing U.S. regulations applicable to securities. If a digital asset is found to be a security, then it is likely to become difficult or impossible for the digital asset to be legally traded, cleared or custodied in the United States through the same channels used by non-security digital assets, which, in addition to materially adversely affecting the value of that digital asset, is likely to significantly impact its liquidity and market participants' ability to convert the digital asset into U.S. dollars. For example, all transactions in such digital asset would have to be registered with the SEC and potentially state securities regulators, or conducted in accordance with exemptions from registration, which could severely limit its liquidity and usefulness. Moreover, the network on which such digital asset is utilized may be subject to regulation as a securities intermediary, which could effectively render the network impracticable for its existing purposes. To the extent that digital assets held by investment products that we sponsor are implied, asserted or found to be a security, or are impacted by adverse spillover effects from an implication, assertion or finding with respect to another digital asset that is perceived to share similar characteristics, there would likely be an immediate negative impact on the share price of that investment product, and we may be required to dissolve such investment product and liquidate its assets.

Whether a digital asset is a security or offers and sales of a digital asset are securities transactions under the federal securities laws depends on whether it is included in the lists of instruments making up the definition of "security" in the Securities Act, the Exchange Act, the Investment Advisers Act and the Investment Company Act of 1940, as amended (the "Investment Company Act"). Digital assets as such do not appear in any of these lists, although

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

each list includes the terms "investment contract" and "note," and the SEC has typically analyzed whether a particular digital asset is a security or the offer and sale of a digital asset is a securities transaction by reference to whether it meets the tests developed by the federal courts interpreting these terms, known as the *Howey* and *Reves* tests, respectively. For many digital assets, whether or not the *Howey* or *Reves* tests are met is difficult to resolve definitively, and substantial legal arguments can often be made both in favor of and against a particular digital asset qualifying as a security or a particular offer and sale of a digital asset qualifying as a securities transaction under one or both of the *Howey* and *Reves* tests. Adding to the complexity, the SEC staff has indicated that the security status of a particular digital asset can change over time as the relevant facts evolve.

Certain state regulators or attorneys general have also alleged that certain digital assets are securities under relevant state laws and that digital asset trading platforms' activities violate state securities laws.

Additional public, though non-binding, statements by senior officials at the SEC have indicated that the SEC does not consider Bitcoin or Ether and, in certain circumstances, memecoins or some stablecoins, to be securities. In addition, the SEC, by action through delegated authority approving the exchange rule filings to list shares of trusts holding Bitcoin and Ether as commodity-based ETPs, appears to have implicitly taken the view that each of Bitcoin and Ether is not a security. The SEC staff has also provided informal assurances via no-action letters to a handful of promoters that their digital assets are not securities. On the other hand, the SEC under the prior administration brought enforcement actions against the issuers and promoters of several other digital assets on the basis that the digital assets in question are securities, as well as against digital asset trading platforms for operating unregistered securities exchanges on the basis that certain of the digital assets traded on their platforms are securities. In January 2025, the SEC launched a crypto task force dedicated to developing a comprehensive and clear regulatory framework for digital assets led by Commissioner Hester Peirce. Subsequently, Commissioner Peirce announced a list of specific priorities to further that initiative, which included pursuing final rules related to a digital asset's security status, a revised path to registered offerings and listings for digital assets-based investment vehicles and clarity regarding digital asset custody, lending and staking. Additionally, on July 31, 2025, Chairman Atkins announced "Project Crypto," a Commission-wide initiative to modernize securities rules for digital assets, reshore innovation in the United States, and implement the recommendations of the report by the interagency working group tasked with "proposing a Federal regulatory framework governing the issuance and operation of digital assets."

The SEC's positions on the federal securities law status of particular digital assets are closely watched and can have dramatic effects, whether or not the SEC's positions prevail in federal court. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In December 2020, the SEC filed a complaint against the issuer of XRP, Ripple Labs, Inc., and two of its executives, alleging that they raised more than $1.3 billion through XRP sales that should have been registered under the federal securities laws. Subsequently, in July 2023, the District Court for the Southern District of New York held that while XRP is not a "security," certain sales of XRP to certain buyers (but not other types of sales to other buyers) amounted to "investment contracts" under the *Howey* test. The District Court entered a final judgment in the case on August 7, 2024, and the parties each dismissed their appeals to the Second Circuit on August 7, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In June 2023, the SEC filed complaints against Coinbase and Binance alleging, among other things, that such firms were operating as unregistered securities exchanges, brokerages and clearing agencies. In its complaints, the SEC asserted that SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, COTI, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO are securities under the federal securities laws. The SEC and Coinbase jointly dismissed the SEC's lawsuit in February 2025 with prejudice, and the SEC and Binance jointly dismissed the SEC's lawsuit in May 2025 with prejudice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In November 2023, the SEC filed a complaint against Kraken, alleging that it operated as an unregistered securities exchange, brokerage and clearing agency. In its complaint, the SEC asserted that ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG and SOL are securities under the federal securities laws. In March 2025, Kraken and the SEC jointly dismissed the SEC's lawsuit with prejudice.

In the days following the announcement of SEC enforcement actions against certain digital asset issuers and trading platforms, the price of various digital assets have declined significantly and may continue to decline as such cases advance through the federal court system. While several other digital assets market participants have also

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

announced that the SEC informed them that the SEC was terminating its investigation or enforcement action into their firm, the final outcome of many of these enforcement and judicial proceedings (to the extent not yet dismissed), their effect on the broader digital asset ecosystem and the reputational impact on industry participants, remain uncertain. The SEC's actions, as well as seemingly inconsistent views of different courts underscore the continuing uncertainty around which digital assets, or transactions in digital assets, are securities and what the correct analysis is to determine each digital asset's status. For example, the conflicting district court opinions and analyses demonstrate that factors such as how long a digital asset has been in existence, how widely held it is, how large its market capitalization is, the manner in which it is offered, sold or promoted, and whether it has actual use in commercial transactions, ultimately may have limited to no bearing on whether the SEC, a state securities regulator or any particular court will find it to be a security.

As described under "—A determination that a digital asset is a 'security' for purposes of the federal securities laws could have adverse regulatory consequences for us and our investment products with respect to the Investment Company Act and the Investment Advisers Act, and therefore adversely affect our business, financial condition and results of operations, as well as the market price of our Class A common stock," the determination that a digital asset is a security under the federal securities laws could also have adverse regulatory consequences for us and our investment products with respect to the Investment Company Act and Investment Advisers Act.

To the extent any digital asset for which we offer an investment product is impacted by an implication, assertion or finding that the digital asset is a security, our business, financial condition and results of operations would be adversely affected. For example, in response to the SEC's action against the issuer of the digital asset XRP, certain significant market participants announced that they would no longer support XRP and announced measures, including the delisting of XRP from major digital asset trading platforms, resulting in our conclusion that it was likely to be increasingly difficult for U.S. investors, including in Grayscale XRP Trust (XRP), to convert XRP into U.S. dollars. We subsequently dissolved Grayscale XRP Trust (XRP) and liquidated its assets. In addition, a final determination by the SEC, a state securities regulator or a court that one or more of the digital assets for which we offer investment products are securities may adversely affect the value of such digital assets and result in potentially extraordinary, nonrecurring expenses to, or termination of, one or more of our affected investment products.

Because the fees on our investment products are generally denominated in the underlying digital assets, a decline in the price of that digital asset would reduce the dollar value of the fees we earn from that investment product. Further, declines in the prices of digital assets would likely trigger net outflows from our investment products for which we operate a redemption program, further reducing our fees. Depending on which digital asset is affected, these adverse effects could be material to us and to the market price of our Class A common stock.

***A determination that a digital asset is a "security" for purposes of the federal securities laws could have adverse regulatory consequences for us and our investment products with respect to the Investment Company Act and the Investment Advisers Act, and therefore adversely affect our business, financial condition and results of operations, as well as the market price of our Class A common stock.***

In addition to the potential for adverse effects to our business, financial condition and results of operations described under "—A determination that a digital asset is a 'security' could adversely affect the value of that digital asset and potentially digital assets generally, and therefore adversely affect our business, financial condition and results of operations, as well as the market price of our Class A common stock," a determination that a digital asset is a security under the federal securities laws has implications for the regulatory obligations that apply pursuant to the Investment Company Act and/or the Investment Advisers Act.

The Investment Company Act is intended to protect investors (for example, by preventing insiders from managing investment companies to their benefit and to the detriment of public investors), and it requires an issuer primarily engaged in the business of investing, reinvesting or trading in securities to register as an investment company, unless a valid exemption applies. If one or more digital assets underlying our investment products is determined to be a security, then such investment product may be required to register as an investment company under the Investment Company Act.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

If we determine that any of our investment products is likely to be required to register as an investment company under the Investment Company Act, then we may direct the restructuring of such investment product, disposing of digital assets that are determined to be securities and/or acquiring digital assets that are not determined to be securities. These dispositions or acquisitions could be required to take place under unfavorable market conditions and may result in the incurrence of losses by such investment products. Alternatively, we may seek to register such investment product as an investment company under the Investment Company Act. Such additional registration would result in extraordinary, recurring or nonrecurring expenses. It may also be difficult or impossible to operate an investment product investing in digital assets in accordance with the requirements applicable to investment companies registered under the Investment Company Act. For example, among other requirements, the Investment Company Act requires the assets of a registered investment company to be maintained with a custodian that meets the requirements of the Investment Company Act, limits the extent to which certain registered investment companies can hold illiquid assets, imposes requirements on the valuation of the assets of registered investment companies and restricts the ability of registered investment companies to transact with affiliated persons. There is no guarantee that we would be able to take actions to bring our investment products into compliance with the Investment Company Act, in which case we may be forced to dissolve such investment products and liquidate their assets. Further, we and our investment products could be deemed to have participated in illegal offerings of securities in violation of the Investment Company Act, thereby incurring SEC monetary fines and other penalties, including restrictions on the ability to conduct business. In addition, counterparties to contracts to which our investment products are party could seek to avoid their obligations on grounds that contracts with illegally unregistered investment companies are unenforceable.

Even if we are able to register an investment product as an investment company under the Investment Company Act or otherwise restructure an investment product to become compliant with the Investment Company Act, any steps we are able to take to ensure future compliance with the Investment Company Act would not insulate us or our investment products from liability for past violations. Any of these events could adversely affect our business, financial condition and results of operations, as well as the market price of our Class A common stock.

If any of our investment products becomes subject to the Investment Company Act, then we may become subject to registration and regulation as an investment adviser under the Investment Advisers Act, unless a valid exemption applies. If a digital asset is determined to be a security, and we administered an investment product for such digital asset in a manner implicating Investment Advisers Act registration requirements without being so registered or without a valid exemption, then we could incur SEC monetary fines and other penalties, including restrictions on our ability to conduct business.

Moreover, the Investment Advisers Act mandates that if a registered adviser has custody of client funds and securities, it must maintain them with a "qualified custodian" as defined in Rule 206(4)-2(d)(6). Given the characteristics of digital assets and the relative novelty of this asset class, there is a limited number of qualified custodians available at this time, and there can be no assurance that we will be successful in maintaining our digital assets or those of our investment products with the Custodians, or another qualified custodian. There can be no assurance that a Custodian would continue to qualify as a qualified custodian under the final rule. Difficulties in maintaining a qualified custodian could potentially cause us to dissolve an investment product and liquidate its assets.

***Our process for analyzing whether or not a particular digital asset is a security or a transaction in a particular digital asset is a securities transaction for purposes of the federal securities laws may not yield results that are consistent with subsequent determinations by the SEC or federal courts, or with similar determinations made by our competitors.***

We utilize a process designed to analyze whether any of the digital assets for which we offer investment products could be deemed to be a "security" under the federal securities laws, which evolves to take into account developments in case law, regulatory guidance, facts and technology of which we become aware. To the extent any such development implicates the security status of a particular digital asset for which we offer an investment product, we endeavor to reassess our conclusion with respect to such digital asset. We believe that our process reflects a thoughtful analysis that is reasonably designed to enable us to offer investment products for digital assets that are not securities under the federal securities laws. Our process does not include a state-by-state securities laws analysis. Nonetheless, in light of the inherent uncertainties, continually evolving case law and the fact-based nature of our analysis, we cannot guarantee that a federal court having final determinative authority on the topic will agree with our conclusion with respect to any particular digital asset or transaction in a particular digital asset, or that regulatory or legal action will be precluded.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

As part of determining whether a particular digital asset is a security, or a transaction in a particular digital asset by us is a securities transaction, for purposes of the federal securities laws, we take into account a number of factors, including the various definitions of "security" under the federal securities laws and federal court decisions interpreting elements of these definitions, such as the U.S. Supreme Court's decisions in the *Howey* and *Reves* cases, and their progeny, as well as reports, orders, press releases, public statements and speeches by the SEC, its commissioners and its staff providing guidance on when a digital asset may be a security or when an offer and sale of a digital asset may be a securities transaction for purposes of the federal securities laws.

Finally, we seek advice with respect to the security status of the digital asset with external counsel and receive a memorandum regarding the status of such digital asset under the federal securities laws. Usually drawing on publicly available information, analyses from external counsel typically involve a review of the often-complex facts surrounding a particular digital asset's underlying technology, creation, use case and usage development, distribution and secondary market trading characteristics, as well as contributions of and marketing or promotional efforts by the individuals or organizations who appear to be involved in these activities, among other relevant facts. This publicly available information, usually found on the internet, often includes information that originated with or is attributed to such individuals or organizations, as well as information from third-party sources and databases that may or may not have a connection to such individuals or organizations. We and our external counsel often have no independent means of verifying the accuracy or completeness of such information and must necessarily assume that it is materially accurate and complete for purposes of the *Howey* and *Reves* analyses.

After having gathered this information, external counsel typically analyzes it in light of the *Howey* and *Reves* tests to inform our judgment as to whether or not a federal court would conclude that the digital asset, or transactions in the digital asset, in question is or is not a security, or are or are not securities transactions, respectively, for purposes of the federal securities laws. Often, certain factors appear to support a conclusion that the digital asset or certain transactions in the digital asset in question is a security or securities transaction, respectively, while other factors appear to support the opposite conclusion. In such cases, external counsel endeavors to weigh the importance and relevance of the competing factors. This analytical process is further complicated by the fact that, at present, federal judicial case law applying the relevant tests to digital assets is limited, and in some situations, inconsistent, with no federal appellate court having substantively analyzed the question on the merits. In addition, as each digital asset presents its own unique set of relevant facts, it is not always possible to directly analogize the analysis of one digital asset to another. Given the relative novelty of digital assets, the challenges inherent in fact-gathering for particular digital assets and the fact that federal courts have only recently been tasked with adjudicating the applicability of federal securities law to digital assets, at present, external counsel is generally not in a position to render a legal "opinion" on the securities law status of any digital asset.

In light of these uncertainties and the fact-based nature of the analysis, we acknowledge that the SEC, or a federal court having final determinative authority on the topic, may take a contrary position to ours for a particular digital asset. Our conclusion, even if reasonable under the circumstances, would not preclude regulatory or legal action based on the determination that a digital asset underlying one of our investment products is a security, which would have a material adverse effect on our business and results of operations.

If we determine that a particular digital asset, or transactions in a particular digital asset, is a security or are securities transactions, respectively, under the federal securities laws, whether this determination is initially made by us, or because a federal court upholds an allegation that a particular digital asset is a security, then we do not intend to permit our investment products to continue holding that digital asset in a way that would violate the federal securities laws. Upon such determination, we would either dispose of such digital asset, dissolve the investment product and liquidate its assets or potentially seek to manage its affairs in a manner that complies with the federal securities laws, including the Investment Company Act. Because the legal tests for determining whether a digital asset, or transactions in the digital asset, is or is not a security, or are or are not securities transactions, respectively, often leave room for interpretation, for so long as we believe there to be good faith grounds to conclude that an underlying digital asset is not a security, we do not intend to dispose of a digital asset or dissolve or restructure the investment product or liquidate its assets on the basis that any particular digital asset holding could at some future point be determined to be a security.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Moreover, due to the complexities in applying the federal securities laws to digital assets, as well as the fact that different companies doing business in the digital asset industry take varying approaches to digital asset analyses, we expect that competitors may from time to time reach different conclusions from us on the security status of a particular digital asset or digital asset category. Although we anticipate that these differences will narrow over time as the federal courts address the security status of larger numbers of digital assets, as the SEC issues new rules or guidance or as Congress enacts relevant legislation, until that occurs, if competitors conclude that they can hold digital assets in ways that we do not permit, then they may have business and revenue opportunities that are not available to us.

***Registration and compliance with CFTC regulations and rulemaking could result in potentially extraordinary and nonrecurring expenses and cause us to dissolve an investment product if it is deemed to be a commodity interest pool under the CEA.***

CFTC regulations and rulemaking may impact the manner in which digital assets are treated. In particular, a digital asset may be classified by the CFTC as a "commodity interest" under the CEA, which may subject us to regulation under the CEA and CFTC regulations. To the extent our investment products hold assets that are commodity interests, we may be required to register as a commodity pool operator or commodity trading adviser with the CFTC and become a member of the National Futures Association. We may also be subject to additional regulatory requirements with respect to our investment products, including disclosure and reporting requirements. These additional requirements may result in extraordinary, recurring and/or nonrecurring expenses. If we determine not to comply with such additional regulatory and registration requirements, then we would dissolve the investment product and liquidate its assets. Any such dissolution and liquidation would result in a decrease in our AUM and revenues.

***Compliance with money services business or money transmitter regulations may force us to incur extraordinary and nonrecurring expenses or subject us to enforcement actions.***

To the extent that our activities may cause us to be deemed a money services business ("MSB") under the regulations promulgated by FinCEN, we may be required to register with FinCEN as an MSB and comply with the BSA and its implementing regulations, as applicable to MSBs, including the AML compliance program, recordkeeping, and reporting requirements applicable to MSBs. Similarly, our activities may require us to be licensed as a money transmitter or as a digital asset business, such as under the New York State Department of Financial Services' BitLicense regulations, Louisiana's Virtual Currency Businesses Act or California's Digital Financial Assets Law, once effective. Compliance with such laws and regulations may force us to incur extraordinary recurring and nonrecurring expenses. If we decided to seek any licenses, there is no guarantee that we would timely receive them. We may decide instead to dissolve an investment product and liquidate its assets, which would result in a decrease in our AUM and revenues.

Additionally, to the extent we are found to have operated without appropriate state licenses or federal registration and/or to have failed to comply with the BSA, we may be subject to investigation and to administrative, civil or criminal proceedings, which may lead to monetary fines and penalties and/or equitable relief, and we may face loss of banking or other business relationships and reputational harm.

***We are required to comply with certain laws related to economic sanctions.***

We are required to comply with laws and regulations related to economic sanctions that are administered and enforced by OFAC and/or the U.S. Department of State. U.S. economic sanctions laws and regulations generally restrict dealings with certain governments, countries or territories that are the target of comprehensive sanctions, as well as blocked persons, including persons on the List of Specially Designated Nationals and Blocked Persons, and any person owned, directly or indirectly, individually or in the aggregate, by one or more such person or persons. While we maintain policies, procedures, and controls to promote compliance with U.S. economic sanctions, there can be no guarantee that these measures will prevent all breaches of U.S. economic sanctions requirements. If we were to be found to have potentially violated U.S. economic sanctions, even inadvertently, we may be subject to investigation and to administrative, civil or criminal proceedings, which may lead to monetary fines and penalties, and may face loss of banking or other business relationships and reputational harm. We may also be required to comply with economic sanctions imposed by countries other than the United States, and noncompliance with such requirements could lead to similar negative consequences and substantial impacts on us.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***We are subject to extensive government regulations. Our failure or inability to comply with these regulations could materially adversely affect our business, financial condition and results of operations.***

As a digital asset-focused investment platform, we are subject to extensive government regulations. We are guided in significant part by regulatory regimes that might apply to digital assets that are not clear or are not yet developed. To the extent that there is any ambiguity as to whether a digital asset held by our investment products or otherwise under our management is a security, the applicability of many regulations to our business will not be clear.

We regularly rely on exemptions in the United States from various laws, including the Securities Act, in conducting our activities. These exemptions are sometimes highly complex and may, in certain circumstances, depend on compliance by third parties we do not control. If for any reason these exemptions were to become unavailable to us, then we could become subject to additional restrictive and costly registration requirements, regulatory actions or third-party claims, and our business could be materially adversely affected. For example, in offering new investment products, we typically rely on private placement exemptions from registration under the Securities Act, including Rule 506 of Regulation D. However, Rule 506 becomes unavailable to issuers (including our investment products) if the issuer or any of its "covered persons" (certain officers and directors and third parties, including, among others, promoters, placement agents and beneficial owners of 20% of outstanding voting securities of the issuer) has been the subject of a "disqualifying event," which includes a variety of criminal, regulatory and civil matters (the so-called "bad actor" disqualification). If our investment products or any of the covered persons associated with our investment products are subject to a disqualifying event, then one or more of our investment products could lose the ability to issue shares in a Rule 506 private offering for a significant period of time, which could impair our ability to manage the affairs of our existing investment products and to organize and offer new investment products, and, therefore, materially adversely affect us. In addition, if certain of our employees or any potential investor has been the subject of a disqualifying event, then we could be required to reassign or terminate such employee or to reduce or refuse the investment of such an investor, which could impair our relationships with investors, harm our reputation or make it more difficult to offer investment products.

Further, conflicts of interest may arise among us and our affiliates, including our subsidiaries, on the one hand, and our investment products and their stockholders, on the other hand. We have not established formal procedures to resolve all potential conflicts of interest, and stockholders of our investment products may be dependent on the good faith of the respective parties subject to such conflicts to resolve them equitably. Although we attempt to monitor these conflicts, it is extremely difficult, if not impossible, for us to ensure that these conflicts do not, in fact, result in adverse consequences to our investment products. If we fail, or appear to fail, to deal appropriately with any of these conflicts, then we may face reputational damage, litigation, regulatory proceedings or penalties, fines or sanctions, any of which could materially adversely affect our business, financial condition and results of operations.

We also operate an investment advisory subsidiary, Grayscale Advisors, LLC ("GSA"), and broker-dealer subsidiary, Grayscale Securities, LLC ("GSS"), each of which is subject to additional, specific regulatory schemes. GSA is registered as an investment adviser with the SEC under the Investment Advisers Act and is regulated thereunder, and serves as an advisor to our Grayscale Bitcoin Miners ETF ("MNRS") and Grayscale Dynamic Income Fund ("GDIF"). MNRS is registered under the Investment Company Act and is subject to the Securities Act and the rules and regulations thereunder and GSA's management of MNRS and GDIF are subject to the Investment Advisers Act and the rules and regulations thereunder. The Investment Advisers Act and the Investment Company Act, together with the rules and regulations thereunder and related interpretations of the SEC, impose numerous obligations and restrictions on investment advisers and registered investment companies, including requirements relating to the safekeeping of client funds and securities, limitations on advertising, disclosure and reporting obligations, prohibitions on fraudulent activities, restrictions on certain transactions between an adviser and its clients, and between a registered investment company and its advisers and affiliates, and other detailed operating requirements, as well as general fiduciary obligations. For more information on the risks associated with the Investment Company Act and Investment Advisers Act, see "—A determination that a digital asset is a 'security' for purposes of the federal securities laws could have adverse regulatory consequences for us and our investment products with respect to the Investment Company Act and the Investment Advisers Act, and therefore adversely affect our business, financial condition and results of operations, as well as the market price of our Class A common stock."

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

GSS is subject to regulatory restrictions and requirements imposed by applicable statutes, regulations and policies in the jurisdictions in which it operates. GSS is registered with the SEC and is a member of FINRA. GSS serves as a placement agent in the creation of shares, as well as the distributor and marketer for a number of our investment products. As a registered broker-dealer, GSS is subject to regulation that covers all aspects of its securities business, including sales and trading methods, trade practices, use and safekeeping of customers' funds and securities, capital structure and requirements, recordkeeping and the conduct of broker-dealer personnel, including officers and employees. GSS is subject to periodic examinations and investigations by the SEC and FINRA. GSS is also subject to the BSA, as amended, including by the USA PATRIOT Act of 2001, and the implementing regulations thereunder, which require financial institutions, including broker-dealers, to establish AML compliance programs, file suspicious activity and other reports with the U.S. government and maintain certain records. U.S. government agencies and self-regulatory organizations, including state securities commissions, are empowered to enforce these regulatory restrictions and requirements and conduct administrative proceedings that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of broker-dealers from registration or membership. Broker-dealers must also implement related customer identification procedures and beneficial ownership identification procedures.

Further, we are also subject to ongoing examinations, oversight and reviews by U.S. federal and state regulators and financial services regulators, which each have broad discretion to audit and examine our business. We are periodically subject to audits and examinations by these regulatory authorities. As a result of findings from these audits and examinations, regulators have in the past required, are requiring and may in the future require us to take certain actions, including amending, updating or revising our compliance measures from time to time, limiting the kinds of investors which we provide products to, changing, terminating or delaying the introduction of our existing or new investment products, and undertaking further external audit or being subject to further regulatory scrutiny. For example, on April 1, 2014, GBTC launched a program pursuant to which its stockholders could request redemptions from Genesis Global Trading, Inc. ("Genesis Global Trading"), a former affiliate of ours. On September 23, 2014, Genesis Global Trading received a letter from the staff of the SEC's Office of Compliance Inspections and Examinations summarizing the staff's findings from an onsite review of Genesis Global Trading's broker-dealer activities conducted in June 2014. In its exit report, the staff stated that it had concluded that GBTC's redemption program, in which its stockholders were permitted to request the redemption of their shares through Genesis Global Trading, appeared to violate Regulation M under the Exchange Act because such redemptions took place at the same time that GBTC was in the process of creating shares. On July 11, 2016, Genesis Global Trading and GBTC entered into a settlement agreement with the SEC whereby they agreed to a cease-and-desist order against future violations of Rules 101 and 102 of Regulation M under the Exchange Act. Genesis Global Trading also agreed to pay disgorgement of redemption fees, including pre-judgment interest, of approximately $54,000.

We may receive examination reports citing violations of rules and regulations and inadequacies in existing compliance programs, and requiring us to enhance certain practices with respect to our compliance program, including due diligence, monitoring, training, reporting and recordkeeping. Implementing appropriate measures to properly remediate these examination findings may require us to incur significant costs, and if we fail to properly remediate any of these examination findings, then we could face civil litigation, significant fines, damage awards, forced removal of certain employees including members of our executive team, barring of certain employees from participating in our business in whole or in part, revocation of existing licenses, limitations on existing and new investment products, reputational harm, negative impact to our existing relationships with regulators, exposure to criminal liability or other consequences.

Further, should strict legal and regulatory requirements and additional regulatory investigations and enforcement occur or intensify, it may continue to result in changes to our business, as well as increased costs, and supervision and examination for both us and our agents and service providers. New laws, regulations or interpretations may result in additional litigation, regulatory investigations, and enforcement or other actions, including preventing or delaying us from offering certain investment products offered by our competitors, or could impact how we offer such products. Adverse changes to, or our failure to comply with, any laws and regulations have had, and may continue to have, an adverse effect on our reputation and brand and our business, operating results and financial condition. Such additional requirements could cause us to incur extraordinary expenses, possibly materially adversely affecting our business, financial condition and results of operations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

All of the foregoing laws and regulations, as well as any other laws and regulations we are or may become subject to, are complex and we are required to expend significant resources to monitor and maintain our compliance with such laws and regulations. It is also possible that the current or a new Administration and the current or a new Congress in the United States implement new laws and regulations that we may be required to expend significant resources on understanding and complying with. Any failure on our part to comply with these and other applicable laws and regulations could result in regulatory fines, suspensions of personnel or other sanctions, including revocation of our registration or that of our subsidiaries as an investment adviser or broker-dealer, which could, among other things, require changes to our business practices and scope of operations or harm our reputation, which, in turn, could have a material adverse effect on our business, financial condition and results of operations.

In addition, financial services regulation is constantly changing, and new laws or regulations, or new interpretations of existing laws or regulations, could have a materially adverse impact on our ability to operate as currently intended, or require us to obtain additional or newly created registrations or licenses in the future and cause us to incur significant expense in order to ensure compliance. It is not currently clear to what extent federal and state financial services regulators will continue enforcing existing laws, regulations, and rules and will continue to enhance their supervisory expectations regarding the management of legal and regulatory compliance risks. These potential regulatory changes and uncertainties make our business planning more difficult and could result in changes to our business model and potentially adversely impact our results of operations.

Proposals to change the statutes affecting financial services companies are frequently introduced in Congress and state legislatures that, if enacted, may affect their operating environment and the registrations or licenses we require in substantial and unpredictable ways. In addition, numerous federal and state regulators have the authority to promulgate or change regulations that could have a similar effect. We cannot determine with any degree of certainty whether any such legislative or regulatory proposals will be enacted and, if enacted, the ultimate impact that any such potential legislation or implementing regulations, or any such potential regulatory actions by federal or state regulators, would have upon our business.

New laws, regulations, policy or changes in enforcement of existing laws or regulations applicable to our business, or reexamination of current practices, could adversely impact our profitability, limit our ability to continue existing or pursue new business activities, require us to change certain of our business practices or the registrations or licenses we are required to hold or obtain, affect retention of key personnel, or expose us to additional costs (including increased compliance costs and/or customer remediation). These changes also may require us to invest significant resources, and devote significant management attention, to make any necessary changes and could adversely affect our business.

***The nature of our business requires the application of complex financial accounting rules, and there is limited guidance from accounting standard-setting bodies.***

The accounting rules and regulations that we must comply with are complex and subject to interpretation by the Financial Accounting Standards Board (the "FASB"), the SEC and various bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect on our reported financial results and may even affect the reporting of transactions completed before the announcement or effectiveness of a change. Recent actions and public comments from the FASB and the SEC have focused on the integrity of financial reporting and internal controls. In addition, many companies' accounting policies are being subject to heightened scrutiny by regulators and the public. Further, there has been limited precedents for the financial accounting of digital assets and related valuation and revenue recognition. Moreover, a change in these principles or interpretations could have a significant effect on our reported financial results, and may even affect the reporting of transactions completed before the announcement or effectiveness of a change. For example, in December 2023, the FASB issued Accounting Standards Update No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (ASU 2023-08): Accounting for and Disclosure of Crypto Assets ("ASU 2023-08"), which represents a significant change in how entities that hold digital assets account for certain of those holdings. Previously, digital assets held were accounted for as intangible assets with indefinite useful lives, which required us to measure digital assets at cost less impairment. Effective as of January 1, 2024, we adopted ASU 2023-08, which requires us to measure digital assets held at fair value at each reporting date, with fair value gains and losses recognized through net income/(loss). Fair value gains and losses can increase the volatility of our net income, especially if the underlying digital asset market is

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

volatile. Additionally, on January 21, 2025, the SEC launched a crypto task force dedicated to developing a comprehensive and clear regulatory framework for digital assets. However, it remains unclear how the actions or recommendations of the task force will influence the financial accounting rules to which we are subject.

Uncertainties in or changes to regulatory or financial accounting standards could result in the need to change our accounting methods and restate our financial statements, thereby impairing our ability to provide timely and accurate financial information, which could adversely affect our financial statements, result in a loss of investor confidence and more generally impact our business, operating results and financial condition.

***We, our subsidiaries and affiliates are and may continue to be subject to substantial litigation.*** 

We, our subsidiaries and affiliates have in the past been, currently are and may in the future face: allegations; lawsuits; U.S. and foreign regulatory inquiries, actions, requests, audits or investigations; disputes with our agents, affiliates or third-party service providers; and disputes related to false advertising claims. Responding to such proceedings, regardless of their ultimate outcome, can be time-consuming and expensive and divert the attention of senior management or otherwise be disruptive to normal business operations, and may adversely affect our reputation, business, financial condition and the market price of our Class A common stock. Adverse outcomes with respect to allegations, lawsuits, regulatory inquiries, audits or investigations may result in significant settlement costs or judgments, penalties and fines, or require us to modify our investment products or to stop serving certain customers or geographies, any of which could negatively impact our business. The outcome of such proceedings, and the related expenses, may be difficult to predict or estimate until late in the proceedings, which may last a number of years and be costly for us to maintain.

The scope, determination and impact of claims, lawsuits, government and regulatory investigations, enforcement actions, disputes and proceedings to which we are or may in the future be subject cannot be predicted with certainty, and may result in events such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•substantial payments to satisfy judgments, fines, penalties or settlement costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•substantial outside counsel legal fees and costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•additional compliance and license requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•loss or non-renewal of existing licenses or authorizations, or prohibition from or delays in obtaining additional licenses or authorizations, required for our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the imposition of independent monitors or consultants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•criminal sanctions or consent decrees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•orders that restrict our business or prevent us from offering certain investment products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes to our business model and practices, including our advertising and marketing efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•delays or changes to planned investment product launches or development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•damage to our brand and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•loss of productivity and high demand on director, executive officer and other employee time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•termination or removal of certain directors, executive officers and other employees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•barring of directors, executive officers or other employees from participating in our business in whole or in part.

In addition, certain of our subsidiaries are subject to periodic examination by regulatory authorities. If compliance failures or other violations are found during an examination, then a regulatory agency could initiate actions and impose sanctions for violations, including, for example, regulatory agreements, cease-and-desist orders, civil monetary penalties or termination of a license and lead to litigation by investors, any of which could adversely impact us.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Further, if we or any governmental agency believe that we have accepted investments by, or are otherwise holding digital assets of, any person or entity that is acting directly or indirectly in violation of U.S. or non-U.S. economic sanctions, AML laws, rules, regulations, treaties or other restrictions, or on behalf of any suspected terrorist or terrorist organization, suspected drug trafficker or senior foreign political figure suspected in engaging in foreign corruption, we or such governmental agency may freeze the digital assets of such person or entity. We may also be required to report and remit or transfer those digital assets to a governmental agency.

As a company in the financial services industry, we, our subsidiaries and affiliates depend to a significant extent on our relationships with our investors and counterparties, as well as our reputation for integrity and high-caliber professionalism. If an investor is not satisfied with our investment products, a counterparty has a dispute or if there are allegations of improper conduct by private litigants or regulators, whether the ultimate outcome is favorable or unfavorable to us, or if there is negative publicity and press speculation about us, whether or not valid, then our reputation may be harmed and may be more damaging to our businesses than to businesses in other industries.

***Intellectual property rights claims may adversely affect our business and financial condition.***

Our commercial success depends, in part, on our ability to develop and commercialize our investment products without infringing, misappropriating or otherwise violating the intellectual property or proprietary rights of third parties. In recent years, there has been considerable patent, copyright, trademark, domain name, trade secret and other intellectual property development activity in the digital asset industry, as well as litigation, based on allegations of infringement or other violations of intellectual property, including by large financial institutions.

Our use of third-party software and other intellectual property rights may be subject to claims of infringement or misappropriation. The vendors who provide us with technology that we incorporate in our product offerings also could become subject to various infringement claims. We cannot guarantee that our internally developed or acquired technologies and content do not or will not infringe, misappropriate or otherwise violate the intellectual property rights of others.

We are not aware of any intellectual property rights claims that may prevent us from managing our investment products or holding digital assets, and we cannot guarantee our products will not infringe the intellectual property rights of others. Third parties may nonetheless assert intellectual property rights claims relating to the management of our investment products and the mechanics instituted for the investment in, holding of and transfer of digital assets. Any claims that our investment products or processes infringe the intellectual property rights of others, regardless of the merit or resolution of such claims, could cause us to incur significant costs in responding to, defending and resolving such claims, and may divert the efforts and attention of our management. As a result of such intellectual property infringement claims, we could be required or otherwise decide that it is appropriate to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•pay third-party infringement claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•dissolve an investment product or liquidate its assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•discontinue using the processes subject to infringement claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•develop other intellectual property or investment products not subject to infringement claims, which could be time-consuming and costly or may not be possible; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•license the intellectual property from the third party claiming infringement, which license may not be available on commercially reasonable terms.

The occurrence of any of the foregoing could result in unexpected expenses, reduce our revenues and adversely affect our business and financial condition. Additionally, despite our efforts to ensure that our employees, contractors, consultants, vendors and service providers do not use the intellectual property and other proprietary information or know-how of third parties in their work for us, we may in the future be subject to claims that we, our employees or our contractors, consultants, vendors and service providers have inadvertently or otherwise used or disclosed intellectual property, copyrighted materials, trade secrets or other proprietary information of our competitors, former employers or other parties. Litigation may be necessary to defend against these claims. If we fail in defending against such claims, a court could order us to pay substantial damages and prohibit us from using technologies or features that

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

are essential to our solutions, if such technologies or features are found to incorporate or be derived from the trade secrets or other proprietary information of these parties. In addition, we may lose valuable intellectual property rights. Even if we are successful in defending against these claims, such litigation could result in substantial costs and be a distraction to management. In addition, various "non-practicing entities," and other intellectual property rights holders may in the future attempt to assert intellectual property claims against us or seek to monetize the intellectual property rights they own to extract value through licensing or other settlements.

***Any failure to obtain, maintain, protect, defend or enforce our intellectual property rights could adversely affect our business, financial condition and results of operations.***

Our success and our ability to compete depend in part upon our ability to obtain, maintain, protect, defend and enforce our intellectual property rights and technology, including our trademarks and domain names. We rely on trademark laws in the United States and internationally, our terms of service and other contractual provisions to protect our intellectual property rights from infringement, misappropriation or other violations.

Although we have registered trademarks and pending trademark applications, including the marks DROP GOLD®, G™, GRAYSCALE®, GRAYSCALE CRYPTO SECTORSˢᵐ, GRAYSCALE CRYPTO MINIS™ and GRAYSCALE INVESTMENTS®, and other intellectual property rights that are registered in the U.S., our ability to enforce such intellectual property rights is subject to general litigation risks. Competitors may adopt service names similar to ours, thereby harming our ability to build brand identity and possibly leading to customer confusion or brand dilution. Additionally, unauthorized third parties may attempt to misuse our trademarks, trade names, domain names or brand identity, including through impersonation schemes or fraudulent activities in certain jurisdictions. While we take steps to address such misuse, our ability to prevent or mitigate these activities may be limited, and such fraudulent actions could harm our business, reputation or customer relationships. Furthermore, our trademarks may be opposed, contested, circumvented or found to be unenforceable, weak or invalid, and we may not be able to prevent third parties from infringing or otherwise violating them or using similar marks in a manner that causes confusion or dilutes the value or strength of our brand.

If we seek to enforce our rights, then we could be subject to litigation, including challenges to our registered intellectual property rights and claims that our intellectual property rights are invalid or are otherwise not enforceable in jurisdictions where our intellectual property rights are not registered. The steps we take to obtain, maintain, protect, defend and enforce our trademarks may be insufficient to effectively prevent third parties from infringing, misappropriating or otherwise violating our intellectual property rights, and there can be no assurance that our intellectual property rights will be sufficient to protect against unauthorized parties offering investment products that are substantially similar to ours.

In order to protect our intellectual property and other proprietary rights, we may be required to expend significant resources to apply for, maintain, monitor and protect these rights. We will not be able to protect our rights if we do not detect their unauthorized use. We may also fail to maintain or be unable to obtain adequate protections for certain of our rights in the United States and abroad. Our rights may not receive the same degree of protection abroad that they would in the United States because of differences in laws, and effective intellectual property protection and enforcement mechanisms may not be available in those jurisdictions, which could make it difficult for us to stop the infringement, misappropriation, dilution or other violation of our intellectual property or marketing of competing products or solutions in violation of our intellectual property rights generally. We may need to expend additional resources to defend our intellectual property in such jurisdictions.

Legal standards relating to the validity, enforceability and scope of protection of intellectual property rights are uncertain and any changes in, or unexpected interpretations of, intellectual property laws may compromise our ability to enforce our intellectual property rights. If we cannot successfully enforce our rights, then we may lose the value of our brand and reputation and our competitive position or be exposed to significant liabilities or be required to seek licenses that may not be available on commercially acceptable terms, if at all.

Any claim or litigation alleging that we have infringed or otherwise violated intellectual property or other rights of third parties, with or without merit, and whether or not settled out of court or determined in our favor, could be time-consuming and costly to address and resolve, and could divert the time and attention of our management and

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

technical personnel. The outcome of any litigation is inherently uncertain, and there can be no assurances that favorable final outcomes will be obtained in all cases. In addition, third parties may seek, and we may become subject to, preliminary or provisional rulings in the course of any such litigation, including potential preliminary injunctions requiring us to cease some or all of our operations. We may decide to settle such lawsuits and disputes on terms that are unfavorable to us. Similarly, if any litigation to which we are a party is resolved adversely, we may be subject to an unfavorable judgment that may not be reversed upon appeal, including being subject to a permanent injunction and being required to pay substantial monetary damages, including treble damages and attorneys' fees, if we are found to have willfully infringed a party's intellectual property rights. We may decide to settle such lawsuits and disputes on terms that are unfavorable to us. The terms of such a settlement or judgment may require us to cease some or all of our operations, pay substantial amounts to the other party or admit liability. Moreover, as part of any settlement or other compromise to avoid complex, protracted litigation, we may agree not to pursue future claims against a third party, including for claims related to alleged infringement of our intellectual property rights. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information could be compromised by disclosure during any litigation regarding the enforcement of intellectual property rights, which may diminish the value of our brand and other intangible assets and allow competitors to more effectively mimic our products and solutions.

***If we fail to comply with our obligations under license agreements with third parties or are unable to license rights on reasonable terms, then we may be required to pay damages and could potentially lose license rights that are critical to our business.***

We license certain intellectual property and technology from third parties that is important to our business, such as our license agreement with CoinDesk Indices, Inc., pursuant to which we license the use of their digital asset price indices as the index prices for our investment products, and we may enter into additional license agreements in the future that provide us with licenses to valuable intellectual property or technology. If we fail to comply with any of the obligations under our existing license agreements, then we may be required to pay damages and the licensor may have the right to terminate the license. Such termination would cause us to lose valuable rights, and could prevent us from operating and administering our investment products or require us to dissolve an investment product and liquidate its assets. Our business would suffer if any current or future licenses terminate, the licensors fail to abide by the terms of the license, the licensed intellectual property rights are found to be invalid or unenforceable or we are unable to enter into necessary licenses on acceptable terms. Moreover, our licensors may own or control intellectual property that has not been licensed to us, and as a result, we may be subject to claims, regardless of their merit, that we are infringing or otherwise violating the licensor's rights.

In the future, we may identify additional third-party intellectual property we may need to license to operate our business. However, such licenses may not be available on acceptable terms or at all. The licensing or acquisition of third-party intellectual property rights is a competitive area, and several more established companies may pursue strategies to license or acquire third-party intellectual property rights that we may consider attractive or necessary. In addition, companies that perceive us to be a competitor may be unwilling to assign or license rights to us. Even if such licenses are available, we may be required to pay the licensor substantial royalties, which could result in potentially higher expenses. In addition, such licenses may be nonexclusive, which could give our competitors access to the same intellectual property licensed to us. Any of the foregoing could have a material adverse effect on our competitive position, business, financial condition and results of operations.

***Cybersecurity incidents and other issues related to our information systems, technology and data may materially adversely affect us.***

Cybersecurity incidents and cyberattacks have been occurring globally at more frequent and severe levels and will likely continue to increase in frequency and severity in the future. The digital asset industry is a particular target for cyberattacks. Cybersecurity incidents may occur through intentional or unintentional acts by individuals or groups having authorized or unauthorized access to our systems, custody accounts or our counterparties' information, which may include confidential information. These individuals or groups include employees and third-party service providers, as well as hackers. The information and technology systems used by us and our service providers and other third parties, as well as relevant digital asset networks, are vulnerable to damage or interruption from, among other things: hacking, ransomware, malware and other computer viruses; denial of service attacks; network failures;

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

computer and telecommunication failures; phishing attacks; infiltration by unauthorized persons; security breaches; usage errors by their respective professionals; power outages; terrorism; and catastrophic events such as fires, tornadoes, floods, hurricanes and earthquakes. Additionally, there is a risk that we may experience cybersecurity-related incidents as a result of our employees, service providers and other third parties working remotely on less secure systems and environments.

While we take efforts to protect our systems, custody accounts and data, including establishing internal processes and implementing technological measures designed to provide multiple layers of security, and contract with third-party service providers to take similar steps, we have experienced cybersecurity breaches in the past, and there can be no assurance that our safety and security measures (and those of our third-party service providers) will prevent damage to, or interruption or breach of, our systems, custody accounts, data (including personal data) and operations. We have recently taken steps to expand and enhance our cybersecurity controls and practices and, as cybersecurity-related threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities. Nevertheless, it is possible we could suffer an impact or disruption that could materially adversely affect us.

In particular, the digital assets held by us and our investment products may be appealing targets to hackers or malware distributors seeking to destroy, damage or steal our digital assets and will only become more appealing as our digital assets grow. To the extent that we or the Custodians are unable to identify and mitigate or stop new security threats or otherwise adapt to technological changes in the digital asset industry, our digital assets may be subject to theft, loss, destruction or other attack. For more information on the risks related to the custody of digital assets held by us and our investment products, see "—Risk Factors Related to Our Business—We rely on Coinbase Custody, Anchorage and BitGo to provide us and our investment products with critical custody services for the digital assets for which we offer investment products. The failure of a Custodian to adequately safeguard these digital assets, or any disruptions to its services, could materially adversely affect our business and harm investors in our investment products."

We believe that the security procedures we have in place, including, but not limited to: offline storage, or cold storage, for a substantial portion of our digital assets; multiple encrypted private key "shards"; usernames; and passwords and two-step verification are reasonably designed to safeguard our digital assets. Nevertheless, these security procedures cannot guarantee the prevention of any loss due to a security breach, software defect or catastrophic event. Electronic transmissions of data can be subject to attack, interception, loss or corruption. In addition, computer viruses and malware can be distributed and spread rapidly over the internet and could infiltrate our systems or those of our investment vehicles or third-party service providers. Infiltration of our systems or those of our investment vehicles or third-party service providers could in the future lead to disruptions in systems, accidental or unauthorized access to or disclosure, loss, destruction, disablement or encryption of, use or misuse of or modification of confidential, sensitive or otherwise protected information (including personal data) and the corruption of data. Additionally, because a portion of our digital assets from time to time will be held in hot storage, such digital assets will be more vulnerable to a potential hack or other cyberattack that could lead to a loss of investment product assets.

Our security procedures and operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee, a Custodian or otherwise, and as a result, an unauthorized party may obtain access to a custody account, the relevant private keys (and therefore digital assets) or other data. Additionally, outside parties may attempt to fraudulently induce employees of ours or the Custodians to disclose sensitive information in order to gain access to our infrastructure. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently, or may be designed to remain dormant until a predetermined event and often are not recognized until launched against a target, the Custodians and we may be unable to anticipate these techniques or implement adequate preventative measures. Moreover, the Custodians will not be liable for any claims or losses arising out of or relating to the acts and omissions of any unauthorized third parties, except to the extent such losses are caused by the Custodians' negligence, fraud or willful misconduct.

An actual or perceived breach of a custody account could harm our operations, result in loss of digital assets, damage our reputation and negatively affect the market perception of our investment products, all of which could adversely affect our results of operations. We may also be required to dissolve a particular investment product and liquidate its assets.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Moreover, there could be public announcements regarding any cybersecurity-related incidents and any steps we take to respond to or remediate such incidents, and if analysts or investors perceive these announcements to be negative, it could, among other things, have a substantial adverse effect on the price of our Class A common stock. Further, any publicized security problems affecting our business or those of third parties with whom we are affiliated or otherwise conduct business may discourage investors from doing business with us, which could have a material and adverse effect on our business, financial condition and results of operations.

It is difficult or impossible to defend against every risk being posed by changing technologies, as well as criminals' intent to commit cybercrime, and these efforts may be unsuccessful in anticipating, preventing, detecting or stopping attacks or reacting in a timely manner. As technological change occurs, security threats will likely evolve, and previously unknown threats may emerge. The increasing sophistication and resources of cybercriminals and other non-state threat actors and increased actions by nation-state actors make it difficult to keep up with new threats and could result in a breach of security. Such threats may see their frequency increased, and effectiveness enhanced, by the use of artificial intelligence. Furthermore, we may become a greater target of security threats as our size and reputation increases. If we are unable to identify and mitigate or stop new security threats or we are unable to adapt to technological changes necessary to secure and safeguard our systems, digital assets or data, then our data and our digital assets or those of our investment products may be subject to theft, loss, destruction or other attack, which could result in a loss of such data or digital assets or materially adversely affect our business, financial condition and results of operations. Additionally, we cannot guarantee that our insurance coverage would be sufficient to cover any such losses.

The security of the information and technology systems used by us and our service providers may continue to be subjected to cybersecurity threats that could result in material failures or disruptions in our business. If these systems are compromised, become inoperable for extended periods of time or cease to function properly, then we or a service provider may have to make a significant investment to fix or replace them. The failure of these systems, or any disaster recovery plans we develop, could cause significant interruptions in operations and result in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information relating to stockholders (and the beneficial owners of stockholders), as well as the security of our digital assets. Such failure could harm our reputation, subject us to legal claims and otherwise materially adversely affect our results of operations.

To the extent the operation of our systems relies on our third-party service providers, through either a connection to, or an integration with, such third parties' systems, the risk of cybersecurity attacks and loss, corruption, or unauthorized access to or publication of our information or the confidential information and/or personal data of investment vehicles and employees may increase. Third-party risks may include insufficient security measures, data location uncertainty, and the possibility of storing data in jurisdictions where laws or security measures may be inadequate. Our ability to monitor our third-party service providers' data security practices may be limited. Although we generally have agreements relating to cybersecurity and data privacy in place with our third-party service providers, such third-party service providers may not comply with such cybersecurity and data security requirements. In addition, we cannot guarantee that such agreements will prevent the accidental or unauthorized access to or disclosure, loss, destruction, disablement or encryption of, use or misuse of or modification of data (including personal data) or enable us to obtain adequate or any reimbursement from our third-party service providers in the event we should suffer any such incidents. Due to applicable laws and regulations or contractual obligations, we may be held responsible for any information security failure or cybersecurity attack attributed to our third-party service providers as they relate to the information we share with them. A vulnerability in a third-party service provider's software or systems, a failure of our third-party service providers' safeguards, policies or procedures, or a breach of a third-party service provider's software or systems could result in the compromise of the confidentiality, integrity or availability of our systems or the data housed in solution provided by our third-party service providers, which could materially adversely affect our business, financial condition and results of operations.

***Our business depends on our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation, security and integrity of our information technology and business systems.***

Our business depends on maintaining effective information technology systems as well as the integrity and timeliness of the data we use to operate our business. It is possible that hardware failures or errors in our systems could result in data loss or corruption, or cause the information that we collect to be incomplete, or contain inaccuracies

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

that investors regard as significant. If our data were found to be inaccurate or unreliable, or became inaccessible, whether due to failures, errors or other reasons, or if we, or any of our third-party service providers, especially the software systems of our index providers and the Custodians, were to fail to effectively maintain such information systems and data integrity, then we could experience operational disruptions that may impact our investment products, individuals and service providers and hinder our ability to offer our investment products, retain and attract investors, report financial results timely and accurately and maintain regulatory compliance, among other things.

Our success is dependent, in large part, on maintaining the effectiveness of existing technology systems and continuing to deliver and enhance technology systems that support our business processes in a cost-efficient and resource-efficient manner and enable us to analyze and manage data in a comprehensive manner. Increasing and shifting regulatory and legislative requirements are likely to place additional demands on our information technology infrastructure that could have a direct impact on resources available for other projects tied to our strategic initiatives.

Also, in the event of damage or interruption, our insurance policies may not adequately compensate us for any losses and liabilities arising from security breaches, cyberattacks, and other types of unlawful activity, or any resulting disruptions from such events. System failures or outages could compromise our ability to perform these functions in a timely manner, which could harm our ability to conduct business or delay our financial reporting. Such failures could adversely affect our results of operations and financial condition. In addition, certain of our third-party service providers are required to notify us if they experience a security breach or unauthorized disclosure of certain personal information, or, in some cases, confidential data or information of ours or service providers, and their failure to timely notify us of such a breach or disclosure may cause us to incur significant costs or otherwise harm our business.

Additionally, any actual or perceived breach or cybersecurity attack directed at financial institutions, trading exchanges or similar companies, whether or not we are directly impacted, could lead to a general loss of investor confidence in the security of internet transactions or confidential personal information, which could negatively impact us, including the market perception of the effectiveness of our security measures and technology infrastructure. As a result, our costs and the resources we devote to protecting against these advanced threats and their consequences may continue to increase over time.

Despite our implementation of a variety of security measures, our information technology systems could be subject to physical or electronic compromises and similar disruptions from unauthorized tampering, or to weather-related disruptions where our systems are hosted. Prolonged interruption in the availability, or reduction in the speed or other functionality, of our systems and investment products could materially harm our reputation and business. Frequent or persistent interruptions in accessing our systems and services could cause investors to believe that our systems and services are unreliable, leading them to switch to our competitors, and could permanently harm our reputation and business.

We may need to develop new systems to meet current market standards and keep pace with continuing changes in information processing technology and evolving industry and regulatory standards. Further, system development projects are long-term in nature, may be more costly than expected to complete and may not deliver the expected benefits upon completion. In addition, we may not be able to adequately assess the functionality and data integrity and security impacts of new or significantly changed products, services, business processes or infrastructure that we use. Our failure to effectively implement improvements to and properly maintain the uninterrupted operation and integrity of our information technology and other business systems, as well as any write-downs in connection with the obsolescence of our technology, could materially adversely affect our business, financial condition and results of operations.

***We are incorporating AI technologies into some of our products and processes. These technologies may present business, compliance, and reputational risks.***

We currently use, and expect to continue to use, machine learning ("ML") and artificial intelligence ("AI"), both proprietary and third-party technologies, to improve our products and processes in certain circumstances, such as to increase the efficiency of research and development and information technology functionality, and have plans to expand our use of AI in the future. Our research and development of such technology remains ongoing, and may be costly and yield inefficient results. As with many new and emerging technologies, AI presents numerous risks and

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

challenges that could adversely affect our business. If we fail to keep pace with rapidly evolving AI technological developments, especially in the financial technology sector, our competitive position and business results may suffer.

At the same time, use of AI has recently become the source of significant media attention and political debate. Ineffective or inadequate AI development or deployment practices by us or others could result in incidents that impair the acceptance of AI solutions or cause harm to individuals, customers or society, or result in our platform and services not working as intended. Human review of certain outputs may be required. We may license AI technologies from third parties that use models trained on data that could potentially violate intellectual property, privacy, or other third-party rights or violate law. These AI technologies may also produce results or generate content that is inaccurate or misleading or that cannot be explained by data. These AI technologies may incorporate data from third-party sources, including information they input into the AI tools, which may expose us to risks associated with data rights and protection.

Further, AI and ML models require training on training datasets prior to production use, and in some instances, AI algorithms or training methodologies that may be flawed. Training on incomplete, inadequate, inaccurate, biased, or otherwise poor quality data may result in models failing to provide acceptable results. The introduction of AI technologies, particularly generative AI, that have unintended consequences, unintended usage or customization by our investment vehicles, are contrary to responsible AI principles, or are otherwise controversial because of their impact on human rights, privacy, employment, or other social, economic, or political issues, may cause us to experience brand or reputational harm, adversely affecting our business and consolidated financial statements, including due to enhanced governmental or regulatory scrutiny, litigation, compliance issues, ethical concerns, confidentiality or security risks, as well as other factors that could materially adversely affect our business, financial condition and results of operations.

***The regulatory framework governing the use of AI and ML technology is rapidly evolving, and we cannot predict how future legislation and regulation will impact our ability to offer products or services that we develop which leverage AI and ML technology.***

The regulatory framework for AI and ML technology is rapidly evolving, and many regulatory bodies and federal, state, and foreign governments have globally introduced or are currently considering new laws and regulations relating to such technology. As a result, implementation standards and enforcement practices are also likely to remain uncertain for the foreseeable future, and we cannot determine the impact future laws, regulations, or standards may have on our business, or how best to respond to them in future.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

The Trump administration may continue to rescind federal orders and/or administrative policies relating to AI and ML technology, or may implement new executive orders and/or other rulemaking relating to AI and ML technology in the future. Any such changes at the federal level could require us to expend significant resources to modify our products, services or operations to ensure compliance or remain competitive. U.S. legislation related to AI and ML technologies has been introduced at the federal level and is advancing at the state level.

In Europe, the EU AI Act established broad obligations for the development and use of AI-based technologies in the European Economic Area based on their potential risks and level of impact. The EU AI Act includes requirements around transparency, conformity assessments and monitoring, risk assessments, human oversight, security, accuracy, general purpose AI and foundation models.

Any failure or perceived failure by us to comply with AI technology-related laws, rules and regulations could result in proceedings or actions against us by individuals, consumer rights groups, government agencies or others. We could incur significant costs in investigating and defending such claims and, if found liable, pay significant damages or fines or be required to make changes to our business. Further, these proceedings and any subsequent adverse outcomes may subject us to significant negative publicity and an erosion of trust. If any of these events were to occur, our business, financial condition and results of operations could be materially adversely affected.

Moreover, it is possible that additional laws and regulations will be adopted in the United States and foreign jurisdictions, or that existing laws and regulations may be interpreted in ways that would affect the way in which we use AI and ML technology. We may need to expend resources to modify our products or services or incur new research and development costs in order to comply with new laws or regulations. Further, the cost of compliance could be significant and may increase our operating expenses, which could materially adversely affect our business, financial condition and results of operations. Changes to existing regulations, their interpretation or implementation or new regulations could impede our use of AI and ML technology and also may increase the burden and cost of research and development in this area.

***We are subject to stringent laws and regulations regarding data privacy and cybersecurity in the United States. Many of these laws and regulations are subject to change and reinterpretation and could result in claims, changes to our business practices, monetary penalties, increased cost of operations or other harm to our business.*** 

We and our third-party service providers are subject to a variety of federal, state and local laws, directives, rules, policies, industry standards and regulations, as well as contractual obligations, relating to data privacy and security. This regulatory framework is continuously evolving, and as a result, interpretation and implementation standards and enforcement practices are likely to remain uncertain, and may require us to incur additional costs and restrict our business operations, as well as change how we use, collect, store, transfer or otherwise process certain types of data and to implement new processes.

In the United States, federal law restricts certain collection, processing, storage, use and disclosure of personal data, requires notice to individuals of privacy practices and provides individuals with certain rights to prevent the use and disclosure of certain nonpublic or otherwise legally protected information. These rules also impose requirements for the safeguarding and proper destruction of personal data through the issuance of data security standards or guidelines. The U.S. government, including Congress, the Federal Trade Commission ("FTC"), the CFPB and the Department of Commerce, has announced that it is reviewing the need for greater regulation for the collection, use and other processing of information concerning consumer behavior on the internet, including regulation aimed at restricting certain targeted advertising practices. There is also a risk of enforcement actions in response to rules and regulations promulgated under the authority of federal agencies, state attorneys general, legislatures and consumer protection agencies. In addition, privacy advocates and industry groups have proposed and may propose new and different self-regulatory standards that either legally or contractually apply to us. If we fail to follow these standards, even if no personal data is compromised, then we may incur significant fines or experience a significant increase in costs.

Also, many states have adopted legislation that regulates how businesses operate online, including measures relating to privacy, data security, data breaches and the protection of sensitive and personal information, requiring

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

businesses to provide notice to customers whose personally identifiable information has been disclosed as a result of a data breach. The laws are not consistent, as certain laws may be more stringent or broader in scope, or offer greater individual rights, with respect to sensitive and personal information than federal, international or other state laws, and such laws may differ from each other, which may complicate compliance efforts that may become costly in the event of a widespread data breach. Failure to comply with, for example, the California Consumer Privacy Act, as amended by the California Privacy Rights Act of 2020 (collectively, the "CCPA"), the California Online Privacy Protection Act ("CalOPPA") or any other similar state or federal law or any future changes in laws or regulations relating to privacy, data protection and information security (particularly any new or modified laws or regulations that require enhanced protection of certain types of data or new obligations with regard to data retention, transfer or disclosure), can result in significant liability, including civil penalties and statutory damages as well as a private right of action for certain breaches. The effects of such laws and/or regulations may require us to modify our data processing practices and policies and could greatly increase our expenses, require significant changes to our operations or even prevent us from providing certain investment products in jurisdictions in which we currently operate and in which we may operate in the future, or require us to incur potential liability in an effort to comply with such legislation.

In addition, the New York State Department of Financial Services ("NYDFS") issued Cybersecurity Requirements for Financial Services Companies, which took effect in 2017, and which require banks, insurance companies and other financial services institutions regulated by the NYDFS to establish and maintain a cybersecurity program designed to protect consumers and ensure the safety and soundness of New York State's financial services industry. The cybersecurity regulation adds specific requirements for these institutions' cybersecurity compliance programs and imposes an obligation to conduct ongoing, comprehensive risk assessments. On an annual basis, each institution is required to submit a certification of compliance with these requirements. We may in the future become subject to such NYDFS regulations and requirements, which could subject us to additional investigations and examinations of our compliance programs.

Further, the publication of our privacy policies and other statements that provide promises and assurances about data privacy and security can subject us to potential government or legal action if they are found to be deceptive, unfair or misrepresentative of our actual practices. Any failure or perceived failure by us or our third-party service providers to comply with our posted privacy policies or with any applicable federal, state or similar foreign laws, rules, regulations, industry standards, policies, certifications or orders relating to data privacy and security, or any compromise of security that results in theft, unauthorized access, acquisition, use, disclosure or misappropriation of personal data, could result in significant awards, fines, civil or criminal penalties or judgments, proceedings or litigation by governmental agencies or investors, including class action privacy litigation in certain jurisdictions and negative publicity and reputational harm, any of which could have an adverse effect on our reputation, business, financial condition and results of operations.

Evolving compliance and operational requirements impose significant costs, such as costs related to organizational changes, implementing additional protection technologies, training employees and engaging consultants, which are likely to increase over time, and may require us to modify or restrict our data processing practices and policies, distract management or divert resources from other initiatives and projects.

***We may face particular privacy, data security and data protection risks in connection with the GDPR and other non-U.S. data protection regulations.***

The fact that some of our investors and users of our website are residents of the U.K. and the European Union subjects us or may subject us to the E.U. General Data Protection Regulation ("GDPR"). The GDPR regulates the collection, control, sharing, disclosure, use and other processing of personal data and imposes stringent data protection requirements with significant penalties, and the risk of civil litigation, for noncompliance. Among other requirements, the GDPR regulates transfers of personal data subject to the GDPR to third countries that have not been found to provide adequate protection to such personal data, including the United States. We are also subject to the U.K. General Data Protection Regulation ("U.K. GDPR") (i.e., a version of the GDPR as implemented into U.K. law), exposing us to two parallel regimes, each of which authorizes similar fines and other potentially divergent enforcement actions for certain violations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

If we are unable to implement a valid mechanism for personal data transfers from Europe and the U.K., then we will face increased exposure to regulatory actions, substantial fines and injunctions against processing personal data from Europe and the U.K. Inability to export personal data may also limit our ability to collaborate with third-party service providers outside of Europe and the U.K. or cause us to change the geographical location or segregation of our relevant systems and operations. Further, the current existing framework regarding personal data transfers from Europe and the U.K. is uncertain, and such uncertainty may increase our costs and our ability to efficiently process personal data imported from Europe and the U.K. Additionally, other countries outside of Europe and the U.K. have enacted or are considering enacting similar cross-border data transfer restrictions and laws requiring local data residency, which could increase the cost and complexity of delivering our investment products and operating our business. The type of challenges we face in Europe and the U.K. will likely also arise in other jurisdictions that adopt regulatory frameworks of equivalent complexity. While we have taken steps to mitigate the impact on us with respect to transfers of data, such as implementing standard contractual clauses, the efficacy and longevity of these transfer mechanisms remain uncertain.

Other countries have also passed, or are considering passing, laws requiring local data residency or restricting the international transfer of data. These changes may lead to additional costs and increase our overall risk exposure. Any inability to adequately address data privacy or security-related concerns, even if unfounded, or to comply with applicable laws, regulations, standards and other obligations relating to data privacy and security, could result in litigation, breach notification obligations, regulatory or administrative sanctions, additional cost and liability to us, harm to our reputation and brand, and damage to our relationships with investors and users of our website and have an adverse effect on our business, financial condition and results of operations.

***Any theft, loss, damage to or other misappropriation or inadvertent disclosure of, or inappropriate access to, the data that we possess could have an adverse impact on our business and subject us to regulatory actions and litigation.***

Our business and relationships with third parties are dependent on our ability to maintain the confidentiality of sensitive information (including data about users of our website and our employees). Although we are not aware of any material incidents to date, unauthorized access, or failure of our controls with respect to granting access, to our systems, or failure of our other data loss prevention controls, have in the past occurred and may occur in the future, resulting in theft, loss, damage to or other misappropriation of such information. Our employees or third-party services providers may in the future, inadvertently or deliberately, disclose confidential information and our systems or systems of our third-party service providers may in the future be inadvertently or deliberately exploited, resulting in disclosure of confidential information.

Any theft, loss, damage to or other misappropriation or inadvertent disclosure of confidential information could have a material adverse impact on our competitive position, our relationships with our investors and third-party service providers and reputation and could subject us to regulatory inquiries, enforcement and fines, civil litigation and possible financial liability or costs. To the extent any of these events involve personal information, the risks of enhanced regulatory scrutiny and the potential financial liabilities are exacerbated, particularly under data protection regulations such as the GDPR.

## **Risk Factors Related to Our Organizational Structure** 
***We are a holding company and our principal asset after completion of this offering will be our % ownership interest in Grayscale Operating, LLC and we are accordingly dependent upon distributions from Grayscale Operating, LLC to pay dividends, if any, and taxes, make payments under the Tax Receivable Agreement and pay other expenses.***

We are a holding company and, upon completion of the Reorganization Transactions and this offering, our principal asset will be % of the outstanding LLC Units. See "Organizational Structure." We have no independent means of generating income from operations. Grayscale Operating, LLC is, and will continue to be, treated as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to U.S. federal income tax. Instead, the taxable income of Grayscale Operating, LLC will be allocated to holders of LLC Units, including us. Accordingly, we will incur income taxes on our allocable share of any net taxable income of Grayscale Operating,

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

LLC. We will also incur expenses related to our operations and will have obligations to make payments under the Tax Receivable Agreement. As the sole managing member of Grayscale Operating, LLC, we intend to cause Grayscale Operating, LLC to make distributions to the holders of LLC Units and us, in amounts sufficient to (i) generally cover all applicable taxes payable by us and the holders of LLC Units, (ii) allow us to make any payments required under the Tax Receivable Agreement, (iii) fund dividends to our stockholders in accordance with our dividend policy, to the extent that our board of directors declares such dividends, and (iv) pay any other expenses we may incur.

Deterioration in the financial conditions, earnings or cash flow of Grayscale Operating, LLC and its subsidiaries for any reason could limit or impair their ability to pay such distributions. Additionally, to the extent that we need funds and Grayscale Operating, LLC is restricted from making such distributions to us under applicable law or regulation or contractual agreements, we may not be able to obtain such funds on terms acceptable to us, or at all, and, as a result, could suffer a material adverse effect on our liquidity and financial condition.

***In certain circumstances, Grayscale Operating, LLC will be required to make distributions to us and the other holders of LLC Units, and the distributions that Grayscale Operating, LLC will be required to make may be substantial.***

Under the Amended LLC Agreement, Grayscale Operating, LLC will generally be required from time to time to make pro rata distributions in cash to us and the other holders of LLC Units at certain assumed tax rates in amounts that are intended to be sufficient to cover the taxes on our and the other LLC Unit holders' respective allocable shares of the taxable income of Grayscale Operating, LLC. As a result of (i) potential differences in the amount of net taxable income allocable to us and the other LLC Unit holders and (ii) the favorable tax benefits that we anticipate receiving from (a) acquisitions of interests in Grayscale Operating, LLC in connection with acquisitions by Grayscale Holdings of LLC Units from the Pre-IPO LLC Members in connection with this offering and future taxable redemptions or exchanges of LLC Units for shares of our Class A common stock or cash and (b) payments under the Tax Receivable Agreement, we expect that these tax distributions will be in amounts that exceed our tax liabilities and obligations to make payments under the Tax Receivable Agreement. Our board of directors will determine the appropriate uses for any excess cash so accumulated, which may include, among other uses, dividends, repurchases of our Class A common stock and the payment of other expenses. We will have no obligation to distribute such cash (or other available cash other than any declared dividend) to our stockholders. No adjustments to the redemption or exchange ratio of LLC Units for shares of Class A common stock will be made as a result of either (i) any cash distribution by us or (ii) any cash that we retain and do not distribute to our stockholders. To the extent that we do not distribute such excess cash as dividends on our Class A common stock and instead, for example, hold such cash balances or lend them to Grayscale Operating, LLC, holders of LLC Units would benefit from any value attributable to such cash balances as a result of their ownership of Class A common stock following a redemption or exchange of their LLC Units. See "Certain Relationships and Related Party Transactions—Amended LLC Agreement."

***We are controlled by DCG whose interests in our business may be different than yours, and certain statutory provisions afforded to stockholders are not applicable to us.***

DCG will control approximately % of the combined voting power of our common stock (or % if the underwriters exercise their option to purchase additional shares of Class A common stock in full) after the completion of this offering and the application of the net proceeds from this offering. Further, pursuant to the Stockholders Agreement we and the Pre-IPO LLC Members will enter into, the Pre-IPO LLC Members, which are controlled by DCG, may approve or disapprove certain matters requiring approval by our stockholders. See "Certain Relationships and Related Party Transactions—Stockholders Agreement."

This concentration of ownership and voting power may also entrench our management and our board or delay, defer or even prevent an acquisition by a third party or other change of control of our company, which could deprive you of an opportunity to receive a premium for your shares of Class A common stock and may make some transactions more difficult or impossible without the support of DCG, even if such events are in the best interests of minority stockholders. Furthermore, this concentration of voting power with DCG may have a negative impact on the price of our Class A common stock.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

We cannot predict whether our dual-class structure, combined with the concentrated control of DCG, will result in a lower or more volatile market price of our Class A common stock or in adverse publicity or other adverse consequences. Certain stock index providers exclude or limit the ability of companies with multi-class share structures from being added to certain of their indices. Accordingly, the dual-class structure of our common stock would make us ineligible for inclusion in indices with such restrictions. Given the sustained flow of investment funds into passive strategies that seek to track certain indices, exclusion from stock indices would likely preclude investment by many of these funds and could make our Class A common stock less attractive to other investors. In addition, several stockholder advisory firms and large institutional investors have been critical of the use of multi-class structures. Such stockholder advisory firms may publish negative commentary about our corporate governance practices or our capital structure, which may dissuade large institutional investors from purchasing shares of our Class A common stock. As a result, the market price of our Class A common stock could be materially adversely affected.

DCG's interests may not be fully aligned with yours, or ours, which could lead to actions that are not in your, or our, best interests. Because DCG, via its ownership interests in the Pre-IPO LLC Members, holds a majority of its economic interests in our business through Grayscale Operating, LLC rather than through Grayscale Holdings, it may have conflicting interests with holders of shares of our Class A common stock. For example, DCG may have a different tax position from us, which could influence its decisions regarding whether and when we should dispose of assets or incur new or refinance existing indebtedness, especially in light of the existence of the Tax Receivable Agreement that we will enter into in connection with this offering, and whether and when we should undergo certain changes of control for purposes of the Tax Receivable Agreement or terminate the Tax Receivable Agreement. In addition, the structuring of future transactions may take into consideration these tax or other considerations even where no similar benefit would accrue to us. Pursuant to the Bipartisan Budget Act of 2015, if the IRS makes audit adjustments to Grayscale Operating, LLC's federal income tax returns, it may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit adjustment directly from Grayscale Operating, LLC. If, as a result of any such audit adjustment, Grayscale Operating, LLC is required to make payments of taxes, penalties and interest, Grayscale Operating, LLC's cash available for distributions to us may be substantially reduced. See "Certain Relationships and Related Party Transactions—Tax Receivable Agreement."

In addition, DCG's significant ownership in us and resulting ability to effectively control us may discourage someone from making a significant equity investment in us, or could discourage transactions involving a change in control, including transactions in which you as a holder of shares of our Class A common stock might otherwise receive a premium for your shares over the then-current market price. Further, DCG is an active investor in other digital asset projects and growth companies, and may make decisions that favor other projects in which it has invested.

We have opted out of Section 203 of the General Corporation Law of the State of Delaware (the "DGCL"), which prohibits a publicly held Delaware corporation from engaging in a business combination transaction with an interested stockholder for a period of three years after the interested stockholder became such unless the transaction fits within an applicable exemption, such as board approval of the business combination or the transaction which resulted in such stockholder becoming an interested stockholder. Therefore, after the -day lock-up period expires, the Pre-IPO LLC Members will be able to transfer control of us to a third party by transferring their shares of our common stock (subject to certain restrictions and limitations), which would not require the approval of our board of directors or our other stockholders.

***The doctrine of "corporate opportunity" will have limited application to the Pre-IPO LLC Members, our directors and officers and their respective affiliates.***

Our certificate of incorporation and Stockholders Agreement will provide that, to the fullest extent permitted by law, the doctrine of "corporate opportunity" under Delaware law will only apply against the Pre-IPO LLC Members, our directors and officers and their respective affiliates for competing activities related to the same or similar core lines of business in which we or our affiliates now engage in or propose to engage in. This doctrine will not apply to any business activity other than those activities. See "Certain Relationships and Related Party Transactions—Amended LLC Agreement." Furthermore, the Pre-IPO LLC Members have business relationships outside of our business.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **Risk Factors Related to Ownership of Our Class A Common Stock and This Offering** 
***The market price of our Class A common stock may be volatile or may decline significantly or suddenly regardless of our operating performance. You may not be able to sell your shares at or above the initial public offering price and lose all or part of your investment.*** 

The initial public offering price for our Class A common stock was determined through negotiations between the underwriters and us, and it may vary from the market price of our Class A common stock following this offering. If you purchase shares of our Class A common stock in this offering, then you may not be able to sell those shares at or above the initial public offering price. The market price of our Class A common stock may fluctuate or decline significantly in response to numerous factors, many of which are beyond our control, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the realization of any of the risk factors described herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•actual or anticipated fluctuations in our quarterly financial and other results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•variations between our actual results of operations and the expectations of analysts, investors and the financial community;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any forward-looking financial or operating information we may provide to the public or analysts, any changes in this information or our failure to meet expectations based on this information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•actions of analysts who initiate or maintain coverage of us, changes in financial estimates by analysts who follow us or our failure to meet these estimates or the expectations of investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any significant changes in our management or board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•investors' or analysts' views of our stock structure and the significant voting control of DCG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•additional shares of our Class A common stock being sold into the market by us or DCG, or the anticipation of such sales, including sales to satisfy tax obligations related to equity awards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•announcements by us or our competitors of significant investment products, acquisitions, strategic partnerships, joint ventures or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•levels of, and investors' expectations with respect to, interest rates, rates of inflation of fiat currencies or digital assets and rates of return on digital asset trading platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in operating performance and stock market valuations of participants in the digital asset industry, including our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increased competition from other asset managers offering digital asset investment products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•rumors and market speculation involving us or other participants in the digital asset industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fluctuations in the prices and volumes of digital assets, as well as in the stock market generally, including as a result of trends in the economy as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•investor preferences and sentiment toward digital assets, particularly Bitcoin and Ethereum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the adoption of digital assets as a medium of exchange, utility, store of value, consumptive asset, security instrument or other financial asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our failure to continue to innovate and introduce successful new investment products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the liquidity of digital asset markets and any increases or decreases in trading volumes on digital asset markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•interruptions in service from, or closures or failures of, major digital asset trading platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•forks, airdrops and similar events with respect to digital assets held by one or more of our investment products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•manipulative trading activity on digital asset trading platforms;

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•decreased confidence in the digital asset industry due to the unregulated nature and lack of transparency surrounding the operations of digital asset trading platforms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the extent to which retail and other individual investors (as distinguished from institutional investors) invest in our Class A common stock, which may result in increased volatility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•litigation threatened or filed against us, participants in the digital asset industry or both;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•developments in new legislation or actions or investigations by regulators against us or other participants in the digital assets industry, including with respect to the security status of the digital assets for which we offer investment products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure to comply with the requirements of the stock exchange on which we intend to list our Class A common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•other events or factors, including those resulting from war or acts of terrorism or responses to these events.

In addition, the stock market in general, and the market for participants in the digital asset industry in particular, has experienced significant price and volume fluctuations that have often been unrelated or disproportionate to their operating performance. In the past, following periods of volatility in the overall market and the market price of a particular company's securities, class action litigation has often been instituted against that company. Securities litigation, if instituted against us, could result in substantial costs and divert our management's attention and resources.

***No public market for our Class A common stock currently exists, and an active public trading market may not develop or be sustained following this offering, which could adversely affect the price and liquidity of our Class A common stock.***

No public market for our Class A common stock currently exists. An active public trading market for our Class A common stock may not develop following the completion of this offering, or if developed, may not be sustained. The lack of an active market may impair your ability to sell your shares at the time you wish or at a price that you consider reasonable. The lack of an active market may also reduce the fair value of your shares. An inactive market may also impair our ability to raise capital to continue to fund operations by selling shares and may impair our ability to acquire other companies or digital assets by using our shares as consideration.

***Future sales of our Class A common stock in the public market could cause the market price of our Class A common stock to decline.*** 

Sales of a substantial number of shares of our Class A common stock, including those issuable upon redemption or exchange of the LLC Units owned by the Pre-IPO LLC Members, in the public market following the completion of this offering, or the perception that these sales might occur, could depress the market price of our Class A common stock and impair our ability to raise capital through the sale of additional shares. The Pre-IPO LLC Members have substantial unrecognized gains on the value of the equity they hold based upon the price of this offering, and therefore may take steps to redeem or exchange their LLC Units into shares of Class A common stock and sell such shares or otherwise secure the unrecognized gains on those shares. We are unable to predict the timing of or the effect that such sales may have on the prevailing market price of our Class A common stock. All of the Class A common stock sold in this offering will be freely tradable without restrictions or further registration under the Securities Act, except for any shared held by our affiliates as defined in Rule 144. The Class A common stock issuable upon redemption or exchange of the LLC Units held by the Pre-IPO LLC Members will be deemed "restricted securities" as that term is defined under Rule 144 of the Securities Act.

All of our directors and executive officers and DCG, who together hold all of our outstanding stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock, are subject to lock-up agreements with the underwriters, pursuant to which they have agreed that they will not, and will not publicly disclose an intention to, during the period beginning on the date of this prospectus and continuing through the date that is days after the date of this prospectus (such period, the "Lock-up Period"), offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any of our shares of common stock, any

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

options or warrants to purchase any of our shares of common stock or any securities convertible into or exchangeable for or that represent the right to receive shares of our common stock or enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our common stock, provided that Morgan Stanley & Co. LLC on behalf of the underwriters may release any of the securities subject to these lock-up agreements at any time, subject to the applicable notice requirements.

In addition, the Lock-up Period may be shortened with respect to a portion of the locked-up securities held by certain lock-up parties, and the lock-up agreements are subject to a number of exceptions. These agreements are further described in the sections titled "Shares Eligible for Future Sale" and "Underwriting." If not earlier released, then any shares of Class A common stock issued upon exchange or redemption of the LLC Units held by the Pre-IPO LLC Members will become eligible for sale upon expiration of the Lock-up Period, subject to the requirements of Rule 144 or another applicable exemption under the Securities Act or pursuant to an effective registration statement under the Securities Act.

In addition, after giving effect to the IPO Reorganization and the assumption by Grayscale Holdings of all equity awards issued or issuable by GSOIH under the Existing Incentive Plan, there would have been shares of Class A common stock issuable upon the exercise of options and upon the vesting and settlement of restricted stock units outstanding as of . We intend to register all of the shares of Class A common stock issuable upon exercise of outstanding options, the vesting and settlement of outstanding restricted stock units and other equity incentives we may grant in the future for public resale under the Securities Act. The shares of Class A common stock will become eligible for sale in the public market to the extent such options are exercised or restricted stock units vested and settled, subject to the lock-up agreements described above and compliance with applicable securities laws.

Further, the Pre-IPO LLC Members will have rights, subject to some conditions, to require us to file registration statements covering the sale of their shares of Class A common stock (including any shares of Class A common stock issuable upon exchange or redemption of the LLC Units) or to include their shares in registration statements that we may file for us or other stockholders.

Sales, short sales or hedging transactions involving our equity securities, whether before or after this offering and whether or not we believe them to be prohibited, could adversely affect the market price of our Class A common stock.

***If you purchase shares of our Class A common stock in this offering, then you will incur immediate and substantial dilution.*** 

The initial public offering price is substantially higher than the pro forma net tangible book value per share of our Class A common stock immediately following this offering based on the total value of our tangible assets less our total liabilities. Therefore, if you purchase our Class A common stock in this offering at the initial public offering price of $ per share, you will experience an immediate dilution of $ per share, representing the difference between the price per share you pay for our Class A common stock and our pro forma as adjusted net tangible book value per share as of , 2025 of $, after giving effect to the issuance by us of shares of our Class A common stock in this offering. In addition, you may also experience additional dilution if options, restricted stock units or other rights to purchase our Class A common stock that are outstanding or that we may issue in the future are exercised, vest or are converted or we issue additional shares of our Class A common stock at prices lower than our net tangible book value at such time.

***If securities or industry analysts do not publish research or publish unfavorable or inaccurate research about our business, then the market price and trading volume of our Class A common stock could decline.***

The market price and trading volume of our Class A common stock following the completion of this offering will be heavily influenced by the way securities and industry analysts interpret our financial information and other disclosures. We do not have control over these analysts. If few securities analysts commence coverage of us, or if industry analysts cease coverage of us, then our stock price would be negatively affected. If analysts do not publish research or reports about our business, downgrade our Class A common stock or publish negative reports, then our

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

stock price would likely decline. If any of these analysts cease coverage of us or fail to publish reports on us regularly, then demand for our Class A common stock could decrease, which might cause our stock price to decline and decrease the trading volume of our Class A common stock.

***We are an "emerging growth company," and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our Class A common stock less attractive to investors.*** 

We are an "emerging growth company" as defined in the JOBS Act. We will remain an emerging growth company until the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the end of the fiscal year during which we have total annual gross revenue of $1.235 billion (as adjusted for inflation pursuant to SEC rules from time to time) or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the end of the fiscal year following the fifth anniversary of the completion of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the date on which we are deemed to be a "large accelerated filer" under the Exchange Act.

As a result of our "emerging growth company status," we may take advantage of exemptions from various reporting requirements that would otherwise be applicable to public companies including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Investors may find our Class A common stock less attractive because we may rely on these exemptions. If some investors find our Class A common stock less attractive as a result, then there may be a less active trading market for our Class A common stock and the market price of our Class A common stock may be adversely affected and more volatile.

***We will incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to compliance with our public company responsibilities and corporate governance practices.*** 

As a public company, we will incur significant legal, accounting and other expenses that we did not incur as a private company, which we expect to further increase after we are no longer an "emerging growth company." The Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the listing requirements of the New York Stock Exchange and other applicable securities rules and regulations impose various requirements on public companies. Our management and other personnel will devote a substantial amount of time to compliance with these requirements. Moreover, these rules and regulations will increase our legal and financial compliance costs and make some activities more time-consuming and costly. We cannot predict or estimate the amount of additional costs we will incur as a public company or the specific timing of such costs.

***Following the completion of this offering, we will be a "controlled company" as defined under the corporate governance rules of the , and as a result, will qualify for exemptions from certain corporate governance requirements of the .*** 

Upon completion of this offering, DCG will continue to own % of the voting power of our shares of Class A common stock eligible to vote in the election of our directors (or % if the underwriters exercise in full their option to purchase additional shares of our Class A common stock from us to cover over-allotments). As a result, we will be a "controlled company" as defined under the corporate governance rules of the , and therefore, will qualify for exemptions from certain corporate governance requirements of the , including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the requirement that our board of directors be composed of a majority of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the requirement that the Nominating and Governance Committee be composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities or, if no such

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

committee exists, that our director nominees be selected or recommended by independent directors constituting a majority of our board of directors' independent directors in a vote in which only independent directors participate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the requirement that the Compensation Committee be composed entirely of independent directors with a written charter addressing the committee's purpose and responsibilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the requirement for an annual performance evaluation of the Nominating and Governance Committee and the Compensation Committee.

We may elect to take advantage of one or more of these exemptions from time to time in the future. As a result, you may not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements of the . Investors may find our Class A common stock less attractive because we may rely on these exemptions. If some investors find our Class A common stock less attractive as a result, then there may be a less active trading market for our Class A common stock and the market price of our Class A common stock may be adversely affected and more volatile. See "Management—Controlled Company Exemption."

***Following the completion of this offering, DCG will continue to control the direction of our business, and the concentrated ownership of our common stock may prevent you and other stockholders from influencing significant decisions.*** 

Upon completion of this offering, DCG will continue to own % of the total voting power of our outstanding shares of common stock (or % if the underwriters exercise in full their option to purchase additional shares of our Class A common stock from us to cover over-allotments). Investors in this offering generally will not be able to affect the outcome of any matter submitted to our stockholders for approval as long as DCG or its successor-in-interest beneficially owns a majority of the total voting power of our outstanding shares of common stock. As long as DCG or its successor-in-interest beneficially owns a majority of the total voting power of our outstanding shares of common stock, it will generally be able to control, whether directly or indirectly through its ability to remove and elect directors, and subject to applicable law, all matters affecting us without the approval of other stockholders, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•determinations with respect to our business direction and policies, including the election and removal of directors and the appointment and removal of officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•determinations with respect to corporate transactions, such as mergers, business combinations or dispositions of assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our financing and dividend policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our compensation and benefit programs and other human resources policy decisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•termination of, changes to or determinations under our agreements with DCG;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•determinations with respect to tax matters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes to any other agreements that may adversely affect us.

If DCG does not dispose of its remaining equity interest or purchases shares of our common stock in the open market following the completion of this offering, then it could remain our controlling stockholder for an extended period of time or indefinitely. Even if DCG were to beneficially own less than a majority of the total voting power of our outstanding shares of common stock, it may be able to influence the outcome of corporate actions requiring stockholder approval for as long as it owns a significant portion of our common stock.

DCG's interests may not be the same as, or may conflict with, the interests of our other stockholders. Actions that DCG takes with respect to us, as a controlling or significant stockholder, may not be favorable to us or our other stockholders.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Our management team has limited experience managing a public company.*** 

Our management team has limited experience managing a public company, interacting with public company investors and complying with the increasingly complex laws pertaining to public companies, and may not successfully or efficiently manage our transition to being a public company subject to significant regulatory oversight and reporting obligations under the federal securities laws and the continuous scrutiny of securities analysts and investors. These new obligations and constituents will require significant attention from our management and could divert their attention from the day-to-day management of our business, which could adversely affect our business, financial condition and results of operations.

***We will be required to indemnify our directors and certain officers or other agents against a wide range of potential liabilities, and these indemnification obligations could be material.*** 

Our organizational documents will provide for customarily broad rights of indemnification for directors and certain officers or other agents, as well as the possibility of advancement of expenses to such indemnified persons. In addition, we have entered into indemnification agreements with our directors and officers. While rights of indemnification are typically viewed as a key protection and inducement for indemnified persons to serve in senior roles in which they may be exposed to liability, indemnification payments and advancement of expenses may be material and may have an adverse effect on us.

Furthermore, indemnified persons may be subject to derivative or other similar claims brought by us or our stockholders, which claims would generally be expected to be covered by rights of indemnification and, potentially, advancement of expenses. In certain circumstances, subject to applicable laws in the relevant jurisdictions, indemnified persons may be entitled to indemnification even if their liabilities arose from their own negligence or unlawful conduct. We have incurred, and are expected to continue to incur, significant expense to procure directors and officers liability insurance that both supports our potential indemnification obligations, and in some cases, provides indemnified persons with additional protection beyond the scope of these obligations. If we are unable to maintain adequate insurance, then there could be adverse consequences.

***Failure to maintain effective internal controls could cause our investors to lose confidence in us and adversely affect the market price of our Class A common stock.*** 

As a public company, we will be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, SEC rules and regulations and the listing rules of the , including the establishment and maintenance of effective disclosure and financial controls, changes in corporate governance practices, and required filing of annual, quarterly, and current reports with respect to our business and results of operations. We expect that the requirements of these rules and regulations will continue to increase our legal, accounting and financial compliance costs, make some activities more difficult, time-consuming and costly and place significant strain on our personnel, systems and resources.

Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, requires that we maintain internal control over financial reporting that meets applicable standards. We are developing and refining our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that information required to be disclosed in reports under the Exchange Act is accumulated and communicated to our principal executive and financial officers. We are also continuing to improve our internal control over financial reporting, which includes hiring additional accounting and financial personnel to implement such processes and controls. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal control over financial reporting, we have expended, and anticipate that we will continue to expend, significant resources, including accounting-related costs, new internal processes and procedures and significant management oversight. We may err in the design or operation of our controls, and all internal control systems, no matter how well designed and operated, can provide only reasonable assurance that the objectives of the control system are met. Because there are inherent limitations in all control systems, there can be no assurance that all control issues have been or will be detected. If we are unable, or are perceived as unable, to produce reliable financial reports due to

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

internal control deficiencies, investors could lose confidence in our reported financial information and operating results, which could result in a negative market reaction and a decrease in our stock price.

Following our initial public offering, we will be required, pursuant to Section 404, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting. Such report will not be required until our second annual report filed on Form 10-K. We will need to disclose any material weaknesses identified by our management in our internal control over financial reporting. As an "emerging growth company," we will avail ourselves of the exemption from the requirement that our independent registered public accounting firm attests to the effectiveness of our internal control over financial reporting under Section 404. However, we may no longer avail ourselves of this exemption when we cease to be an "emerging growth company." When our independent registered public accounting firm is required to undertake an assessment of our internal control over financial reporting, the cost of our compliance with Section 404 will correspondingly increase. Our compliance with applicable provisions of Section 404 may require that we incur substantial accounting expense and expend significant management time on compliance-related issues as we implement additional corporate governance practices and comply with reporting requirements. Moreover, if we are not able to comply with the requirements of Section 404 applicable to us in a timely manner, or if we or our independent registered public accounting firm identifies deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, the market price of our stock could decline and we could be subject to sanctions or investigations by the SEC or other regulatory authorities, which would require additional financial and management resources.

In connection with the audit of our consolidated financial statements for the fiscal year ended December 31, 2023, we identified a material weakness in our internal controls related to the lack of systemically enforced review of journal entries by the general ledger system. In connection with this prior material weakness, we implemented remediation measures by replacing the prior general ledger system with a new general ledger system that has enhanced systemically enforced review control capabilities as well as by hiring additional personnel with experience in the ongoing identification, design and implementation of internal control over financial reporting. This prior material weakness was determined to be fully remediated as of December 31, 2024, and there were no material weaknesses identified in connection with the audit of our consolidated financial statements for the fiscal year ended December 31, 2024.

If we identify new material weaknesses in our internal control over financial reporting, if we are unable to comply with the requirements of Section 404 in a timely manner, if we are unable to assert that our internal control over financial reporting is effective, or if our independent registered public accounting firm is unable to express an opinion as to the effectiveness of our internal control over financial reporting, we may be late with the filing of our periodic reports, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our Class A common stock could be negatively affected. As a result of such failures, we could also become subject to investigations by the stock exchange on which our securities are listed, the SEC, or other regulatory authorities, and become subject to litigation from investors and stockholders and/or unable to remain listed on the , which could harm our reputation and financial condition or divert financial and management resources from our core business, and would have a material adverse effect on our business, financial condition and results of operations.

***Our certificate of incorporation and bylaws will provide for an exclusive forum in the Court of Chancery of the State of Delaware for certain disputes between us and our stockholders, and that the federal district courts of the United States will be the exclusive forum for the resolution of any complaint asserting a cause of action under the Securities Act.*** 

Our certificate of incorporation and bylaws will provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if such court does not have subject matter jurisdiction thereof, the District Court for the District of Delaware) will, to the fullest extent permitted by law, be the sole and exclusive forum for: any derivative action or proceeding brought on our behalf; any action asserting a claim for, or based on, a breach of a fiduciary duty owed by any of our current or former directors, officers, other employees, agents or stockholders to us or our stockholders including, without limitation, a claim alleging the aiding and abetting of such a breach of fiduciary duty; any action asserting a claim against us or any of our current or former directors, officers, employees, agents or stockholders arising pursuant to any provision of the

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Delaware General Corporation Law, our certificate of incorporation or bylaws, or as to which the Delaware General Corporation Law confers jurisdiction on the Court of Chancery of the State of Delaware; or any action asserting a claim related to or involving us that is governed by the internal affairs doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States will, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act, and the rules and regulations promulgated thereunder, although there is uncertainty as to whether a court would enforce this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Any person or entity purchasing or otherwise acquiring or holding any interest in shares of our capital stock will be deemed to have notice of and consented to these provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Failure to enforce the foregoing provisions would cause us irreparable harm, and we will be entitled to equitable relief, including injunctive relief and specific performance, to enforce the foregoing provisions.

Nothing in our certificate of incorporation or bylaws will preclude stockholders that assert claims solely under the Exchange Act from bringing such claims in federal court to the extent that the Exchange Act confers exclusive federal jurisdiction over such claims, subject to applicable law.

The choice of forum provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our current or former directors, officers, other employees, agents or stockholders, which may discourage such claims against us or any of our current or former directors, officers, other employees, agents or stockholders and result in increased costs for investors to bring such a claim. We believe these provisions may benefit us by providing increased consistency in the application of the Delaware General Corporation Law and federal securities laws by chancellors and judges, as applicable, particularly experienced in resolving corporate disputes, efficient administration of cases on a more expedited schedule relative to other forums and protection against the burdens of multi-forum litigation. If a court were to find the choice of forum provision contained in our certificate of incorporation or our bylaws to be inapplicable or unenforceable in an action, then we may incur additional costs associated with resolving such action in other jurisdictions, which could adversely affect our business, financial condition and results of operations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Special Note Regarding Forward-Looking Statements** 
We have made statements under the captions "Prospectus Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business" and in other sections of this prospectus that are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the caption entitled "Risk Factors." You should specifically consider the numerous risks outlined under "Risk Factors." These risks and uncertainties include, but are not limited to, factors related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•declines in the market prices of digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our exposure to investor sentiment toward digital assets and, in particular, Bitcoin and Ethereum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our exposure to a concentration of assets in the digital asset class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our failure to compete effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•failure of our investment products to achieve their investment objective for the foreseeable future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our failure to develop, maintain and enhance our brand and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•lack of liquidity and market disruptions that disrupt trading or create volatility and undermine investor confidence in our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our inability to develop new investment products, and the introduction of new competing investment products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ineffectiveness of our risk mitigation strategies in mitigating new or existing operational risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our limited operating history and the variability of our operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our reliance on third-party providers, and our inability to maintain adequate relationships with third-party banking partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the development, public acceptance and adoption of digital assets, including Bitcoin and Ethereum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•extreme volatility in the prices of digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•unsuccessful efforts to increase the volume, speed and accessibility of digital asset transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•loss of confidence by customers, counterparties and regulators in the digital asset industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•incorrect execution of digital asset transactions, including errors by our employees in the transfer of digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•uncertainties related to the tax treatment of digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•regulatory changes or actions in the U.S. or foreign jurisdictions that lead to restrictions in the use of digital assets or operation of digital asset networks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fraud, market manipulation, business or security failures or other problems in the operations of digital asset trading platforms that adversely affect the prices of digital assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the use of digital asset networks to facilitate illicit activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a determination that a digital asset is a security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our failure to comply with the extensive government regulations that we are subject to;

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to obtain, maintain, protect, defend or enforce our intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our failure to comply with obligations under license agreements, or an inability to license rights on reasonable terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•cybersecurity incidents and other issues related to our information systems, technology and data, including interruptions to the operations and integrity of our systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to comply with, and changes to, laws and regulations relating to data privacy and security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our dependence on distributions from Grayscale Operating, LLC to fund dividend payments, if any, and our taxes and expenses, including payments under the Tax Receivable Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DCG's control of us and our status as a controlled company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to realize any benefit from our organizational structure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the other risk factors described under "Risk Factors."

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. These statements are based on information available to us as of the date of this prospectus, which may be limited or incomplete. You should not place undue reliance on the forward-looking statements included in this prospectus. We are under no duty to update any of these forward-looking statements after the date of this prospectus to conform our prior statements to actual results or revised expectations.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **ORGANIZATIONAL STRUCTURE** 

## **The Pre-IPO Reorganization** 
On January 1, 2025, we consummated an internal corporate reorganization (the "Pre-IPO Reorganization") involving the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Grayscale Investments, LLC merged into Grayscale Operating, LLC, with Grayscale Operating, LLC surviving the merger as a wholly owned subsidiary of DCG Grayscale Holdco, LLC ("DCG Grayscale Holdco"), which in turn is wholly owned by DCG, our controlling shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Grayscale Operating, LLC assigned certain contracts related to Grayscale Investments, LLC's role as sponsor of our investment products to Grayscale Investments Sponsors, LLC, which is a wholly owned subsidiary of Grayscale Operating, LLC and succeeded to Grayscale Investments, LLC as the sponsor of our investment products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DCG Grayscale Holdco transferred limited liability units constituting 10% common ownership interest in Grayscale Operating, LLC to GSO Intermediate Holdings Corporation ("GSOIH"), a wholly owned subsidiary of DCG Grayscale Holdco, and GSOIH became the sole managing member of Grayscale Operating, LLC.

The diagram below depicts our organizational structure immediately following the Pre-IPO Reorganization. This chart is provided for illustrative purposes only and does not purport to ‎represent all legal entities within our organizational structure.

![img52763228_1.jpg](img52763228_1.jpg)

## **Structure Prior to the IPO Reorganization** 
GSO Intermediate Holdings I Corporation was formed as a Delaware corporation on May 2, 2025, and will be renamed to prior to the completion of this offering. Grayscale Holdings will be the issuer of the Class

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

A common stock offered hereby. We currently conduct our business through Grayscale Operating, LLC and its subsidiaries. All of Grayscale Operating, LLC's outstanding equity interests are currently owned by the following persons and entities, to whom we refer collectively as the "Pre-IPO LLC Members" and both controlled by DCG:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DCG Grayscale Holdco; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GSOIH, which has issued equity awards to certain of our employees under the 2025 Omnibus Incentive Plan (the "Existing Incentive Plan").

## **The IPO Reorganization** 
In connection with this offering, we intend to enter into the following series of transactions ‎to implement another internal corporate reorganization, which we collectively refer to as the "IPO Reorganization":‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎GSO Intermediate Holdings I Corporation will be renamed to ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Grayscale Holdings' certificate of incorporation will be amended to authorize the issuance of two classes of common stock: Class A common stock and Class B common stock, which we refer to collectively as our "common stock." Each share of Class A common stock is entitled to one vote per share on all matters submitted to a vote of our stockholders and is entitled to economic rights. Each share of Class B common stock is entitled to votes per share on all matters submitted to a vote of our stockholders but is not entitled to economic rights. See "Description of Capital Stock";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The LLC Agreement of Grayscale Operating, LLC will be amended and restated prior to this offering to, among other things, appoint Grayscale Holdings as the sole managing member of Grayscale Operating, LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•As sole managing member of Grayscale Operating, LLC, Grayscale Holdings will have sole authority to (a) determine the amount and timing of distributions from Grayscale Operating, LLC and (b) offer LLC Units to future members. ‎Because we will manage and operate the business and control the strategic decisions and ‎day-to-day operations of Grayscale Operating, LLC and will also have a substantial financial interest ‎in Grayscale Operating, LLC, we will consolidate the financial results of Grayscale Operating, LLC, and a ‎portion of our net income will be allocated to noncontrolling interest to reflect the entitlement ‎of the Pre-IPO LLC Members to a portion of Grayscale Operating, LLC's net income. In addition, ‎because Grayscale Operating, LLC will be under the common control of DCG ‎before and after the IPO Reorganization, we will account for the IPO Reorganization as a reorganization of entities under common control and will initially measure ‎the interests of the Pre-IPO LLC Members in the assets and liabilities of Grayscale Operating, LLC at ‎their carrying amounts as of the date of the completion of the IPO Reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Each of the Pre-IPO LLC Members will be issued shares of our Class B ‎common stock in an amount equal to the number of LLC Units held by each such Pre-IPO ‎LLC Member;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Under the Amended LLC Agreement, all current and future holders of LLC Units, including the Pre-IPO LLC Members, will ‎have the right, from and after the completion of this offering, to require Grayscale Operating, LLC to ‎redeem all or a portion of their LLC Units for, at our election, newly issued shares of Class A ‎common stock on a one-for-one basis or a cash payment equal to the volume weighted ‎average market price of one share of our Class A common stock for each LLC Unit redeemed ‎‎(subject to customary adjustments, including for stock splits, stock dividends and ‎reclassifications) in accordance with the terms of the Amended LLC Agreement (the ‎‎"Redemption Right"). Additionally, in the event of a redemption request by a holder of LLC ‎Units, we may, at our option, effect a direct exchange of cash or Class A common stock for ‎LLC Units in lieu of such a redemption. A corresponding number of shares of Class B common ‎stock will be cancelled on a one-for-one basis if we, following a redemption request of a holder ‎of LLC Units, redeem or exchange LLC Units of such holder of LLC Units pursuant to the ‎terms of the Amended LLC Agreement. See "Certain Relationships and Related Person ‎Transactions—Amended LLC Agreement." Except for transfers to us pursuant to the ‎Amended LLC Agreement or to certain permitted transferees, the holders of LLC Units are not ‎permitted to sell, transfer or otherwise dispose of any LLC Units or shares of Class B common ‎stock;‎

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎All equity awards issued or issuable by GSOIH under the Existing Incentive Plan will be assumed by Grayscale Holdings, and vested equity awards issued by GSOIH under the Existing Incentive Plan will be exercisable for shares of Class A common stock of Grayscale Holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Grayscale Holdings will enter into a Tax Receivable Agreement that will obligate us to make payments ‎to the Pre-IPO LLC Members and any future party to the Tax Receivable Agreement ‎generally equal to % of the applicable cash savings that we actually realize as a result of ‎certain tax basis adjustments resulting from the purchase of LLC Units from the Pre-IPO LLC ‎Members in connection with or after this offering, future taxable redemptions or exchanges of ‎LLC Units by the holders of LLC Units and from payments made under the Tax Receivable ‎Agreement. We will retain the benefit of the remaining % of these tax savings;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Grayscale Holdings and the Pre-IPO LLC Members will enter into the Stockholders Agreement, ‎which will, among other things, provide that, for so long as the Pre-IPO LLC Members beneficially hold at least % of the aggregate number of outstanding shares of our common stock, approval by the Pre-IPO LLC Members will be required for certain ‎corporate actions;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Grayscale Holdings will issue shares of Class A common stock to the public pursuant to ‎this offering;‎ and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Grayscale Holdings will use all of its net proceeds from this offering (including net proceeds received if the underwriters exercise their option to purchase additional shares of Class A common stock in full) to acquire LLC units from the Pre-IPO LLC Members (or LLC Units, if the underwriters exercise their option to purchase additional shares of Class A common stock in full), at a purchase price per LLC Unit equal to the initial public offering price of Class A common stock after underwriting discounts and commissions.

## **Effect of the IPO Reorganization and this Offering** 
The IPO Reorganization is intended to create a holding company that will facilitate ‎public ownership of, and investment in, the Company and is structured in a tax-efficient manner ‎for the Pre-IPO LLC Members. The Pre-IPO LLC Members desire that their investment in the ‎Company maintains its existing tax treatment as a partnership for U.S. federal income tax purposes ‎and, therefore, will continue to hold their ownership interests in Grayscale Operating, LLC until such time ‎in the future as they may elect to cause us to redeem or exchange their LLC Units for a ‎corresponding number of shares of our Class A common stock.‎

We estimate that the offering expenses (other than the underwriting discounts and ‎commissions) will be approximately $‎ million. See "Use of Proceeds."‎

The diagram below depicts our organizational structure immediately following the IPO Reorganization, this offering and the application of the net proceeds from this offering, assuming an ‎initial public offering price of $‎ per share (the midpoint of the estimated initial public offering price ‎range set forth on the cover page of this prospectus) and no exercise of the underwriters' option to ‎purchase additional shares. This chart is provided for illustrative purposes only and does not purport to ‎represent all legal entities within our organizational structure.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

![img52763228_3.jpg](img52763228_3.jpg)

Upon completion of the transactions described above, this offering and the application of the ‎net proceeds from this offering:‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Grayscale Holdings will be appointed as the sole managing member of Grayscale Operating, LLC and will hold ‎LLC Units, constituting % of the outstanding economic interests in Grayscale Operating, LLC (or‎ LLC Units, constituting % of the outstanding economic interests in Grayscale Operating, LLC if the underwriters exercise their option to purchase additional shares of Class A ‎common stock in full);‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the Pre-IPO LLC Members will hold (i) LLC Units, representing approximately % of ‎the economic interest in Grayscale Operating, LLC (or % if the underwriters exercise their option to ‎purchase additional shares of Class A common stock in full) and (ii) through their ownership of ‎Class B common stock, approximately % of the combined voting power of our common stock ‎‎(or % if the underwriters exercise their option to purchase additional shares of Class A common stock in full). There are no limitations in the Amended LLC Agreement on the ‎number of LLC Units issuable in the future and we are not required to own a majority of LLC ‎Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎Investors in this offering will collectively beneficially own (i)‎ shares of our Class A ‎common stock, representing approximately ‎% of the combined voting power in us (or shares and %, respectively, if the underwriters exercise their option to purchase ‎additional shares of Class A common stock in full) and (ii) through our ownership of LLC ‎Units, indirectly will hold approximately ‎% of the economic interest in Grayscale Operating, LLC (or‎ ‎% if the underwriters exercise their option to purchase additional shares of Class ‎A common stock in full).‎

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **Holding Company Structure and the Tax Receivable Agreement** 
We are a holding company, and immediately after the consummation of the IPO Reorganization and this offering our principal asset will be our ownership interests in Grayscale Operating, LLC. The number of LLC Units that we will own directly in the aggregate at any time will equal ‎the aggregate number of outstanding shares of our Class A common stock. The economic interest ‎represented by each LLC Unit that we own directly will correspond to one share of our Class A ‎common stock, and the total number of LLC Units owned directly by us and the holders of our Class B ‎common stock at any given time will equal the sum of the outstanding shares of all classes of our ‎common stock.‎

We do not intend to list our Class B common stock on any stock exchange.‎

Acquisitions by Grayscale Holdings of LLC Units from the Pre-IPO LLC Members in connection with ‎this offering and future taxable redemptions or exchanges by the Pre-IPO LLC Members of LLC ‎Units for shares of our Class A common stock are expected to produce tax basis adjustments to the ‎assets of Grayscale Operating, LLC that will be allocated to us and thus produce favorable tax ‎attributes. These tax attributes would not be available to us in the absence of those transactions.‎

We intend to enter into the Tax Receivable Agreement with the Pre-IPO LLC Members that will ‎provide for the payment by us to the Pre-IPO LLC Members of % of the amount of cash savings, ‎if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result ‎of ‎(i)‎ any increase in tax ‎basis in Grayscale Operating, LLC's assets resulting from (a) acquisitions by Grayscale Holdings of LLC ‎Units from the Pre-IPO LLC Members in connection with this offering, (b) the acquisition of LLC Units ‎from the Pre-IPO LLC Members using the net proceeds from any future offering, (c) future taxable ‎redemptions or exchanges by the Pre-IPO LLC Members of LLC Units for shares of our Class A ‎common stock or cash or (d) payments under the Tax Receivable Agreement and (ii) tax benefits ‎related to imputed interest resulting from payments made under the Tax Receivable Agreement. ‎Payments under the Tax Receivable Agreement will be based on the tax reporting positions we ‎determine, and the IRS or another tax authority may challenge all or part of the deductions, tax basis increases or other tax attributes subject to the Tax Receivable Agreement, and a ‎court could sustain such challenge. Although we are not aware of any issue that would cause the IRS ‎to challenge the tax basis increases or other benefits arising under the Tax ‎Receivable Agreement, the Pre-IPO LLC Members will not reimburse us for any payments previously ‎made if such basis increases or other benefits are subsequently disallowed, except that excess ‎payments made to the Pre-IPO LLC Members will be netted against future payments otherwise to be ‎made under the Tax Receivable Agreement, if any, after our determination of such excess. Also, the actual state or local tax savings we may realize may be different than the amount of such tax savings we are deemed to realize under the Tax Receivable Agreement, which will be based on an assumed combined state and local tax rate applied to our reduction in taxable income as determined for U.S. federal income tax purposes as a result of the tax attributes subject to the Tax Receivable Agreement. As a ‎result, in such circumstances we could make future payments to the Pre-IPO LLC Members under the ‎Tax Receivable Agreement that are greater than our actual cash tax savings and may not be able to ‎recoup those payments, which could negatively impact our liquidity.

Our obligations under the Tax Receivable Agreement will also apply with respect to any person ‎who is issued LLC Units in the future and who becomes a party to the Tax Receivable Agreement.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **USE OF PRO CEEDS** 
We estimate that the net proceeds to us from this offering will be approximately $ million, or approximately $ million if the underwriters exercise their option to purchase additional shares in full, assuming an initial public offering price of $ per share (the midpoint of the range set forth on the cover page of this prospectus), after deducting estimated underwriting discounts and commissions and estimated offering expenses.

Each $1.00 increase or decrease in the assumed initial public offering price of $ per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, would increase or decrease, as applicable, the net proceeds to us from this offering by approximately $ million, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares we are offering. Each increase or decrease of 1.0 million shares in the number of shares offered by us would increase or decrease, as applicable, the net proceeds to us from this offering by approximately $ million, assuming that the assumed initial public offering price remains the same and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.

We will use all of the net proceeds from this offering (including net proceeds received if ‎the underwriters exercise their option to purchase additional shares of Class A common stock) ‎to acquire LLC Units from the Pre-IPO LLC Members at a purchase price per LLC Unit equal to the initial public offering price ‎of Class A common stock after underwriting discounts and commissions.‎

Grayscale Operating, LLC will not receive any proceeds from the purchase of LLC Units from the Pre-IPO LLC Members by us.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Dividen d Policy** 
Any determination to pay dividends on our Class A common stock will be at the discretion of our board of directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, general business conditions and other factors that our board of directors considers relevant. Moreover, our ability to pay dividends if and when our board of directors determines to do so, may be restricted by regulatory limits under applicable laws.

Grayscale Holdings will be a holding company and will have no material assets other than its ownership of LLC Units in Grayscale Operating, LLC, and as a consequence, our ability to declare and pay dividends to the holders of our Class A common stock, will be subject to the ability of Grayscale Operating, LLC to provide distributions to us. If Grayscale Operating, LLC makes such distributions, the holders of LLC Units will be entitled to receive equivalent distributions from Grayscale Operating, LLC. However, because we must pay taxes, make payments under the Tax Receivable Agreement and pay our expenses, amounts ultimately distributed as dividends to holders of our Class A common stock are expected to be less than the amounts distributed by Grayscale Operating, LLC to the Pre-IPO LLC Members on a per share basis. See "Certain Relationships and Related Person transactions—Tax Receivable Agreement."

Assuming Grayscale Operating, LLC makes distributions to its members in any given year, the determination to pay dividends, if any, to our Class A common stockholders out of the portion, if any, of such distributions remaining after our payment of taxes, Tax Receivable Agreement payments and expenses (any such portion, an "excess distribution") will be made by our board of directors. Because our board of directors may determine to pay or not pay dividends to our Class A common stockholders, our Class A common stockholders may not necessarily receive dividend distributions relating to excess distributions, even if Grayscale Operating, LLC makes such distributions to us.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Capitali zation** 
The following table sets forth our consolidated cash and cash equivalents and capitalization as of June 30, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•on an actual basis for Grayscale Operating, LLC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•on a pro forma basis for Grayscale Holdings, giving effect to the IPO Reorganization and other ‎matters described under "Unaudited Pro Forma Condensed Consolidated Financial Information" as prepared in ‎conformity with Article 11 of Regulation S-X, which ‎includes application of the proceeds from this offering as described in "Use of Proceeds" ‎based upon an assumed initial public offering price of $‎ per share (the midpoint of the range ‎set forth on the cover page of this prospectus).‎

The information set forth in the table below is illustrative only and our capitalization following this offering will be adjusted based on the actual initial public offering price and other terms of this offering determined at pricing. This table should be read in conjunction with the other information contained in this prospectus, including "Organizational Structure," "Use of Proceeds," ‎‎"Unaudited Pro Forma Condensed Consolidated Financial Information," "Management's Discussion and Analysis of ‎Financial Condition and Results of Operations," "Description of Capital Stock" and the ‎consolidated financial statements of Grayscale Operating, LLC and subsidiaries and related notes ‎thereto included elsewhere in this prospectus.‎

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** |
| **(Dollars in thousands, except share information)** | **Actual<br>Grayscale Operating, LLC** | **Pro forma<br>Grayscale Holdings**<sup>(1)</sup> |
| Cash and cash equivalents | $98725 | $— |
| Long term debt |  |  |
| **Member's equity/Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Member's equity | 82127 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A common stock, par value per share, no shares<br> authorized, no shares outstanding, actual; and shares<br> issued and outstanding, pro forma |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B common stock, par value per share, no shares<br> authorized, no shares outstanding, actual; and shares<br> issued and outstanding, pro forma |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest<sup>(2)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total member's/stockholders' equity | 82127 |  |
| Total capitalization | $82127 | $— |

---

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(1)‎A $1.00 increase or decrease in the assumed initial public offering price of $‎ per share ‎‎(which is the midpoint of the price range set forth on the cover page of this prospectus) would increase ‎or decrease total stockholder's equity and total capitalization on a ‎pro forma basis by approximately $‎ million, assuming the number of shares of Class A ‎common stock offered, as set forth on the cover page of this prospectus, remains the same, and after ‎deducting the estimated underwriting discounts and commissions and estimated offering expenses ‎payable by us. Each 1,000,000 increase or decrease in the number of shares of Class A common ‎stock offered in this offering would increase or decrease total ‎stockholder's equity and total capitalization on a pro forma basis by approximately $‎ million, ‎based on an assumed initial public offering price of $‎ per share, which is the midpoint of the ‎estimated public offering price range set forth on the cover page of this prospectus, and after ‎deducting the estimated underwriting discounts and commissions and estimated offering expenses ‎payable by us.

(2)‎On a pro forma basis, includes the Grayscale Operating, LLC interests not owned by us, ‎which represents ‎% of Grayscale Operating, LLC's LLC Units. Certain Pre-IPO LLC Members will hold the noncontrolling economic interests in Grayscale Operating, LLC. Grayscale Holdings ‎will hold ‎% of the economic interest in Grayscale Operating, LLC.‎

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Unaudited Pro Forma Condensed C onsolidated Financial Information** 
The unaudited pro forma condensed consolidated statement of financial condition as of June 30, 2025, and the ‎unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2025 and the fiscal year ended December 31, 2024, present our consolidated financial position and results of operations after giving effect to the following pro ‎forma transactions (the "Pro Forma Transactions"):‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the IPO Reorganization described under "Organizational Structure—IPO Reorganization," which include but are not limited to:‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the recognition of a noncontrolling interest in Grayscale Operating, LLC held by ‎the Pre-IPO LLC Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the entry into the Tax Receivable Agreement as described under the section titled "Certain Relationships and Related Person Transactions—Tax Receivable Agreement";‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the issuance of shares of our Class B common stock in an amount equal to ‎the number of LLC Units held by each Pre-IPO LLC Member;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the issuance of shares of our Class A common stock to the purchasers in this ‎offering in exchange for net proceeds of approximately $‎ ‎, assuming that the shares ‎are offered at $‎ per share (the midpoint of the price range listed on the cover page ‎of this prospectus), after deducting underwriting discounts and commissions but before ‎deducting estimated offering expenses;‎ and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the application by Grayscale Holdings of the net proceeds from this offering to acquire LLC Units from the Pre-IPO LLC Members at a purchase price per LLC Unit equal to the initial public offering price of ‎Class A common stock after underwriting discounts and commissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎The provision for federal and state income taxes of Grayscale Holdings as a taxable corporation at ‎a statutory rate of ‎% for the six months ended June 30, 2025.‎

The following unaudited pro forma condensed consolidated financial information has been derived from, and should be read in conjunction with, Grayscale Operating, LLC's audited consolidated financial statements and unaudited interim consolidated financial statements included elsewhere in this prospectus. The unaudited pro forma condensed consolidated statement of financial condition as of June 30, 2025 gives effect to the Pro Forma Transactions as if the Pro Forma ‎Transactions occurred on June 30, 2025. The unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2025 and fiscal year ended December 31, 2024 give effect to the Pro Forma Transactions as if the Pro Forma Transactions ‎had occurred on January 1, 2024.‎

The presentation of the unaudited pro forma condensed consolidated financial information is prepared in ‎conformity with Article 11 of Regulation S-X using the ‎assumptions set forth in the notes to the unaudited pro forma condensed consolidated financial information.‎

For purposes of the unaudited pro forma condensed consolidated financial information, we have assumed ‎that we will issue shares of Class A common stock at a price per share of $‎ ‎(which is the ‎midpoint of the estimated public offering price range set forth on the cover of this prospectus), and, ‎as a result, immediately following the completion of this offering, the ownership percentage ‎represented by LLC Units not held by us will be ‎%, and the net ‎income attributable to LLC Units not held by us will accordingly represent ‎% of our net ‎income. Except as otherwise indicated, the unaudited pro forma condensed consolidated financial information ‎presented assumes no exercise by the underwriters of their option to purchase additional shares of ‎Class A common stock.‎

As a public company, we will be implementing additional procedures and processes for the ‎purpose of addressing the standards and requirements applicable to public companies. We expect to ‎incur additional annual expenses related to these steps and, among other things, additional directors' ‎and officers' liability insurance, director fees, reporting requirements of the SEC, transfer agent fees, ‎hiring additional accounting, legal and administrative personnel, increased auditing and legal fees and ‎similar expenses. We have not included any pro forma adjustments relating to these expenses.

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

The unaudited pro forma condensed consolidated financial information is included for informational purposes only and is not necessarily indicative of the operating results that would have occurred if the Pro Forma Transactions had been completed as of the dates set forth above, nor is it indicative of the future consolidated results of operations or financial position of the Company. Further, we based the pro forma adjustments on available information and on assumptions that we ‎believe are reasonable under the circumstances to reflect, on a pro forma basis, the impact of ‎the Pro Forma Transactions on the historical financial information of Grayscale Operating, LLC. ‎As the unaudited pro forma condensed consolidated financial information has been prepared ‎based on these assumptions, the final amounts recorded may differ materially from the information ‎presented. The unaudited pro forma condensed consolidated financial information does not reflect any ‎anticipated synergies, operating efficiencies, tax savings, or cost savings.‎

The unaudited pro forma condensed consolidated financial information should be read together with ‎‎"Organizational Structure", "Use of Proceeds", "Capitalization", ‎‎"Management's Discussion and Analysis of Financial Condition and Results of Operations", "Certain Relationships and Related Person Transactions," the ‎audited consolidated financial statements of Grayscale Operating, LLC and ‎related notes thereto, and the unaudited interim consolidated financial statements of Grayscale Operating, LLC and related notes thereto included elsewhere in this prospectus.‎

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE HOLDINGS**

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET**

**AS OF JUNE 30, 2025**

**(in thousands)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Grayscale<br>Operating,<br>LLC<br>(Historical)** | **Transaction<br>Accounting<br>Adjustments** | **Grayscale Holdings<br>Pro Forma** |
| **Assets:** |  |  |  |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $98725 | **A** | $— |
|  |  | **B** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 6191 | **C** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 502 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from affiliates | 1097 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 106515 |  |  |
| Investments in digital asset trusts and funds | 760 |  |  |
| Equity investments | 1619 |  |  |
| Property and equipment, net | 1173 |  |  |
| Deferred tax asset, net |  | **D** |  |
|  |  | **E** |  |
| Right-of-use asset, net | 12943 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $123010 |  | $— |
| **Liabilities and equity** |  |  |  |
| **Liabilities:** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $27156 |  | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability with affiliate, current<br> portion | 1871 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 29027 |  |  |
| Operating lease liability with affiliate, net of current<br> portion | 11856 |  |  |
| Tax receivable agreement liability |  | **E** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 40883 |  |  |
| **Member's equity / stockholders' equity:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Member's equity | 82127 | **B** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A common stock |  | **A** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B common stock |  | **B** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital |  | **A** |  |
|  |  | **B** |  |
|  |  | **C** |  |
|  |  | **E** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings |  | **D** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity attributable to Grayscale Holdings | 82127 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests |  | **B** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 82127 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $123010 |  | $— |

---

See accompanying note to the unaudited pro forma condensed consolidated financial information.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE HOLDINGS**

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025**

**(in thousands, except share and per share amounts)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Grayscale<br>Operating,<br>LLC<br>(Historical)** | **Transaction<br>Accounting<br>Adjustments** | **Grayscale Holdings<br>Pro Forma** |
| **Operating revenues:** |  |  |  |
| Management fees, related parties | $198775 |  | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 198775 |  |  |
| **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | 26389 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 806 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 27188 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing | 12644 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;General, administrative and other | 9541 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 76568 |  |  |
| **Other income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized and unrealized (losses) gains, net | (416) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 1243 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 176 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 1003 |  |  |
| Income before income taxes | 123210 |  |  |
| Provision for income taxes | 841 | <br> **D** |  |
| Net income | 122369 |  |  |
| Net income attributable to non-controlling interests |  |  |  |
| Net income attributable to Grayscale Holdings | $122369 | $— | $— |
| Net income per share of Class A common stock: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  | <br> **F** |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  | <br> **F** |
| Weighted-average shares outstanding of Class A common<br> stock: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  | <br> **F** |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  | <br> **F** |

---

See accompanying note to the unaudited pro forma condensed consolidated financial information.

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE HOLDINGS**

**UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE YEAR ENDED DECEMBER 31, 2024**

**(in thousands, except share and per share amounts)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Grayscale Operating, LLC <br>(Historical)** | **Transaction<br>Accounting<br>Adjustments** | **Grayscale<br>Holdings<br>Pro Forma** |
| **Operating revenues:** |  |  |  |
| Management fees, related parties | $506157 |  | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 506157 |  |  |
| **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | 43878 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 2563 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 42309 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing | 32847 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;General, administrative and other | 19195 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 140792 |  |  |
| **Other income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized and unrealized gains, net | 2490 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 3812 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 61 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 6363 |  |  |
| Income before income taxes | 371728 |  |  |
| Provision for income taxes | 89579 |  |  |
| Net income | 282149 |  |  |
| Net income attributable to non-controlling interests |  |  |  |
| Net income attributable to Grayscale Holdings | $282149 |  | $— |
| Net income per share of Class A common stock: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  | —<br> **F** |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  | —<br> **F** |
| Weighted-average shares outstanding of Class A<br> common stock: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  | —<br> **F** |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  | —<br> **F** |

---

See accompanying note to the unaudited pro forma condensed consolidated financial information.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

## **Note 1 - Basis of Presentation and Description of Transactions** 
The Pro Forma Transactions, and the related transaction accounting adjustments, are described in the notes to the unaudited condensed consolidated pro forma financial statements herein. In the opinion of management, all material adjustments have been made that are necessary to present fairly the unaudited condensed consolidated pro forma financial statements in accordance with Article 11 of Regulation S-X.

GSO Intermediate Holdings I Corporation was formed as a Delaware corporation on May 2, 2025 and has not, to date, conducted any activities other than those incidental to its formation, the IPO Reorganization and the preparation of this prospectus and the registration statement of which this prospectus forms a part. As described elsewhere in this prospectus, in connection with the IPO Reorganization, (a) GSO Intermediate Holdings I Corporation will be renamed to , (b) the Pre-IPO LLC Members' interests in Grayscale Operating, LLC will be recapitalized into a single class of units, the newly issued LLC Units, with the LLC Units to be allocated to the Pre-IPO LLC Members in accordance with the terms of the Grayscale Operating, LLC Agreement and calculated using an implied valuation for Grayscale Operating, LLC based on the initial public offering price of the Class A common stock of Grayscale Holdings, and (c) Grayscale Holdings will use the net proceeds of this offering to acquire LLC Units from the Pre-IPO LLC Members. After the consummation of the IPO Reorganization, Grayscale Holdings will be the managing member of Grayscale Operating, LLC and will control and be responsible for all operational, management and administrative decisions relating to Grayscale Operating, LLC's business and will consolidate the financial results of Grayscale Operating, LLC and will report non-controlling interests in its consolidated financial statements related to the LLC Units that the Pre-IPO Members will own in Grayscale Operating, LLC.

Pursuant to the terms of the Grayscale Operating, LLC Agreement, as amended or restated, the LLC Units to be issued to the Pre-IPO LLC Members in connection with the reorganization will be calculated using an implied equity value of Grayscale Operating, LLC immediately prior to this offering, based on an initial public offering price of $ per share of Class A common stock and the current relative levels of ownership in Grayscale Operating, LLC with the allocation of such units among the Pre-IPO LLC Members to be determined based on the price established on the day of the pricing of our Class A common stock pursuant to this offering. After giving effect to the IPO Reorganization, (a) Grayscale Holdings will own LLC Units, or an approximate % interest in Grayscale Operating, LLC (or LLC Units, or %, if the underwriters' option to purchase additional shares is fully exercised), and (b) the Pre-IPO LLC Members will own LLC Units, or an approximate % interest in Grayscale Operating, LLC (or LLC Units, or % if the underwriters' option to purchase additional shares is fully exercised).

The unaudited pro forma condensed consolidated statement of financial condition as of June 30, 2025 is based on the unaudited interim consolidated statement of financial condition of Grayscale Operating, LLC as of June 30, 2025, adjusted to give effect to the Pro Forma Transactions as if they had occurred on June 30, 2025. The unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2025 and fiscal year ended December 31, 2024 are based on the unaudited interim consolidated statement of operations of Grayscale Operating, LLC for the six months ended June 30, 2025 and the audited consolidated statement of operations for the year ended December 31, 2024, adjusted to give effect to the Pro Forma Transactions as if they had occurred on January 1, 2024. The unaudited interim consolidated financial statements of Grayscale Operating, LLC as of and for the six months ended June 30, 2025 and the audited consolidated financial statements of Grayscale Operating, LLC for the year ended December 31, 2024 are included elsewhere in this prospectus.

The unaudited pro forma condensed consolidated financial statements assume no exercise by the underwriters of their option to purchase additional shares of Class A common stock. As a public company, Grayscale Holdings will be implementing additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies. Grayscale Holdings expects to incur additional annual expenses related to these steps and, among other things, additional directors' and officers' liability insurance, director fees, reporting requirements of the SEC, transfer agent fees, hiring additional accounting, legal and administrative personnel, increased auditing and legal fees and similar expenses. The unaudited pro forma condensed consolidated financial statements do not reflect any adjustments relating to these expenses.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

The unaudited pro forma condensed consolidated financial statements should be read in conjunction with Grayscale Operating, LLC's audited consolidated financial statements and the notes thereto and unaudited interim consolidated financial statements and the notes thereto which are included elsewhere in this prospectus. The unaudited pro forma condensed consolidated financial statements do not purport to be indicative of what Grayscale Holdings' financial position or results of operations would have been had the Pro Forma Transactions taken place on the dates indicated, nor are they indicative of Grayscale Holdings' future financial position or results of operations following the Pro Forma Transactions. In addition, future results may vary significantly from those reflected in such statements due to factors discussed in "Risk Factors" included elsewhere in this prospectus.

## **Note 2 - Transaction Accounting Adjustments** 
The unaudited pro forma condensed consolidated statement of financial condition as of June 30, 2025, and the unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2025 and year ended December 31, 2024 have been adjusted to reflect the Pro Forma Transactions as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Reflects the issuance by Grayscale Holdings of Class A common stock to the public pursuant to this offering for net proceeds of $ million, based on an assumed midpoint of the price range set forth on the cover of this prospectus, and the application of the net proceeds as described under "Use of Proceeds" included elsewhere in this prospectus after deducting estimated underwriting discounts and commissions and other offering related expenses paid at the time of the offering of $ million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.As part of the IPO Reorganization and upon closing of the offering, Grayscale Holdings will contribute the net proceeds of the public offering to Grayscale Operating, LLC in exchange for newly issued LLC Units. Additionally, the Pre-IPO LLC Members will exchange their Pre-IPO LLC interests for newly issued LLC Units and subscribe for newly issued Class B common stock of Grayscale Holdings, which is reflected as the elimination of Grayscale Operating, LLC's historical Members' equity with a corresponding decrease to additional paid-in capital and a reclassification to non-controlling interests of the amount attributable to the LLC Units to be held by the Pre-IPO LLC Members subsequent to the IPO Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Reflects estimated non-recurring costs of $ million related to the IPO Reorganization transactions, which primarily represent legal, accounting and other direct costs. Approximately $ million of these costs are included in the unaudited consolidated statement of financial condition of Grayscale Operating, LLC as of June 30, 2025. These costs will be recorded within additional paid-in capital upon the effective date of the IPO Reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Subsequent to the IPO Reorganization, Grayscale Holdings will have no material assets other than its interest in Grayscale Operating, LLC, which holds, directly or indirectly, all of the operating assets of Grayscale Holdings. Grayscale Operating, LLC will continue to be treated as a partnership for tax purposes and will not be subject to U.S. federal income tax, but may be subject to certain U.S. state and local taxes. Grayscale Holdings is a domestic corporation that will be subject to U.S. corporate income tax on its earnings, including its allocable share of the income of Grayscale Operating, LLC.

This pro forma adjustment reflects the recognition of deferred taxes in connection with the organizational transactions of Grayscale Holdings, assuming a pro forma blended statutory tax rate of % which includes a provision for U.S. federal, state and local taxes as well as a pro forma deferred tax asset adjustment of $ related to temporary differences in the book basis as compared to the tax basis of our investment in Grayscale Operating, LLC.

The pro forma adjustment to our income tax provision reflects an effective income tax rate of %, which includes a provision for U.S. federal income taxes and assumes the highest statutory rates apportioned to each state and local jurisdiction. The effective income tax rate of % was calculated by applying the blended statutory rate of % to the portion of pre-tax income attributable to Grayscale Holdings (%) as the pre-tax income attributable to the non-controlling interest holders (%) is not subject to federal and state income taxes.

A pro forma adjustment was not made to the provision for income taxes within the unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2024 as Grayscale Operating, LLC,

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

before the Pre-IPO Reorganization, was treated as a corporation in connection with its tax sharing agreement with DCG which is further described elsewhere in this prospectus.

Upon completion of the IPO Reorganization, Grayscale Holdings will recognize deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the historical cost basis and tax basis of its assets and liabilities in accordance with ASC 740, Income Taxes ("ASC 740").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.Prior to the completion of the Pro Forma Transactions, Grayscale Holdings will enter into the Tax Receivable Agreement with the Pre-IPO LLC Members that provides for the payment by Grayscale Holdings to such Pre-IPO Members of % the applicable cash savings that we actually realize as a result of certain tax basis adjustments resulting from the purchase of LLC Units from the Pre-IPO LLC Members in connection with or after this offering, future taxable redemptions or exchanges of LLC Units by the holders of LLC Units and from payments made under the Tax Receivable Agreement. The Tax Receivable Agreement will be accounted for as a contingent liability, with amounts accrued when considered probable and reasonably estimable. The following are the tax receivable agreement adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)We will record a deferred tax asset of $ million (or $ million if the underwriters exercise in full their option to purchase additional shares of Class A common stock). The deferred tax asset includes, (i) $ million related to , (ii) $ million related to , and (iii) $ million related to . To the extent we estimate that we will not realize the full benefit represented by the deferred tax assets, based on an analysis of expected future earnings, we will reduce deferred tax assets with a valuation allowance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)We will record a $ million liability under the Tax Receivable Agreement (or $ million if the underwriters exercise in full their option to purchase additional shares of Class A common stock) based on our estimate of the aggregate amount that we will pay to the Pre-IPO LLC Members under the Tax Receivable Agreement as a result of the Offering Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)We will record an adjustment to additional paid-in capital of $ million, the difference between the increase in deferred tax assets and the increase in liabilities due to the Pre-IPO LLC Members under the Tax Receivable Agreement as a result of the Pro Forma Transactions.

Due to the uncertainty as to the amount and timing of future exchanges of LLC Units by the Pre-IPO LLC Members and as to the price per share of our Class A common stock at the time of any such exchanges, the unaudited pro forma condensed consolidated financial information does not assume that exchanges of LLC Units have occurred. Therefore, no increases in tax basis in Grayscale Holdings' assets or other tax benefits that may be realized as a result of any such future exchanges have been reflected in the unaudited pro forma condensed consolidated financial information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.Reflects the basic and diluted pro forma net income per share for the six months ended June 30, 2025, and for the year ended December 31, 2024, assuming the shares of Class A common stock in this offering were issued, and other transactions as described herein were consummated, on January 1, 2024, as follows:

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION**

---

| | | |
|:---|:---|:---|
|  | **Grayscale Holdings** | **Grayscale Holdings** |
| **(in thousands, except share and per share amounts)** | **For the Six Months Ended June 30, 2025** | **For the Year Ended December 31, 2024** |
| **Numerator** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to non-controlling interests |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to GSO Intermediate Holdings I Corporation |  |  |
| **Denominator** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares of Class A common stock outstanding – basic |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of dilutive shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares of Class A common stock outstanding – diluted |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pro forma net income per share of Class A common stock – basic |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pro forma net income per share of Class A common stock – diluted |  |  |

---

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Dilu tion** 
If you invest in our Class A common stock, you will experience dilution to the extent of the ‎difference between the initial public offering price per share of our Class A common stock and the ‎pro forma net tangible book value per share of our Class A common stock. Dilution results from the ‎fact that the per share offering price of the Class A common stock is substantially in excess of the ‎pro forma net tangible book value per share attributable to the Pre-IPO LLC Members.‎

We have presented dilution in pro forma net tangible book value per share of Class A common ‎stock to investors in this offering assuming that all of the holders of LLC Units redeemed or ‎exchanged their LLC Units for a corresponding number of newly-issued shares of Class A common ‎stock, or the "Assumed Redemption," in order to more meaningfully present the dilutive impact on the ‎investors in this offering.‎

Our pro forma net tangible book value as of ‎, 2025, would have been approximately ‎$‎ , or $‎ per share of our Class A common stock. Pro forma net tangible book value ‎represents the amount of total tangible assets less total liabilities, and pro forma net tangible book ‎value per share represents pro forma net tangible book value divided by the number of shares of ‎common stock outstanding, in each case after giving effect to the IPO Reorganization, ‎assuming that the Pre-IPO LLC Members redeem or exchange all of their LLC Units and shares of ‎Class B common stock for newly-issued shares of our Class A common stock on a one-for-one ‎basis.‎

After giving effect to the IPO Reorganization, assuming that the Pre-IPO LLC Members ‎redeem or exchange all of their LLC Units for newly-issued shares of our Class A common stock on a ‎one-for-one basis, and after giving effect to the sale of shares of Class A common stock in this ‎offering at the assumed initial public offering price of $‎ per share (the midpoint of the ‎estimated initial price range on the cover page of this prospectus) and the use of the net proceeds ‎from this offering, our pro forma net tangible book value would have been approximately $‎ , or‎ ‎$‎ per share, representing an immediate increase in net tangible book value of $‎ per ‎share to existing stockholders and an immediate dilution in net tangible book value of $‎ per ‎share to new investors.‎

The following table illustrates the per share dilution:

---

| | |
|:---|:---|
| Assumed initial public offering price per share | $|
| Pro forma net tangible book value per share as of , 2025<sup>(1)</sup> | $ |
| Increase in pro forma net tangible book value per share attributable to new<br> investors‎ | $ |
| Pro forma net tangible book value per share after this offering | $|
| Dilution in pro forma net tangible book value per share to new investors | $|

---

------

(1)The computation of pro forma net tangible book value per share as of , 2025, is ‎set forth below:

‎

---

| | |
|:---|:---|
| **‎** | **(in thousands, except per share data)‎** |
| Book value of tangible assets<sup>(a)‎</sup> | $— |
| Less: total liabilities<sup>(a)</sup> |  |
| Pro forma net tangible book value<sup>(a)</sup> |  |
| Shares of Class A common stock outstanding<sup>(a)</sup> |  |
| Pro forma net tangible book value per share | $— |

---

------

(a)Gives pro forma effect to the IPO Reorganization (other than the issuance of Class ‎A common stock to the public pursuant to the offering) and the Assumed Redemption.‎

Dilution is determined by subtracting pro forma net tangible book value per share after ‎this offering from the initial public offering price per share of Class A common stock.‎

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

A $1.00 increase (decrease) in the assumed initial public offering price of $‎ per share ‎would increase (decrease) the dilution per share to new investors by $‎ ‎, in each case ‎assuming the number of shares offered, as set forth on the cover page of this prospectus, remains ‎the same.‎

To the extent the underwriters' option to purchase additional shares of Class A common stock is exercised, there will be further dilution to new investors.

The following table illustrates, as of ‎, 2025, after giving effect to the Assumed ‎Redemption and the sale by us of shares of our Class A common stock in this offering at the initial ‎public offering price of $‎ per share (the midpoint of the estimated initial public offering price ‎range set forth on the cover page of this prospectus), the difference between the existing Pre-IPO ‎LLC Members, and the investors purchasing shares of our Class A common stock in this offering with ‎respect to the number of shares of our common stock purchased from us, the total consideration paid ‎or to be paid to us, and the average price per share paid or to be paid to us, before deducting ‎underwriting discounts and commissions and the estimated offering expenses payable by us:‎

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Shares purchased** |  | **Total consideration** | **Average price** |
|  | **Number** | **Percent** | **Amount** | **Percent** | **Per share** |
| Pre-IPO LLC Members‎ |  | % | $— | —% | $— |
| Investors purchasing shares of our Class<br> A common stock in this offering ‎ |  |  |  |  |  |
| Total |  | 100% | $— | 100% | $— |

---

We may choose to raise additional capital due to market conditions or strategic considerations ‎even if we believe we have sufficient funds for our current or future operating plans. To the extent ‎additional capital is raised through the sale of equity or convertible debt securities, the issuance of ‎these securities could result in further dilution to holders of our Class A common stock.‎

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Management's Discussion and Analysis of Financial Condition and Results of Operations** 
*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and notes thereto, and other financial information, included elsewhere in this prospectus. The following discussion includes forward-looking statements that reflect our plans, estimates and assumptions and involves numerous risks and uncertainties, including, but not limited to, those described in "Risk Factors." See "Special Note Regarding Forward-Looking Statements." Future results could differ significantly from the historical results presented in this section.*

*The historical financial data discussed below reflect the historical results of operations and financial condition of Grayscale Operating, LLC and its consolidated subsidiaries and do not give effect to the IPO Reorganization. See "Organizational Structure" and "Unaudited Pro Forma Condensed Consolidated Financial Information" included elsewhere in this prospectus for a description of the IPO Reorganization and its effect on our historical results of operations.*

## **Business Overview** 
Founded in 2013, Grayscale was among the first to innovate on easy and trusted ways for individuals and institutions to participate in this secular shift. We began by creating regulated and secure investment vehicles to simplify the ownership of digital assets. Over time, our mission evolved: beyond access, we sought to connect capital with the most promising opportunities to help unlock the transformative potential of blockchain technology.

We have been at the forefront of this digital revolution ever since, pioneering the infrastructure that has enabled investors to participate in what is now the fastest-growing asset class in the past decade as compared to other major asset classes, including U.S. equities, gold and U.S. corporate bonds. Grayscale is the largest digital asset-focused investment platform in the world by AUM and offers the broadest selection of digital asset investment products in the U.S. based on number of products. Our platform spans the full spectrum of institutional-grade solutions—from single-asset trusts to diversified and thematic strategies—with a goal of providing every investor with access to the hyper-expanding digital asset universe. As a first-mover, we have become deeply embedded within the digital asset ecosystem and through our platform we work directly with protocol teams to source and structure investment products around what we believe are the most promising emerging protocols.

For the year ended December 31, 2024, we generated $506 million in revenue and $365 million in operating income, representing an operating income margin of 72%. For the six months ended June 30, 2025, we generated $199 million in revenue and $122 million in operating income, representing an operating income margin of 61%. As of June 30, 2025, we manage $30.5 billion in AUM from which we earn management and advisory fees. We have a robust financial profile, and we expect to continue to grow our business over time by attracting more investors to our platform through our diversified portfolio of digital asset-focused investment solutions.

## **IPO Reorganization** 
In connection with this offering, we intend to effect the IPO Reorganization. GSO Intermediate Holdings I Corporation was formed as a Delaware corporation on May 2, 2025 and has not conducted any activities other than those incidental to its formation, the IPO Reorganization and the preparation of this prospectus and the registration statement of which this prospectus forms a part. In connection with this offering, we will complete the IPO Reorganization pursuant to which GSO Intermediate Holdings I Corporation will be renamed to and will become our holding company, and its principal asset will be its ownership interests in Grayscale Operating, LLC. For more information, see "Organizational Structure—The IPO Reorganization" and "Unaudited Pro Forma Condensed Consolidated Financial Information and Other Data" included elsewhere in this prospectus. Upon completion of this offering, all of our business will be conducted through Grayscale Operating, LLC and its consolidated subsidiaries, and the financial results of Grayscale Operating, LLC and its consolidated subsidiaries will be included in the consolidated financial statements of Grayscale Holdings.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **Trends Affecting Our Business** 
Our business is affected by a variety of factors, including conditions in digital asset and financial markets, and economic, regulatory and political conditions. Changes in global economic conditions and regulatory or other governmental policies or actions can materially affect the investment vehicles we offer and manage, as well as our ability to grow our business through new investment solutions. We believe our disciplined product development and research processes and regulatory and compliance frameworks have historically contributed to strong growth throughout digital asset market cycles.

Our results of operations may be influenced by several factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•***Accelerating demand for digital assets.*** Our ability to attract investment and inflows into our digital asset products is dependent on the adoption of digital assets by individual and institutional investors and the use cases for digital assets, including store of value and commercial applications. We believe there are trends driving investor demand for digital assets, including improving regulatory clarity, expanding range of investment products across strategy, vehicle and liquidity characteristics and advancements in blockchain technology. However, digital assets are a new asset class that represent a technological innovation subject to a high degree of uncertainty, and investors' demand for digital assets may fluctuate or slow, which would negatively impact our business and operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•***The price and volatility of digital assets.*** The price of digital assets directly impacts the dollar value of management fees earned from our investment products, which are generally denominated in the digital asset underlying the investment product. In addition, in times of uncertainty for the digital asset industry, exogenous events, changes in investor confidence and resultant fluctuations in the price of digital assets may trigger inflows or outflows from our investment products, impacting our AUM and management fee revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•***The attractiveness of our product offerings to a broad and evolving investor base.*** Individual and institutional investors have varying levels of digital asset expertise and are in different stages of their digital asset investment journey. Our success depends on our ability to expand and diversify our investment platform to attract an evolving investor base as we see increasing interest and demand for digital asset investments across all clients that we serve, particularly institutional clients, as the asset class experiences increased regulatory clarity and institutionalization. We expect product development to be critical to our growth efforts, and our operating results will depend on our ability to develop, market and manage new investment products that are attractive to investors. Our long-term strategy is centered on doubling-down on our private funds franchise, building on the success of our ETP and ETF product suite, and expanding our active business. Each of these is focused on expanding and diversifying our investment platform across both passive and active strategies, enabling us to meet investors where they are in their digital asset journey and unlock new opportunities. We believe our extensive track record of pioneering access to disruptive, next-generation digital asset tokens for retail and institutional capital is representative of our adaptability and focus on delivering products that our clients seek exposure to, but our new investment products may fail to attract investor demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•***Our ability to maintain our competitive advantage relative to competitors.*** We face market pressures regarding management fee levels in our investment products, which could impact our revenues as well as our AUM. As emerging competitors enter the market following recent regulatory clarity, our ability to maintain our fees and advantage is dependent on a number of factors, including our timing in entering new markets relative to competing ETPs or other digital asset products, our competitors offering lower fee investment products, our ability to expand our distribution capabilities and retaining and developing our talent. Further, we face competition with respect to the creation of new investment products and the enhancement of existing investment products. Our strategy is to leverage our deeply-embedded presence in the digital asset ecosystem, specialized client engagement professionals and portfolio consultants and prolific investment research to competitively price our products and services, create new products for attractive new digital assets with our digital asset investment platform and enhance existing products. If we are unable to compete through the development of new and existing investment products or if fee pressure increases more rapidly than we anticipate, our operating results may be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•***Increasing regulatory requirements and political uncertainty.*** The complex and changing regulatory environment could impact our operations and subject us to increased compliance and administrative costs.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Our business is subject to the oversight of numerous regulatory agencies in the U.S. and other jurisdictions, including, but not limited to, the SEC, FINRA and the CFTC. Our strategy is to continue to invest in our finance, legal, compliance, risk and security functions to remain at the forefront of digital asset policy initiatives and regulatory trends. We may experience fluctuations in our operating results as a result of changes in the law and regulations that are applicable to our business, which may limit our ability to develop new investment products or enhance existing investment products.

## **Key Operating Metrics** 
***Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024***

***Assets Under Management***

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **(in millions)** | **(in millions)** |
| **GBTC** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period assets | $19187.1 | $26352.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows/(outflows), net | (1752.0) | (18514.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Market appreciation/(depreciation) | 2516.0 | 9238.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period assets | $19951.1 | $17076.5 |
| **ETHE** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period assets | $4740.7 | $6757.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows/(outflows), net | (664.3) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Market appreciation/(depreciation) | (1237.4) | 3258.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period assets | $2839.0 | $10016.3 |
| **Other ETPs and ETFs** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period assets | $5125.5 | $7.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows/(outflows), net | 767.1 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Market appreciation/(depreciation) | 207.9 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period assets | $6100.5 | $8.5 |
| **Private Funds** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period assets | $1705.8 | $894.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows/(outflows), net | 113.4 | 131.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Market appreciation/(depreciation) | (191.9) | 184.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period assets | $1627.3 | $1210.5 |
| **Total assets under management** | $**30517.9** | $**28311.8** |

---

As of June 30, 2025, Grayscale had AUM of $30,517.9 million consisting of $19,951.1 million in GBTC, $2,839.0 million in ETHE, $6,100.5 million in other ETPs and ETFs, and $1,627.3 million in Private Funds.

*GBTC*

Assets under management in GBTC at June 30, 2025 increased 4.0% to $19,951.1 million from $19,187.1 million at December 31, 2024. The change was primarily due to market appreciation of $2,516.0 million, partially offset by net outflows of $1,752.0 million.

Assets under management in GBTC at June 30, 2024 decreased 35.2% to $17,076.5 million from $26,352.5 million at December 31, 2023. The change was primarily due to net outflows of $18,514.8 million following GBTC uplisting to NYSE Arca as an ETP on January 11, 2024, partially offset by market appreciation of $9,238.8 million.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Prior to uplisting to NYSE Arca as an ETP, there was no redemption mechanism for GBTC, and, as a result, shares of GBTC traded at a discount to the NAV per share on OTCQX. Upon uplisting to NYSE Arca, GBTC was permitted to redeem its shares, and GBTC's authorized participants were able to earn a profit by purchasing GBTC shares at a discount to NAV and redeeming them for Bitcoin, resulting in outflows. Following the uplisting to NYSE Arca, the shares of GBTC trade closely to the NAV per share, and, as a result, the Company does not expect historical outflows during this period to be indicative of future flows. Additionally, in connection with GBTC uplisting to NYSE Arca as an ETP, several other lower cost spot Bitcoin ETPs also launched, and some investors sold or redeemed their shares of GBTC for either lower-fee alternatives or to reduce their exposure to digital assets at that time.

*ETHE*

Assets under management in ETHE at June 30, 2025 decreased 40.1% to $2,839.0 million from $4,740.7 million at December 31, 2024. The change was primarily due to market depreciation of $1,237.4 million and net outflows of $664.3 million.

Assets under management in ETHE at June 30, 2024 increased 48.2% to $10,016.3 million from $6,757.6 million at December 31, 2023. The change was due to market appreciation of $3,258.7 million.

*Other ETPs and ETFs*

Assets under management in other ETPs and ETFs at June 30, 2025 increased 19.0% to $6,100.5 million from $5,125.5 million at December 31, 2024. The change was primarily due to net inflows of $767.1 million and market appreciation of $207.9 million.

Assets under management in other ETPs and ETFs at June 30, 2024 increased 11.8% to $8.5 million from $7.6 million at December 31, 2023. The change was primarily due to net inflows of $0.5 million and market appreciation of $0.4 million.

*Private Funds*

Assets under management in Private Funds at June 30, 2025 decreased 4.6% to $1,627.3 million from $1,705.8 million at December 31, 2024. The change was primarily due to market depreciation of $191.9 million, partially offset by net inflows of $113.4 million across several products.

Assets under management in Private Funds at June 30, 2024 increased 35.4% to $1,210.5 million from $894.0 million at December 31, 2023. The change was primarily due to market appreciation of $184.9 million and net inflows of $131.6 million, which included $86.9 million of net inflows into Grayscale Bitcoin Cash Trust ("BCHG"), Grayscale Litecoin Trust ("LTCN") and Grayscale Solana Trust ("GSOL").

***Weighted Average Management Fee***

Our weighted-average management fee rate was 1.41% for the six months ended June 30, 2025 compared to 1.84% for the six months ended June 30, 2024. The decrease in management fees period over period was primarily

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

driven by lower average AUM in GBTC and ETHE due to net outflows and the distributions to BTC Mini and ETH Mini, respectively, which resulted in the lower weighted-average management fee rate.

***Year Ended December 31, 2024 Compared to Year Ended December 31, 2023***

***Assets Under Management***

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  | **(in millions)** | **(in millions)** |
| **GBTC** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period assets | $26352.5 | $10467.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to BTC Mini<sup>(1)</sup> | (1756.8) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows/(outflows), net | (21496.4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Market appreciation/(depreciation) | 16087.8 | 15885.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period assets | $19187.1 | $26352.5 |
| **ETHE** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period assets | $6757.6 | $3635.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to ETH Mini<sup>(1)</sup> | (1010.9) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows/(outflows), net | (3640.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Market appreciation/(depreciation) | 2634.2 | 3122.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period assets | $4740.7 | $6757.7 |
| **Other ETPs and ETFs** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period assets | $7.6 | $3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution from GBTC and ETHE to BTC Mini and ETH Mini<sup>(1)</sup> | 2767.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Product closure | (10.4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows/(outflows), net | 1419.8 | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Market appreciation/(depreciation) | 940.8 | 4.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period assets | $5125.5 | $7.6 |
| **Private Funds** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period assets | $894.0 | $514.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows/(outflows), net | 219.5 | 9.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Market appreciation/(depreciation) | 592.3 | 369.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period assets | $1705.8 | $894.0 |
| **Total assets under management** | $**30759.1** | $**34011.8** |

---

------

(1)Represents the distribution of 26,935.83753443 Bitcoin, with a value of approximately $1,756.8 million from GBTC to BTC Mini, completed on July 31, 2024, as well as the distribution of 292,262.98913350 Ether, with a value of approximately $1,010.9 million from ETHE to ETH Mini, completed on July 23, 2024.

As of December 31, 2024, Grayscale had AUM of $30,759.1 million consisting of $19,187.1 million in GBTC, $4,740.7 million in ETHE, $5,125.5 million in other ETPs and ETFs, and $1,705.8 million in Private Funds.

*GBTC*

Assets under management in GBTC at December 31, 2024 decreased 27.2% to $19,187.1 million from $26,352.5 million at December 31, 2023. The change was primarily due to net outflows of $21,496.4 million following GBTC uplisting to NYSE Arca as an ETP on January 11, 2024 and the distribution of Bitcoin to BTC Mini with an approximate value of $1,756.8 million, partially offset by market appreciation of $16,087.8 million. Prior to uplisting

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

to NYSE Arca as an ETP, there was no redemption mechanism for GBTC, and, as a result, shares of GBTC traded at a discount to the NAV per share on OTCQX. Upon uplisting to NYSE Arca, GBTC was permitted to redeem its shares, and GBTC's authorized participants were able to earn a profit by purchasing GBTC shares at a discount to NAV and redeeming them for Bitcoin, resulting in outflows. Following the uplisting to NYSE Arca, the shares of GBTC trade closely to the NAV per share, and, as a result, the Company does not expect historical outflows during this period to be indicative of future flows. Additionally, in connection with GBTC uplisting to NYSE Arca as an ETP, several other lower cost spot Bitcoin ETPs also launched, and some investors sold or redeemed their shares of GBTC for either lower-fee alternatives or to reduce their exposure to digital assets at that time.

Assets under management in GBTC at December 31, 2023 increased 151.8% to $26,352.5 million from $10,467.2 million at December 31, 2022. The change was due to market appreciation of $15,885.3 million.

*ETHE*

Assets under management in ETHE at December 31, 2024 decreased 29.8% to $4,740.7 million from $6,757.6 million at December 31, 2023. The change was primarily due to net outflows of $3,640.2 million resulting from ETHE uplisting to NYSE Arca as an ETP on July 23, 2024 and the distribution of Ether to ETH Mini with an approximate value of $1,010.9 million, partially offset by market appreciation of $2,634.2 million. Prior to uplisting to NYSE Arca as an ETP, there was no redemption mechanism for ETHE, and, as a result, shares of ETHE traded at a discount to the NAV per share on OTCQX. Upon uplisting to NYSE Arca, ETHE was permitted to redeem its shares, and ETHE's authorized participants were able to earn a profit by purchasing ETHE shares at a discount to NAV and redeeming them for Ether, resulting in outflows. Following the uplisting to NYSE Arca, the shares of ETHE trade closely to the NAV per share, and, as a result, the Company does not expect historical outflows during this period to be indicative of future flows. Additionally, in connection with ETHE uplisting to NYSE Arca as an ETP, several other lower cost spot Ether ETPs also launched, and some investors sold or redeemed their shares of ETHE for either lower-fee alternatives or to reduce their exposure to digital assets at that time.

Assets under management in ETHE at December 31, 2023 increased 85.9% to $6,757.7 million from $3,635.2 million at December 31, 2022. The change was due to market appreciation of $3,122.5 million.

*Other ETPs and ETFs*

Assets under management in other ETPs and ETFs at December 31, 2024 increased to $5,125.5 million from $7.6 million at December 31, 2023. The change was primarily due to the distribution of Bitcoin from GBTC to launch BTC Mini and the distribution of Ether from ETHE to launch ETH Mini, net inflows of $1,419.8 million into BTC Mini and ETH Mini, and market appreciation of $940.8 million.

Assets under management in other ETPs and ETFs at December 31, 2023 increased 123.5% to $7.6 million from $3.4 million at December 31, 2022, primarily driven by market appreciation of $4.4 million.

*Private Funds*

Assets under management in Private Funds at December 31, 2024 increased 90.8% to $1,705.8 million from $894.0 million at December 31, 2023. The change was primarily due to market appreciation of $592.3 million and net inflows of $219.5 million, which included $136.8 million of net inflows into BCHG, LTCN and GSOL.

Assets under management in Private Funds at December 31, 2023 increased 73.7% to $894.0 million from $514.8 million at December 31, 2022, primarily driven by market appreciation of $369.8 million.

***Weighted Average Management Fee***

Our weighted-average management fee rate was 1.61% for the year ended December 31, 2024 compared to 2.13% for the year ended December 31, 2023. The decrease in management fees year over year was primarily driven

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

by lower average AUM in GBTC and ETHE due to net outflows and the distributions to BTC Mini and ETH Mini, respectively, which resulted in the lower weighted-average management fee rate.

## **Components of Our Results of Operations** 
***Revenues***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our revenues are comprised of management fees we earn from GBTC, ETHE, our other ETPs and ETFs, and Private Funds. These management fees are calculated based on a percentage of GBTC, ETHE, the ETPs and ETFs, and Private Funds' average daily net assets. As of June 30, 2025, the range of management fee rates by product category are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•GBTC and ETHE: 150 - 250bps

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Other ETPs and ETFs: 15 - 65bps

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Private Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪Passive: 250bps

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪Active: 50bps + 10% incentive allocation

Our revenues for the period may fluctuate based on our weighted-average management fee rates, market value appreciation or depreciation, and the level of inflows or outflows from our products.

***Operating Expenses***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Employee compensation and benefits includes the salaries, bonuses, and related benefits and payroll costs attributable to our employees. Compensation and benefits packages are benchmarked against relevant industry and geographic peer groups in order to attract and retain qualified personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Stock-based compensation includes costs related to equity awards granted to our employees. Our management and board of directors believe that equity awards are an important part of our employees' overall compensation package and that incentivizing our employees with equity in the Company aligns the interests of our employees with that of our stockholders. As of June 30, 2025, all stock-based compensation expense recognized relate to awards granted to our employees pursuant to the Digital Currency Group, Inc. 2016 Stock Plan ("DCG Plan"), which references the shares of DCG, not the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Professional fees consist of fees we pay to corporate advisers including accountants, tax advisers, legal counsel, or other consultants. Professional fees also include sponsor-paid expenses for third-party service providers to operate our products, including custodian fees, index provider fees, ETF sub-advisor fees and fund administrator fees. These expenses fluctuate based on our needs or our requirements at the time and/or levels of assets under management. Certain of these costs are at our discretion and can fluctuate year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Marketing expenses include advertising and product promotion campaigns that are initiated to promote our existing and new products and ETPs/ETFs, as well as brand awareness, development and maintenance of our website and creation and preparation of marketing materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•General, administrative and other expenses primarily consist of lease and office overhead expenses, regulatory and filing fees, recruiting fees, as well as other data-related costs.

***Other Income***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Other income includes realized and unrealized gains (losses), dividend income and other income. Realized and unrealized gains (losses) are derived by the monetization of management fees received as non-cash consideration in the form of digital asset tokens, as well as fluctuations in the Company's holdings of

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

digital assets, digital asset trusts and funds and equity investments in portfolio companies. Dividend income is recognized on an ex-dividend basis when the right to receive payment is established.

## **Results of Operations** 
***Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024***

***Selected Operating and Financial Information***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |  |  |
|  | **2025** | **2024** | **Change** | **Percent Change** |
| **AUM (in millions)** |  |  |  |  |
| Average AUM | $28376 | $32328 | $(3952) | (12.2)% |
| **U.S. GAAP Operating Results (in thousands)** |  |  |  |  |
| Revenue | $198775 | $296514 | $(97739) | (33.0)% |
| Expenses | $76568 | $74660 | $1908 | 2.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | 26389 | 22104 | 4285 | 19.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 806 | 1289 | (483) | (37.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 27188 | 20702 | 6486 | 31.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing | 12644 | 20729 | (8085) | (39.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;General, administrative and other | 9541 | 9836 | (295) | (3.0)% |
| Operating income | $122207 | $221854 | $(99647) | (44.9)% |
| Operating margin | 61.5% | 74.8% |  |  |
| **As Adjusted**<sup>(1)</sup> |  |  |  |  |
| Adjusted Operating Income | $129460 | $227541 | $(98082) | (43.1)% |

---

------

(1)Refer to "Non-GAAP Financial Measures" below for reconciliations of U.S. GAAP to as adjusted results.

***Revenues***

Management fees decreased 33.0% to $198.8 million for the six months ended June 30, 2025 from $296.5 million for the six months ended June 30, 2024. Management fees earned from GBTC, ETHE, ETPs and ETFs, and Private Funds, were $138.3 million, $37.5 million, $3.7 million, and $19.2 million, respectively, for the six months ended June 30, 2025.

Management fees earned from GBTC, ETHE, ETPs and ETFs, and Private Funds, were $166.8 million, $114.7 million, less than $0.1 million, and $15.0 million, respectively, for the six months ended June 30, 2024. Our weighted-average management fee rate was 1.41% for the six months ended June 30, 2025 compared to 1.84% for the six months ended June 30, 2024. The decrease in management fees period over period was primarily driven by lower average AUM in GBTC and ETHE due to net outflows and the distributions to BTC Mini and ETH Mini, respectively, which resulted in the lower weighted-average management fee rate. This decrease was partially offset by price appreciation resulting in an increase in average AUM across products.

Effective July 23, 2024, the Company waived a portion of the sponsor's fee for the first six months of ETH Mini's operations, so that the fee was 0% of the net asset value ("NAV") of the trust for the first $2.0 billion of the trust's assets. Following the expiration date of the six-month waiver period on January 23, 2025 (the "Sponsor's Fee Waiver Expiration Date"), the sponsor's fee is 0.15%. For the period from the Sponsor's Fee Waiver Expiration Date through June 30, 2025, the Company earned management fees of $0.7 million from ETH Mini.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Operating Expenses***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |  |  |
|  | **2025** | **2024** | **Change** | **Percent Change** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Employee compensation and benefits | $26389 | $22104 | $4285 | 19.4% |
| Stock-based compensation | 806 | 1289 | (483) | (37.5)% |
| Professional fees | 27188 | 20702 | 6486 | 31.3% |
| Marketing | 12644 | 20729 | (8085) | (39.0)% |
| General, administrative and other | 9541 | 9836 | (295) | (3.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $76568 | $74660 | $1908 | 2.6% |

---

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| **As a Percent of Revenue:** | **2025** | **2024** |
| Employee compensation and benefits | 13.3% | 7.5% |
| Stock-based compensation | 0.4% | 0.4% |
| Professional fees | 13.7% | 7.0% |
| Marketing | 6.4% | 7.0% |
| General, administrative and other | 4.8% | 3.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 38.5% | 25.2% |

---

*Employee compensation and benefits*

Employee compensation and benefits expense increased 19.4% to $26.4 million for the six months ended June 30, 2025 from $22.1 million for the six months ended June 30, 2024 primarily due to an increase in employee headcount. Headcount was 124 and 105 at June 30, 2025 and 2024, respectively. The increase in employee headcount reflects investment in the sales and distribution team as well as scaling of all key organizational functions to support the launch and maintenance of an expanding product suite.

*Stock-based compensation*

Stock-based compensation expense decreased 37.5% to $0.8 million for the six months ended June 30, 2025 from $1.3 million for the six months ended June 30, 2024 primarily due to a decrease in the number of awards subject to vesting pursuant to the DCG Plan during the respective periods.

*Professional fees*

Professional fees increased 31.3% to $27.2 million for the six months ended June 30, 2025 from $20.7 million for the six months ended June 30, 2024 primarily due to an increase in accounting fees and an increase in expenses related to the initial public offering process, as well as an increase in index provider fees and other professional fees related to the increase in the number of Grayscale products.

*Marketing expense*

Marketing expense decreased 39.0% to $12.6 million for the six months ended June 30, 2025 from $20.7 million for the six months ended June 30, 2024 due to higher marketing spending in 2024 related to promoting the uplisting of GBTC.

*General, administrative and other*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

General and administrative expenses decreased 3.0% to $9.5 million for the six months ended June 30, 2025 from $9.8 million for the six months ended June 30, 2024 primarily due to a decrease in trading fees and regulatory expenses, partially offset by an increase in data-related costs.

***Other Income (Loss)***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |  |  |
|  | **2025** | **2024** | **Change** | **Percent Change** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Realized and unrealized (losses) gains, net | $(416) | $1213 | $(1629) | (134.3)% |
| Dividend income | 1243 | 1735 | (492) | (28.4)% |
| Other revenue | 176 | 85 | 91 | 107.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income | $1003 | $3033 | $(2030) | (66.9)% |

---

Other income decreased 66.9% to $1.0 million for the six months ended June 30, 2025 from $3.0 million for the six months ended June 30, 2024 primarily resulting from the change in realized and unrealized (losses) gains, net. Realized and unrealized (losses) gains, net of $(0.4) million decreased by $1.6 million, or 134.3%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily resulting from the timing of monetizing our management fees received in digital assets and the related digital asset price movements.

***Provision for Income Taxes***

Our effective income tax rate for the six months ended June 30, 2024 was 24.1%, resulting in an income tax expense of $54.1 million. For the six months ended June 30, 2025, the Company did not make a provision for federal or state income taxes because, effective as of the Pre-IPO Reorganization completed on January 1, 2025, it is a limited liability company that has elected to be treated as a partnership for tax purposes, and it is the individual responsibility of each of the Company's members to separately report their proportionate share of the Company's taxable income or loss. The Company made a provision for New York City Unincorporated Business Tax in the amount of approximately $0.8 million for the six months ended June 30, 2025.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Year Ended December 31, 2024 Compared to Year Ended December 31, 2023***

***Selected Operating and Financial Information***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |  |  |
|  | **2024** | **2023** | **Change** | **Percent Change** |
| **AUM (in millions)** |  |  |  |  |
| Average AUM | $31459 | $24094 | $7365 | 30.6% |
| **U.S. GAAP Operating Results (in thousands)** |  |  |  |  |
| Revenue | $506157 | $512707 | $(6550) | (1.3)% |
| Expenses | $140792 | $100164 | $40628 | 40.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | 43878 | 25701 | 18177 | 70.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 2563 | 12725 | (10162) | (79.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for related party receivables |  | 869 | (869) | (100.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 42309 | 31035 | 11274 | 36.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing | 32847 | 19274 | 13573 | 70.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;General, administrative and other | 19195 | 10560 | 8635 | 81.8% |
| Operating income | $365365 | $412543 | $(47178) | (11.4)% |
| Operating margin | 72.2% | 80.5% |  |  |
| **As Adjusted**<sup>(1)</sup> |  |  |  |  |
| Adjusted Operating Income | $377584 | $427204 | $(50353) | (11.8)% |

---

------

(1)Refer to "Non-GAAP Financial Measures" below for reconciliations of U.S. GAAP to as adjusted results.

***Revenues***

Management fees decreased 1.3% to $506.2 million for the year ended December 31, 2024 from $512.7 million for the year ended December 31, 2023. Management fees earned from GBTC, ETHE, ETPs and ETFs, and Private Funds were $290.4 million, $182.4 million, $1.6 million, and $31.7 million, respectively, for the year ended December 31, 2024. Management fees earned from GBTC, ETHE, ETPs and ETFs, and Private Funds were $360.6 million, $134.5 million, less than $0.1 million, and $17.6 million, respectively, for the year ended December 31, 2023. Our weighted-average management fee rate was 1.61% for the year ended December 31, 2024 compared to 2.13% for the year ended December 31, 2023.

The decrease in management fees year over year was primarily driven by lower average AUM in GBTC and ETHE due to net outflows and the distributions to BTC Mini and ETH Mini, respectively, which resulted in the lower weighted-average management fee rate. This decrease was partially offset by price appreciation resulting in an increase in average AUM across products.

In addition, effective July 23, 2024, the Company waived a portion of the sponsor's fee for the first six months of ETH Mini's operations, so that the fee was 0% of the NAV of the trust for the first $2.0 billion of the trust's assets. As of December 31, 2024, the trust's assets did not exceed $2.0 billion and no management fees had been earned.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Operating Expenses***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |  |  |
|  | **2024** | **2023** | **Change** | **Percent Change** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Employee compensation and benefits | $43878 | $25701 | $18177 | 70.7% |
| Stock-based compensation | 2563 | 12725 | (10162) | (79.9)% |
| Provision for related party receivables |  | 869 | (869) | (100)% |
| Professional fees | 42309 | 31035 | 11274 | 36.3% |
| Marketing | 32847 | 19274 | 13573 | 70.4% |
| General, administrative and other | 19195 | 10560 | 8635 | 81.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $140792 | $100164 | $40628 | 40.6% |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
| **As a Percent of Revenue:** | **2024** | **2023** |
| Employee compensation and benefits | 8.7% | 5.0% |
| Stock-based compensation | 0.5% | 2.5% |
| Provision for related party receivables | 0% | 0.2% |
| Professional fees | 8.4% | 6.1% |
| Marketing | 6.5% | 3.8% |
| General, administrative and other | 3.8% | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 27.8% | 19.5% |

---

*Employee compensation and benefits*

Employee compensation and benefits expense increased 70.7% to $43.9 million for the year ended December 31, 2024 from $25.7 million for the year ended December 31, 2023 due to an increase in headcount and incentive compensation. Headcount was 116 and 73 at December 31, 2024 and 2023, respectively. The increase in employee headcount reflects investment in the sales and distribution team as well as scaling of all key organizational functions to support the launch and maintenance of an expanding product suite.

*Stock-based compensation*

Stock-based compensation expense decreased 79.9% to $2.6 million for the year ended December 31, 2024 from $12.7 million for the year ended December 31, 2023 primarily due to the change in the intrinsic value of the underlying awards under the DCG Plan.

*Provision for related party receivables*

Provision for related party receivables was $0.9 million for the year ended December 31, 2023 related to digital asset loans to Genesis Capital, a wholly owned subsidiary of DCG. The Company assessed the likelihood of recognizing benefit from certain digital asset loans due from its affiliates and determined recognition of a reserve on all amounts due from Genesis Capital to be appropriate. The Company did not recognize a provision for the year ended December 31, 2024.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

*Professional fees*

Professional fees increased 36.3% to $42.3 million for the year ended December 31, 2024 from $31.0 million for the year ended December 31, 2023 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increase in legal fees related to the uplisting of GBTC and ETHE to NYSE Arca and the initial distribution of BTC Mini and ETH Mini;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increase in accounting fees related to the audits completed for the Company as well as an increase in the number of Grayscale products requiring audit and tax services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increase in sponsor-paid expenses for the Company's investment products, including custodian fees, index provider, ETF sub-advisor fees, and fund administrator fees related to an increase in the number of products and the level of assets under management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•increase in professional fees related to the initial public offering process.

*Marketing expense*

Marketing expense increased 70.4% to $32.8 million for the year ended December 31, 2024 from $19.3 million for the year ended December 31, 2023 primarily resulting from higher spending related to promoting the uplisting of GBTC and ETHE to NYSE Arca and an increase in brand advertising.

*General, administrative and other*

General and administrative expenses increased 81.8% to $19.2 million for the year ended December 31, 2024 from $10.6 million for the year ended December 31, 2023 primarily resulting from an increase in lease and office overhead expenses, regulatory and filing fees, trading fees, recruiting fees, and data-related costs.

***Other Income (Loss)***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |  |  |
|  | **2024** | **2023** | **Change** | **Percent Change** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Realized and unrealized gains, net | $2490 | $18107 | $(15617) | (86.3)% |
| Dividend income | 3812 | 1606 | 2206 | 137.4% |
| Other revenue | 61 | 330 | (269) | (81.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income | $6363 | $20043 | $(13680) | (68.3)% |

---

Other income decreased 68.3% to $6.4 million for the year ended December 31, 2024 from $20.0 million for the year ended December 31, 2023 primarily resulting from the change in realized and unrealized (losses) gains, net. Realized and unrealized gains, net of $2.5 million decreased by $15.6 million, or 86.3%, for the year ended December 31, 2024 compared to the year ended December 31, 2023 primarily resulting from the timing of monetizing our management fees received in digital assets and the related digital asset price movements. In addition, dividend income increased to $3.8 million for the year ended December 31, 2024 from $1.6 million for the year ended December 31, 2023 primarily resulting from a higher average cash balance year over year and optimization of treasury functions.

***Provision for Income Taxes***

Our effective income tax rate for 2024 was 24.1%, resulting in an income tax expense of $89.6 million. Our effective income tax rate for 2023 was 24.9%, resulting in income tax expense of $107.6 million.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **Non-GAAP Financial Measures** 
Adjusted Operating Income is a non-GAAP financial measure that is used by management, in addition to GAAP financial measures, to understand and compare our operating results across accounting periods, for risk management and operational decision-making.

Adjusted Operating Income provides investors with additional information in evaluating the Company's operating performance. This non-GAAP financial measure has been prepared by, and is the responsibility of, Grayscale's management, and has not been audited or reviewed by our independent registered public accounting firm. This non-GAAP financial measurement should be considered in context with our GAAP results.

We believe Adjusted Operating Income, a non-GAAP financial performance measure, is useful information to help investors evaluate our operating performance because it enables investors to compare this measure and component adjustments to our past financial performance and provides additional company-specific adjustments for certain items that may be included in income from operations but that we do not consider to be normal, recurring, operating expenses (or income) necessary to operate our business. We believe Adjusted Operating Income is useful to measure our operating performance without regard to items such as stock-based compensation expense, realized and unrealized gains (losses), net, and provision for income taxes that can vary significantly from period to period and may not directly correlate to the underlying performance of our business operations.

Adjusted Operating Income is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. It excludes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•stock-based compensation expense, a non-cash expense, which we expect to continue to be a significant recurring expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•provision for income taxes, which may vary significantly year over year related to corporate restructuring;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•realized and unrealized gains (losses), net, which may vary significantly period to period due to the timing of management fee monetization and the volatility of digital asset prices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•non-recurring executive transition-related charges associated with changes to key executive team members, which we do not expect to be recurring; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•non-recurring listing expenses related to the Pre-IPO Reorganization and initial public offering process of the Company.

The following table provides a reconciliation of net income to Adjusted Operating Income:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
| Net income, as reported | $122369 | $170767 |
| Adjusted to exclude the following: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 806 | 1289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring executive transition-related charges | 2608 | 2578 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring listing expenses | 2420 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized and unrealized losses (gains), net | 416 | (1213) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 841 | 54120 |
| Adjusted Operating Income | $129460 | $227541 |

---

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  | **(in thousands)** | **(in thousands)** |
| Net income, as reported | $282149 | $324953 |
| Adjusted to exclude the following: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 2563 | 12725 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring executive transition-related charges | 4392 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-recurring listing expenses | 1391 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized and unrealized (gains), net | (2490) | (18107) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 89579 | 107633 |
| Adjusted Operating Income | $377584 | $427204 |

---

## **Liquidity and Capital Resources** 
Our principal sources of liquidity are our cash and cash equivalents and cash flows from operating activities. Cash and cash equivalents totaled $98.7 million and $100.2 million as of June 30, 2025 and December 31, 2024, respectively, exclusive of restricted cash, and primarily consisted of cash on hand, cash on trading platforms, cash held at brokers, demand deposits, money market funds and short-term highly liquid investments with original maturities of three months or less. Cash flows from operating activities were $289.2 million and $152.4 million for the years ended December 31, 2024 and 2023, respectively. Cash flows from operating activities were $110.0 million and $160.2 million for the six months ended June 30, 2025 and 2024, respectively.

We intend to use the net proceeds that we receive from this offering to purchase LLC Units from the Pre-IPO LLC Members at a purchase price per LLC Unit equal to the initial public offering price per share of Class A common stock after underwriting discounts and commissions. Accordingly, we will not receive any proceeds from the purchase of LLC Units from the Pre-IPO LLC Members by us.

Our principal liquidity needs have been, and we expect them to continue to be, primarily related to employee compensation and benefits and payments owed to vendors and third parties in the normal course of business for operating expenses.

We do not currently have any material debt obligations; however we do have future minimum operating lease payments that are further detailed in the notes to our financial statements included within this prospectus. Further, in connection with the IPO Reorganization, we may incur additional liabilities as a result of the Tax Receivable Agreement.

We currently anticipate that our cash and cash equivalents, together with anticipated cash flows from operating activities, will be sufficient to meet our operational cash needs for the foreseeable future.

Our future capital requirements will depend on many factors, including investor demand for digital assets, any acquisitions or investments we may make from time to time, continuing market acceptance of our products, expansion of sales and marketing activities and overall economic conditions. To the extent that current and anticipated future sources of liquidity are insufficient to fund our future business activities and requirements, we may be required to seek additional equity or debt financing. The sale of additional equity would result in additional dilution to our stockholders. The incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations. In the event that additional financing is required from outside sources, there is a possibility we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, operating results, and financial condition could be adversely affected.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Credit Agreement***

On May 15, 2023, we entered into an amended Coinbase Post-Trade Financing Agreement with Coinbase Credit, Inc. (the "Credit Agreement") providing for a $45 million post-trade line of credit which may be drawn upon at any time. The Credit Agreement provides for the extension of trading credits used in connection with intraday trading of digital assets on Coinbase's trading platform. Trading credits are settled by way of delivery of the applicable digital assets traded and are typically settled within one business day of the trade order. Borrowings under the Credit Agreement bear interest at a fixed rate of 0.04% simple interest per calendar day to be paid on the basis of the aggregate maximum amount drawn by the Company in the same type of digital asset for which the post-trade line of credit was utilized. As of June 30, 2025 and December 31, 2024, there were no amounts outstanding under the Credit Agreement.

***Cash Flows***

The following table reflects our changes in cash flows for the six months ended June 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
|  | **(in thousands)** | **(in thousands)** |
| Net cash provided by (used in) operating activities | $110014 | $160247 |
| Net cash provided by (used in) investing activities | (321) | (707) |
| Net cash provided by (used in) financing activities | (111156) | (151903) |
| Net change in cash and cash equivalents | $(1463) | $7637 |

---

*Operating activities*

Net cash provided by operating activities was $110.0 million for the six months ended June 30, 2025. Our net cash provided by operating activities reflected net income of $122.4 million and non-cash adjustments of $2.8 million, which primarily consisted of $162.9 million in proceeds from sale of digital assets, $0.8 million of stock-based compensation, and $0.7 million in unrealized losses on investments in digital asset trusts and funds. This was partially offset by $(162.6) million in revenue recognized from management fees and $(0.7) million in realized (gains) on sale of digital assets, net. In addition to these changes were changes in operating assets and liabilities of $(15.2) million.

Net cash provided by operating activities was $160.2 million for the six months ended June 30, 2024. Our net cash provided by operating activities reflected net income of $170.8 million and non-cash adjustments of $47.8 million, which primarily consisted of $257.8 million in proceeds from sale of digital assets, net and $54.1 million provision for income taxes. This was partially offset by $(264.5) million in revenue recognized from management fees and $(1.2) million in realized (gains) on sale of digital assets, net. In addition to these changes were changes in operating assets and liabilities of $(58.3) million.

*Investing activities*

Net cash used in investing activities of $(0.3) million for the six months ended June 30, 2025, which consisted of $(0.2) million and $(0.1) million in purchases of equipment and purchases of investments in digital asset trusts and funds, respectively.

Net cash used in investing activities of $(0.7) million for the six months ended June 30, 2024 primarily related to $(0.4) million and $(0.3) million in purchases of equipment and purchases of investments in digital asset trusts and funds, respectively.

*Financing activities*

Net cash used in financing activities of $(111.2) million for the six months ended June 30, 2025, which consisted of $(111.2) million in distributions to affiliates.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Net cash used in financing activities of $(151.9) million for the six months ended June 30, 2024, which consisted of $(151.9) million in distributions to DCG.

***Cash Flows***

The following table reflects our changes in cash flows for the years ended December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
|  | **(in thousands)** | **(in thousands)** |
| Net cash provided by (used in) operating activities | $289193 | $152361 |
| Net cash provided by (used in) investing activities | (1185) | (1789) |
| Net cash provided by (used in) financing activities | (299298) | (44806) |
| Net change in cash and cash equivalents | $(11290) | $105766 |

---

*Operating activities*

Net cash provided by operating activities was $289.2 million for the year ended December 31, 2024. Our net cash provided by operating activities reflected net income of $282.2 million, non-cash adjustments of $5.1 million, which primarily consisted of $507.7 million in proceeds from sale of digital assets, $2.8 million in deferred income tax benefit, net, and $2.6 million in stock-based compensation. This was partially offset by $(506.1) million in revenue recognized from management fees. In addition to these changes were changes in operating assets and liabilities of $1.9 million.

Net cash provided by operating activities was $152.4 million for the year ended December 31, 2023. Our net cash provided by operating activities reflected net income of $325 million, offset by non-cash adjustments of $(215.4) million, which primarily consisted of $(512.7) million in revenue recognized from management fees and $(17.2) million in realized (gains) on sale of digital assets, net. This was partially offset by $300.1 million in proceeds from sale of digital assets and $12.7 million in stock-based compensation. In addition to these changes were changes in operating assets and liabilities of $42.8 million.

*Investing activities*

Net cash used in investing activities of $(1.2) million for the year ended December 31, 2024, which consisted of $(0.6) million and $(0.6) million in purchases of equipment and purchases of investments in digital asset trusts and funds, respectively.

Net cash used in investing activities of $(1.8) million for the year ended December 31, 2023 primarily related to $(1.5) million and $(0.3) million in purchases of equipment and purchases of investments, respectively.

*Financing activities*

Net cash used in financing activities of $(299.3) million for the year ended December 31, 2024, which consisted of $(299.3) million in distributions to DCG.

Net cash used in financing activities of $(44.8) million for the year ended December 31, 2023, which consisted of $(44.8) million in distributions to DCG.

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## **Off-Balance Sheet Arrangements** 
We do not have any off-balance sheet financing or other arrangements and have neither created nor are party to any special-purpose or off-balance sheet entities for the purpose of raising capital, incurring debt or operating our business.

## **Quantitative and Qualitative Disclosures about Market Risk** 
Market risk is the risk associated with changes in the market value of assets and liabilities resulting from broad market movements, such as changes in the general level of interest rates, equity prices, foreign exchange rates, and commodity prices. The Company's material market risks are outlined below.

***Digital Asset Price Risk***

A significant portion of our revenue is derived from fees based on a percentage of the value of the digital assets under management. Digital assets are accounted for using the fair value of the underlying digital assets and are sensitive to changes in market prices. Any reduction in the market prices would decrease our AUM and the fees we earn on such AUM. In addition, declines in digital asset prices may cause investors to withdraw funds from our investment products in favor of investments that they perceive as offering greater opportunity or lower risk, thereby compounding the impact on our revenues.

Our management fees from our investment products are accrued daily in U.S. dollar at fair value; however, we receive noncash consideration in the form of digital asset tokens. This form of consideration introduces digital asset price risk between the daily management fee accrual and the date of receipt of the digital asset tokens from our investment products. To minimize this risk, we may enter into forward contracts periodically throughout the month to deliver a fixed quantity of digital asset tokens at a fixed price to trading counterparties.

We held digital assets with fair value of $0.5 million and $0.3 million as of June 30, 2025 and December 31, 2024, respectively. In addition, we held investments in digital asset trusts and funds with fair value of $0.8 million and $1.3 million as of June 30, 2025 and December 31, 2024, respectively. A 10% decrease in the price of such digital assets and investments in digital asset trusts and funds would not have had a material impact on our results of operations.

***Counterparty Risk***

To source digital assets underlying our products and monetize our management fees received in digital asset tokens, we rely on a group of approved liquidity providers.

We seek to limit our counterparty risk across custodial services. In addition, we perform due diligence on our liquidity providers. Our due diligence procedures include, but are not limited to, internal control procedures around on-boarding new platforms, which includes review of their AML and KYC policies by our Chief Compliance Officer, periodic review of market information regarding security and solvency risk, setting balance limits for each platform account based on risk exposure thresholds and having a fail-over plan to move cash and digital assets held on a platform in instances where risk exposure significantly changes.

While we intend to only transact with counterparties that we believe to be creditworthy, there can be no assurance that a counterparty will not default and that we will not sustain a material loss on a transaction as a result.

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## **Critical Accounting Policies and Estimates** 
***Revenue Recognition***

We primarily generate revenue from management fees for acting as the sponsor for the trusts and funds. Revenue is recognized when services are delivered to a customer. The amount of revenue recognized reflects the consideration that we expect to receive in exchange for these goods or services. We recognize revenue in accordance with ASC 606, *Revenue from Contracts with Customers*. The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) the entity satisfies a performance obligation.

The performance obligation is the management of the trusts and funds. While the individual activities that comprise the performance obligation can vary day to day, the nature of the overall performance obligation to provide management service is the same and considered by the Company to be a series of services that have the same pattern of transfer to the customer and the same method to measure progress toward satisfaction of the performance obligation. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably as the trusts and funds receive and consume the benefits as they are provided by the Company. Consideration for the Company's services is generally in the form of variable consideration because fees are based on agreed-upon management service fee percentages ranging from 0.15% - 2.5% of the digital asset holdings fee basis amount or NAV of the trusts and funds (as defined in the respective trust agreements and LLC agreements). Such fees are affected by changes in the digital asset holdings fee basis amount or NAV of the trusts and funds, including market appreciation or depreciation and net inflows or outflows. The Company includes variable consideration in revenue when it is no longer probable of significant reversal, i.e., when the associated uncertainty is resolved. In exchange for management services, the Company receives noncash consideration in the form of units of the digital asset which are typically settled monthly in arrears. The Company measures the estimated fair value of the noncash consideration at contract inception. Changes in the fair value of the noncash consideration due to form of the consideration (changes in the market price of digital assets) are not included in the transaction price and therefore, are not included in revenue. In performing management services, the Company has discretion to involve third parties in providing services to the trusts and funds. The Company is deemed to be the principal in the arrangement because the Company controls the promised services before they are transferred to customers, and accordingly presents the revenue gross of related costs.

Digital assets received by the Company as non-cash consideration related to management fee income are converted nearly immediately into cash.

## **Recent Accounting Pronouncements** 
See Note 1 to the consolidated financial statements of Grayscale Operating, LLC included elsewhere in this prospectus for recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted as of the dates of the statements of financial condition included elsewhere in this prospectus.

## **Emerging Growth Company Status** 
Pursuant to the JOBS Act, an emerging growth company is provided the option to adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. We intend to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information you receive from other public companies.

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# **Busin ess** 
**Grayscale Overview**

In the span of less than 20 years, digital assets have transitioned from a pseudonymous whitepaper describing a theoretical "peer-to-peer version of electronic cash" into a multi trillion-dollar asset class representing a secular shift in how we think about the transfer of information and value. Digital assets and their underlying blockchain technology are both disrupting and democratizing financial markets and accelerating the pace of financial inclusion. In a world of greater regulatory clarity and institutional adoption, we believe digital assets have reached escape velocity and are now moving towards overtaking existing financial markets.

Grayscale is the largest digital asset-focused investment platform in the world by AUM and offers the broadest selection of digital asset investment products in the U.S. based on number of products. Our platform spans the full spectrum of institutional-grade solutions—from single-asset trusts to diversified and thematic strategies—with a goal of providing every investor with access to the hyper-expanding digital asset universe. Because we generate substantially all of our fee-earning revenue from the value of the digital assets in our investment products, we believe we are the ideal investment proxy for this asset class.

Founded in 2013, Grayscale was among the first to innovate on easy and trusted ways for individuals and institutions to participate in this secular shift. We began by creating regulated and secure investment vehicles to simplify the ownership of digital assets. Over time, our mission evolved: beyond access, we sought to connect capital with the most promising opportunities to help unlock the transformative potential of blockchain technology.

We have been at the forefront of this digital revolution ever since, pioneering the infrastructure that has enabled investors to participate in what is now the fastest-growing asset class in the past decade as compared to other major asset classes, including U.S. equities, gold and U.S. corporate bonds. From the beginning, we knew that in order for digital assets to achieve their potential, investors would need trusted, regulated and accessible pathways to invest in digital assets. Grayscale set out to bridge that gap. Our journey began with the launch of the world's first Bitcoin investment vehicle—then known as the "Bitcoin Investment Trust" —introduced when Bitcoin was still considered a "controversial virtual currency" and had a market capitalization of approximately $1.5 billion; as of June 30, 2025, its market capitalization is over 1,000 times that at approximately $2.2 trillion. This groundbreaking product offered U.S. accredited investors a familiar investment vehicle to gain exposure to the first and largest digital asset protocol in existence and would ultimately go on to be the first publicly traded Bitcoin vehicle under the ticker GBTC, the first SEC reporting digital asset investment vehicle and among the first spot Bitcoin exchange-traded products.

That same spirit of innovation and leadership has continued to drive us ever since. As the digital asset ecosystem evolved, developers began to unlock new dimensions of utility beyond Bitcoin's original design—paving the way for more advanced use cases. The next major breakthrough came with the creation of Ethereum, which introduced smart contracts and enabled programmable, decentralized applications across a wide range of sectors. Building on the tremendous success of the Bitcoin Investment Trust, we launched the first publicly traded Ethereum investment trust, once again setting a new industry standard. After Ethereum, innovative next generation digital asset protocols have continued to develop and optimize for different use cases. In 2024, Grayscale continued its leadership of firsts by filing for the first multi-digital asset exchange-traded product holding assets beyond Bitcoin and Ethereum.

What began with Bitcoin and Ethereum has spurred the development of an entire universe of digital assets and a global technological movement—extending far beyond financial services into industries as diverse as identity systems, digital artwork, file storage, web hosting, gaming and artificial intelligence. Blockchain technology is now transforming the traditional financial world with the tokenization of real-world assets, such as stocks, bonds, real estate and commodities, while stablecoins have become one of its most prominent use cases to date. Alongside this growth, we developed Grayscale Crypto Sectorsˢᵐ, a standardized framework for categorizing the asset class that enables investors to better understand the evolving landscape and allows us to analyze and systematically develop investment opportunities as the asset class evolves. We believe digital assets have the potential to reach nearly every facet of the economy and Grayscale is equipped to offer solutions for our stakeholders to capitalize on their growth at key steps along the way.

As a first-mover, we have become deeply embedded within the digital asset ecosystem and through our platform we work directly with protocol teams to source and structure investment products around what we believe are the most promising emerging protocols.

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As digital assets reshape the future of finance, Grayscale is not just participating in the evolution—we are helping invent it as we build the platform that we believe will continue to define the category in the years ahead. Just as Vanguard Group drove innovation in investment management with their first mutual fund in 1976, PIMCO drove innovation in investment management with their first bond fund in 1987, KKR transformed private equity with their leveraged buy-out vehicles in the 1980s and Blackrock dominated the most recent investment management innovation cycle with their ETFs in the 1990s to present day, Grayscale is pioneering this next-generation asset class.

For the year ended December 31, 2024, we generated $506 million in revenue and $365 million in operating income, representing an operating income margin of 72%. For the six months ended June 30, 2025, we generated $199 million in revenue and $122 million in operating income, representing an operating income margin of 61%. As of June 30, 2025, we manage $30.5 billion in AUM from which we earn management and advisory fees. We have a robust financial profile, and we expect to continue to grow our business over time by attracting more investors to our platform through our diversified portfolio of digital asset-focused investment solutions.

As we enter our next phase of growth, in 2025 we anticipate implementing a comprehensive digital asset treasury strategy to amplify and accelerate our positioning as the ideal investment proxy for the digital asset class. We expect to intentionally build a diversified pool of digital asset exposures on our balance sheet, beginning with Bitcoin, Ethereum, XRP and Solana, to establish a strategic treasury reserve that we believe would not only strengthen our financial position over the long term but also extend digital asset exposure to our investors in a more direct and aligned way. We believe this initiative is a natural extension of our core business and enhances our inherent leverage to the digital asset ecosystem.

## **Market Opportunity** 
***Massively Expanding Market***

Grayscale is capitalizing on a massively expanding market opportunity, addressing digital assets, the fastest-growing asset class in the past decade as compared to other major asset classes, including U.S. equities, gold and U.S. corporate bonds. Looking at Bitcoin as a proxy for digital assets, from June 30, 2015 to June 30, 2025, Bitcoin price increased 41,424% per CoinGecko. Comparatively over the same time period, the S&P 500 (per S&P Capital IQ), gold (per S&P Capital IQ), U.S. bonds (as measured by the Bloomberg U.S. Aggregate Total Return Value Unhedged USD Index) and U.S. treasuries (as measured by the BlackRock U.S. iShares Treasury Bond ETF) increased 201%, 186%, 19% and 12%, respectively.

As a result of this massive growth, we estimate our total addressable market capitalization is approximately $3.4 trillion as of June 30, 2025. We calculate this figure using the market capitalization of Bitcoin, Ethereum, and all other digital assets tracked by CoinGecko as of June 30, 2025, representing $2.2 trillion, $302 billion, and $973 billion, respectively.

Our serviceable addressable market reflects the total amount of capital invested in digital assets through investment vehicles of the same type we offer such as exchange-traded products, private funds or trusts, publicly-quoted private funds or trusts, and actively-managed strategies. We estimate this serviceable market opportunity is approximately $358.0 billion today. To calculate this figure, we consider the total assets under management of 241 digital asset exchange-traded products; 17 over-the-counter digital asset investment products; 29 digital asset futures-based funds; 53 digital asset-exposed thematic equity funds; 267 digital asset-exposed hedge funds; 922 digital asset-exposed private equity or venture capital funds; 68 digital asset-exposed private passive funds; and 20 tokenized digital asset funds. Our serviceable addressable market is based on a rigorous analysis of products offered by us and our competitors through both exchange-listed and non-exchange-listed products and funds, with data sourced from Bloomberg, Preqin and U.S. regulatory filings.

Looking forward, we believe there is potential for our addressable market opportunity to grow further. For example, prominent figures have implied that the digital asset market could grow to approximately $14 trillion, based on comments from Larry Fink indicating the potential for Bitcoin's price to reach $700,000, and up to approximately $441 trillion by 2046, based on comments from Michael Saylor.

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***Increasing Portfolio Allocations***

Investors are increasingly looking toward alternatives like digital assets for their investment exposure. While some financial advisors have recommended digital asset allocations ranging in the low single digits, other advisors are recommending larger portfolio allocations for certain investors.

In addition, we have seen multiple landmark developments in recent months in the U.S. regulatory and legislative policy environment which may pave the way for further investment in digital assets. We believe these constructive developments may in particular unlock the opportunity for digital assets to become a more meaningful allocation within U.S. retirement portfolios, which represents a market of approximately $43.4 trillion as of March 31, 2025 (per the Investment Company Institute).

Amid these developments, we continue to see investors indicate a growing interest in increasing their exposure to the digital asset ecosystem. In an independent survey conducted by EY, 83% of institutional investors expect to increase their digital asset allocations in 2025, with 59% expecting to allocate more than 5% of their portfolio to digital assets. We are also seeing this shift in investor preference towards digital assets across wealth management channels. According to a survey of financial advisors conducted by the Digital Assets Council of Financial Professionals between October and December 2024, the proportion of financial advisors recommending allocations toward digital assets for all clients has more than doubled relative to the start of the year, from 8% in the first quarter of 2024 to 20% in the fourth quarter of 2024. In addition, 65% of financial advisors have recommended digital asset allocations to at least 10% of their clients, and more than a third of financial advisors recommend digital asset allocations to at least half of their clients – indicating significant interest in the asset class and further opportunity for investor exposure to the asset class to increase over time.

***Continuing Adoption***

In addition to changing investor preferences, we also expect greater adoption of digital assets to materially contribute to the growth in our market. According to an analysis conducted by BlackRock in January 2025, the adoption of digital assets has outpaced the adoption of mobile phones and the internet historically, with digital assets reaching 300 million users in 12 years, while the internet and mobile phones reached 300 million users in 15 years and 21 years, respectively. Across digital assets, we see that adoption has been highly correlated with market size. Considering Bitcoin as a proxy for the broader asset class, we have observed that historically as Bitcoin adoption has increased, the price of Bitcoin has increased – demonstrating a significant opportunity ahead for this asset class as adoption continues to grow.

***Unlocking Digital Asset Features***

Digital assets have unique features. We believe one of the most prominent examples is staking, an activity with no direct parallel in traditional asset classes. By participating in staking, holders of certain digital assets help secure blockchain networks like Ethereum, and in return, earn protocol-level rewards for doing so. This mechanism not only enhances network integrity but also enables value creation directly from asset ownership. As of June 30, 2025, we manage one of the largest Ethereum ETP franchises globally, with approximately $4.2 billion in assets under management. While we currently cannot stake such assets, based on the average annualized staking reward rate of approximately 3% on the Ethereum protocol, we believe this position gives us the potential to generate tens of millions of dollars in additional value annually. We are advocating for regulatory approval to enable staking in our Ethereum, Solana and other stakeable investment vehicles to unlock this potentially significant value creation.

## **Industry Background** 
The digital asset industry has evolved significantly in recent years as the regulatory environment and market infrastructure underpinning the industry have continued to develop and improve, and digital asset adoption has soared. We expect capital inflows across digital asset investment products to accelerate, supported by constructive regulatory tailwinds and growing institutional demand for the asset class.

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***Grayscale's Landmark Victory – A Catalyst for Institutional Adoption***

One of the most significant catalysts to institutional adoption was the approval of Bitcoin and Ethereum-based ETPs in the United States, in which Grayscale played a critical role. In 2023, Grayscale secured a landmark victory in a U.S. Court of Appeals decision ruling in our favor as we sought to convert our Bitcoin trust into a spot Bitcoin ETP. This was a watershed moment in the industry and eventually led to the approval of the first spot Bitcoin ETPs.

The approval of spot Bitcoin ETPs opened avenues for institutional investors to gain exposure to digital assets through regulated, traditional investment vehicles, thereby reinforcing Grayscale's mission of bridging the gap between traditional finance and digital asset innovation.

Grayscale's landmark victory marked a pivotal milestone for the digital assets industry, coinciding with Bitcoin surpassing its then all-time high. Within several months, on the same basis of approving spot Bitcoin ETPs, spot Ethereum ETPs were approved, further unlocking secure and regulated access to digital assets through traditional investment vehicles, significantly expanding the pool of potential investors and reinforcing the viability of digital assets as an institutional asset.

***Pro-Digital Asset Regulatory Tailwinds*** 

Following the successful launches of Bitcoin and Ethereum ETPs, the U.S. now finds itself in the most pro-digital asset innovation administration to date. The current administration has demonstrated a proactive approach to integrating digital assets into the financial system, marking a departure from previous regulatory postures. Recent key developments in 2025 include:

*Executive*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Executive Order 14178, titled "Strengthening American Leadership in Digital Financial Technology," established the Presidential Working Group on Digital Asset Markets with a mandate to develop a federal regulatory framework for digital assets. The Working Group released a report in July 2025 outlining the administration's recommendations to Congress and various agencies reflecting the administration's "pro-innovation mindset toward digital assets and blockchain technologies." In particular, the report recommends that Congress enact legislation regarding self custody of digital assets, clarify the applicability of Bank Secrecy Act obligations with respect to digital asset service providers, grant the CFTC authority to regulate spot markets in non-security digital assets, prohibit the adoption of a CBDC, and clarify tax laws as relevant to digital assets. In addition, the report recommends that agencies reevaluate existing guidance on digital asset activities, use existing authorities to enable the trading of digital assets pursuant to laws and regulations at the federal level, embrace DeFi, launch or relaunch crypto innovation efforts, and promote U.S. private sector leadership in the responsible development of cross-border payments and financial markets technologies, among others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Executive Order 14233, titled "Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile," instructed the Secretary of the Treasury and Secretary of Commerce to develop strategies for maintaining Bitcoin and other digital assets, such as Ethereum, Solana, XRP and Cardano, that the U.S. Government already holds and develop strategies for acquiring more Bitcoin in a budget neutral manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•H.J.Res.25, a Congressional Review Act disapproval resolution, overturned the previous administration's rule that would have hampered the digital asset industry by creating unworkable tax reporting requirements for decentralized finance platforms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Executive Order 14178, titled "Democratizing Access to Alternative Assets for 401(K) Investors," aims to expand the range of investment options available to participants in 401(k) and other defined contribution plans to include alternative assets such as digital assets. It directs the Department of Labor ("DOL") to review its guidance under ERISA regarding alternative asset investments in 401(k) plans and clarify fiduciary duties related to asset allocation funds that include these investments. Additionally, the SEC is instructed to consider revising regulations related to "accredited investor" and "qualified purchaser"

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definitions to facilitate broader access to alternative assets such as digital assets, which would also expand access for our private placement offerings.

*Regulatory* 

The SEC, under new leadership, has taken steps to provide regulatory clarity, including the formation of a dedicated Crypto Task Force that aims to develop a comprehensive and clear regulatory framework for digital assets, focusing on fostering innovation while ensuring investor protection. Further signaling its shift away from regulation by enforcement and toward regulation by guidance and rulemaking, on February 20, 2025, the SEC replaced its previous enforcement unit, Crypto Assets and Cyber Unit, with the Cyber and Emerging Technologies Unit (CETU).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The SEC withdrew SAB 121, removing a significant barrier for public financial institutions to safeguard digital assets and opening up the market for regulated digital asset custodians.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The U.S. Department of Labor's Employee Benefits Security Administration rescinded its prior guidance, which discouraged fiduciaries from including digital assets in 401(k) retirement plans. The administration's prior guidance, released in 2022, directed plan fiduciaries to exercise "extreme care" before adding digital assets to investment menus. By rescinding this guidance, the administration unlocks significant opportunity for digital asset allocation from individuals and institutional wealth management platforms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The SEC withdrew several digital asset-focused proposed rulemakings, including SEC Rule 3b-16, which would have redefined certain terms used in the statutory definition of "exchange" in a manner that could sweep in various types of digital asset activity, including decentralized finance or DeFi, effectively shutting these activities down.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On July 31, 2025, Chairman Atkins announced "Project Crypto," a Commission-wide initiative to modernize securities rules for digital assets, reshore innovation in the United States, and implement the recommendations of the report by the interagency working group tasked with "proposing a Federal regulatory framework governing the issuance and operation of digital assets." Chairman Atkins had directed the SEC's policy divisions to work with the crypto task force to draft "clear and simple rules of the road for crypto asset distributions, custody, and trading," and also stated that the Commission and SEC staff will consider using interpretive, exemptive, and other authorities with respect to digital asset markets. Similar to SEC Chairman Atkins, CFTC Acting Chairman Pham announced on August 1, 2025 a "crypto sprint" to begin implementing the recommendations of the working group report.

*Judicial*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The SEC dropped or paused over a dozen of its high-profile lawsuits and/or investigations against digital asset market participants and protocol development teams including Binance, Coinbase, ConsenSys, Crypto.com, Cumberland, Gemini, Kraken, Robinhood, Ripple, DRW, Uniswap, and Tron Foundation. These actions eliminate regulatory overhang and allow the SEC Crypto Task Force to reassess how it applies securities laws to digital assets, while also looking to Congress to fill regulatory gaps.

*Legislative*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was signed into law in July 2025. This landmark legislation aims to establish a clear federal framework for regulating an important use-case of digital assets in the U.S., payment stablecoins. It focuses on protecting consumers, ensuring transparency, and promoting innovation in the stablecoin market by setting rules for issuers, reserve requirements, and marketing practices. The former Executive Director of the President's Council of Advisers on Digital Assets, Bo Hines, suggested this legislation may result in the digital asset industry increasing approximately four to six times in value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The U.S. House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act of 2025. This comprehensive landmark legislation aims to provide regulatory clarity for digital assets by delineating

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responsibilities between the CFTC and the SEC. Under the CLARITY Act, the CFTC would oversee digital assets classified as commodities, while the SEC would regulate digital assets classified as securities. The bill also imposes comprehensive customer disclosure, asset safeguarding, and operational requirements on digital asset market participants required to be registered with the CFTC and/or the SEC. The CLARITY Act represents a significant step towards establishing a regulatory framework for the digital asset market in the U.S.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The U.S. Senate Banking Committee released a discussion draft of the Responsible Financial Innovation Act of 2025 ("RFIA") in July 2025. The RFIA proposes a comprehensive regulatory framework for digital assets aimed at clarifying jurisdiction, enhancing consumer protections and fostering innovation. It seeks to resolve whether digital assets should be regulated as securities or commodities by introducing a classification system based on decentralization and functionality. Under this classification system, more decentralized digital assets would be regulated by the CTFC and more centralized digital assets would be regulated by the SEC. Digital assets' classification under the RFIA would be able to change over time under the classification system.

***Institutional Adoption and Asset Class Legitimization***

The confluence of executive action, judicial decisions and legislative reforms has dramatically reshaped the digital asset landscape, creating a clear regulatory roadmap and unlocking institutional interest. We have witnessed a dramatic shift in the perception and role of digital assets in global capital markets. Institutional investors—including asset managers, corporations, pensions, endowments and sovereign wealth funds—have moved beyond exploratory allocations and are now integrating digital assets into core investment strategies.

This transformation is particularly significant in light of the historic reluctance by legacy investment platforms to engage with digital assets. These platforms were not structurally or technologically equipped to navigate blockchain infrastructure, assess token-based investment vehicles, or provide compliant trading solutions tailored to digital assets. However today, continued institutional adoption, increasing regulatory clarity and advancements in the underlying technology have transformed digital assets into a core strategic allocation for a growing share of institutional portfolios.

We believe the growing demand for digital asset exposure—driven by macroeconomic diversification, generational wealth transition, and regulatory normalization—will continue to accelerate. Looking ahead, we believe platforms like Grayscale with the right combination of technical fluency, regulatory compliance, and fiduciary discipline are uniquely positioned to capitalize on the next wave of capital inflows.

## **What Sets Us Apart** 
We are a pioneer and believe that we are the ideal investment proxy for this asset class.

***Grayscale versus Digital Assets***

We believe $1 invested in Grayscale has the potential to outperform $1 invested in digital assets. We believe what drives this value proposition for investors is the inherent operating leverage underlying our platform, which has the potential to deliver superior returns relative to holding digital assets directly when digital asset prices appreciate, while maintaining a degree of cost control and downside protection should digital asset prices depreciate.

Additionally, compared to investing in digital assets directly, we believe Grayscale offers better accessibility and diversification due to the ability to gain exposure to the digital asset class through a single Grayscale ticker and a brokerage account.

***Grayscale versus Digital Asset Exposure via Public Markets***

Compared to the other options investors have for digital asset exposure via the public markets, including stablecoin issuers, miners, exchanges/brokerages and digital asset treasury companies, we believe Grayscale offers

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differentiated exposure given the diversification and capital efficiency to our business. Our platform delivers diversification across the full spectrum of the digital asset universe, including market-leading tokens such as Bitcoin and Ethereum, as well as next-generation tokens which have rapidly scaled with a diverse variety of use cases. We also operate a platform that is highly capital-efficient, driven by our fee-based revenue model on assets under management—which has not required outside capital to scale—and our historically best-in-class margins relative to legacy investment platforms, driven by our ability to control our expense base which is majority fixed in nature.

Compared to digital asset exposure via public market options, we believe Grayscale offers (1) better diversification than stablecoin issuers due to our comprehensive coverage of the digital asset universe rather than exposure to one sector, (2) better capital efficiency than miners due to their higher operating expenses, (3) better economics than digital exchanges and brokerages due to our revenues being derived from more stable management fees, and (4) better return on equity than treasury companies due to our profitable and capital-light operating business model that can, but does not need to, issue dilutive equity or debt.

As a business overall, we are differentiated by our digital asset investment platform, our trusted brand, our market-leading position, our proven management team, our institutional-grade infrastructure, our distribution platform and our regulatory leadership and industry advocacy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Digital Asset Investment Platform*: We have over a decade of experience building a platform curated specifically for the rapidly evolving digital asset class. As the largest digital asset-focused investment platforms in the world that is deeply embedded in the space, we have developed close relationships across the ecosystem, including with early-stage builders of protocols and tokens, enabling differentiated access to what we believe are the most promising digital asset investment opportunities. Following the selection of high-conviction assets, we explore strategic avenues to engage with projects to unlock access and create meaningful exposure for investors. We continue to invest in and expand this platform through to enhance our product offering and extend our market leadership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Trusted Brand*: We are the premier brand in the digital asset ecosystem, with leading mindshare versus other digital asset-focused investment platforms. According to market research consultancy Whitman Insight Strategies, Grayscale's brand awareness is approximately 2x greater than other digital asset-focused investment platforms 21Shares, Bitwise and CoinShares (based on a brand health survey commissioned by Grayscale, sampling 1,200 investors in the United States in December 2024). As the digital asset market has evolved, Grayscale has helped define it, becoming a trusted, educational thought leader and partner for financial professionals as they navigate and deploy capital into the asset class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Market-Leading Position*: The strength of our brand and our position as a trusted advisor to capital allocators has resulted in clear market leadership for Grayscale. Today, we have the #1 Bitcoin investment platform in the world by revenue as compared to other sponsors of spot Bitcoin ETPs; the #1 Ethereum investment platform in the world by revenue as compared to other sponsors of spot Ethereum ETPs; and the #1 Alternative Token investment platform in the world by revenue as compared to other sponsors of private funds investing in spot digital assets, where Alternative Tokens represents the over 38 other tokens our platform provides exposure to outside of Bitcoin and Ethereum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Proven Management Team*: Our team is a rare combination of decades of traditional finance work experience and digital asset leadership. Our team brings an institutional mindset to the evolving digital asset industry. In many cases, we have even helped define how digital asset products can operate within established regulatory frameworks, for instance, by bringing the first SEC reporting digital asset funds to market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Institutional-Grade Infrastructure*: We have invested heavily in developing a comprehensive compliance infrastructure purpose-built for digital assets. Our products are backed by institutional-grade partners, including custodians and auditors. Global investors, advisors and allocators look to Grayscale for secure and compliant exposure to the digital asset universe. Our internal controls, service provider ecosystem, and risk management protocols are designed to adhere to applicable federal securities laws, tax regulations, AML/KYC requirements and custodial standards. We believe our regulatory track record and reputation for responsible product design provide meaningful competitive differentiation, particularly as investors demand greater assurance, trust, and governance around digital asset exposure.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Client Engagement Platform*: With our team of digital asset experts, we are dedicated to deepening the world's understanding of the expanding digital asset landscape. We publish institutional-grade research on the digital asset landscape, combining deep fundamental diligence with real-time market intelligence to deliver insight that is trusted by a wide range of investors and capital allocators. Additionally, through our series of hosted *Crypto Connect* events in key wealth centers across the United States, we bring together our client engagement and research teams, as well as a network of industry leaders, regulatory experts and executives to educate hundreds of professional buyers, advisors, platforms and capital allocators representing trillions of dollars in wealth. In 2024, we published 37 research reports and hosted numerous events bringing together hundreds of finance professionals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Regulatory Leadership and Industry Advocacy*: We believe that strong regulatory engagement is essential to the long-term development and growth of digital assets. Grayscale maintains close and proactive relationships with U.S. regulators, and we have demonstrated a willingness to advocate for industry advancement within a compliant framework, most notably through our successful efforts to uplist Grayscale Bitcoin Trust as one of the first spot Bitcoin ETPs. This marked a critical milestone for industry legitimacy and investor access. More recently, we are advocating for regulatory approval to enable staking in certain of our investment vehicles, which would unlock significant amounts of value as one of the largest holders of stakeable assets through our Ethereum ETP franchise. Our reputation as a responsible, constructive industry participant is an increasingly important differentiator as regulators define the future of the digital asset market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Digital Asset Treasury Strategy*: Our treasury strategy draws on our deep domain expertise as the largest digital asset investment platform. We believe in the long term there will be three kinds of winning digital asset treasury strategies: those with scale, those with diversification or those with core business models that are inherently connected to digital assets. We believe Grayscale checks all three of these boxes, which solidifies our potential to be a winner in the digital asset treasury category. Additionally, given our highly profitable business and ability to organically grow our treasury strategy through management fees, we are positioned to further grow our strategy with a broad spectrum of equity and debt-like structured products as aggressively or conservatively as we desire.

## **Digital Asset Investment Platform** 
We are the largest digital asset-focused investment platform in the world as measured by AUM with approximately $30.5 billion under management. We offer the broadest selection of digital asset investment products in the U.S., based on number of products, with more than 30 products covering over 40 tokens as of June 30, 2025, whereas the closest competitor offers less than half the number of digital asset investment products compared to Grayscale as of June 30, 2025. We consider digital asset-focused investment platforms to be investment platforms that have provided services related to digital assets since their inception and currently primarily generate revenue from such digital asset-related services.

Our investment platform provides a robust and compelling suite of investment solutions across a range of liquidity profiles, designed to bridge investor access to digital assets through traditional investment vehicles, removing the storage, reporting and other logistical challenges associated with holding digital assets directly. In addition, our products enable investors to use tax-advantaged accounts such as individual retirement accounts and 401(k) retirement plans. We continue to invest in and expand this platform to further enhance our product offerings and extend our market leadership.

We are a trailblazer in developing innovative solutions that bridge our clients to digital asset innovation. Throughout our history, we have pioneered a comprehensive suite of investment solutions spanning single asset, diversified and thematic strategies across the complete liquidity spectrum. Our investment solutions platform consists of ETPs, ETFs and Private Funds across both active and passive strategies.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Solution** | &nbsp;&nbsp;**Overview** | &nbsp;&nbsp;**Product List (as of June 30, 2025)** |
| &nbsp;&nbsp;**ETPs and ETFs**<br>**$28.9Bn** | &nbsp;&nbsp;Efficient, liquid offerings providing investors with strategically designed thematic exposure to digital assets, digital asset ETPs and equities in a familiar vehicle | &nbsp;&nbsp;**<u>Passive:</u>**<br>***ETPs***<br>•Bitcoin Trust ETF (Ticker: GBTC)<br>•Bitcoin Mini Trust ETF (Ticker: BTC)<br>•Ethereum Trust ETF (Ticker: ETHE)<br>•Ethereum Mini Trust ETF (Ticker: ETH)<br>***ETFs***<br>•Bitcoin Miners ETF (Ticker: MNRS)<br>•Bitcoin Adopters ETF (Ticker: BCOR)<br>**<u>Active:</u>**<br>***ETFs***<br>•Bitcoin Covered Call ETF (Ticker: BTCC)<br>•Bitcoin Premium Income ETF (Ticker: BPI) |
| &nbsp;&nbsp;**Private Funds**<br> **$1.6Bn** | &nbsp;&nbsp;Private placement offerings to accredited investors. Private placement investors can gain liquidity by selling shares that have been approved for public trading on the OTC Markets Group | &nbsp;&nbsp;**<u>Passive:</u>**<br>***Private Placements***<br>•AAVE Trust<br>•Avalanche Trust<br>•Bittensor Trust<br>•Decentralized AI Fund<br>•DeepBook Trust<br>•Dogecoin Trust <br>•Lido DAO Trust<br>•MakerDAO Trust<br>•NEAR Trust<br>•Optimism Trust <br>•Pyth Trust<br>•Smart Contract Fund<br>•Space and Time Trust<br>•Stacks Trust <br>•Sui Trust<br>•Walrus Trust<br>•XRP Trust<br>***Publicly Traded on the OTC Markets Group*** <br>•Basic Attention Token Trust (Ticker: GBAT)<br>•Bitcoin Cash Trust (Ticker: BCHG)<br>•Chainlink Trust (Ticker: GLNK)<br>•Decentraland Trust (Ticker: MANA)<br>•Decentralized Finance (DeFi) Fund (Ticker: DEFG)<br>•Digital Large Cap Fund (Ticker: GDLC)<br>•Ethereum Classic Trust (Ticker: ETCG)<br>•Filecoin Trust (Ticker: FILG)<br>•Horizen Trust (Ticker: HZEN)<br>•Litecoin Trust (Ticker: LTCN)<br>•Livepeer Trust (Ticker: GLIV)<br>•Solana Trust (Ticker: GSOL)<br>•Stellar Lumens Trust (Ticker: GXLM)<br>•Zcash Trust (Ticker: ZCSH) |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Solution** | &nbsp;&nbsp;**Overview** | &nbsp;&nbsp;**Product List (as of June 30, 2025)** |
|  |  | &nbsp;&nbsp; <br>**<u>Active:</u>**<br>***Active Strategies***<br>•Dynamic Income Fund (GDIF) |

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***ETPs and ETFs***

Our ETPs and ETFs are efficient, liquid investment vehicles that provide retail and institutional investors with strategically designed thematic exposure to digital assets, digital asset ETPs and equities. We have laid the foundation for how trusted institutions engage with regulators to bring digital assets into the mainstream—building solutions that prioritize access, security and innovation. Following our landmark victory in a U.S. Court of Appeals ruling in our favor as we sought to convert our Bitcoin trust into a spot Bitcoin ETP, we paved the way for the digital asset ETP ecosystem in the U.S. In 2024, we were among the first to uplist our publicly traded Bitcoin investment fund, GBTC, and publicly traded Ethereum investment fund, ETHE, as ETPs.

As of June 30, 2025, we managed $28.9 billion in AUM in ETPs and ETFs across 6 passive products and 2 active products.

*ETPs*

Our ETP segment highlights our proven track record of innovation. In January 2024, GBTC was among the first spot Bitcoin ETPs to commence trading in the U.S., and, in July 2024, ETHE was among the first spot Ethereum ETPs to commence trading in the U.S. In addition, in July 2024, we launched the Mini Trusts to complement our existing product offerings; these Mini Trust products are the lowest fee ETPs for Bitcoin and Ethereum investors as of June 30, 2025.

We operate one of the largest Bitcoin ETP franchises and one of the largest Ethereum ETP franchises globally by AUM. Together, these digital assets and their associated investment vehicles comprise the largest segment of our AUM. We are in the process of filing to convert GDLC, Avalanche Trust, Dogecoin Trust, Solana Trust (Ticker: GSOL), XRP Trust and Litecoin Trust (Ticker: LTCN) to ETPs. We have also filed for new Cardano Trust, Polkadot Trust and Hedera Trust ETPs, as we continue to pioneer access to disruptive, next-generation digital protocols for retail and institutional investors.

*ETFs*

We are constantly iterating to develop new ways for investors to receive differentiated exposure to the digital asset industry. We have directly launched ETFs that provide curated exposure to the digital asset industry with varying strategies and risk, namely Grayscale Bitcoin Miners ETF (Ticker: MNRS) and Grayscale Bitcoin Adopters ETF (Ticker: BCOR).

*Active ETFs*

We were also one of the first firms approved for options-tiered products. In April 2025, we launched Grayscale Bitcoin Covered Call ETF (Ticker: BTCC) and Grayscale Bitcoin Premium Income ETF (Ticker: BPI), active ETFs offering investors the ability to access the volatility characteristics of Bitcoin as a differentiated source of income by virtue of our investments in derivatives on exchange-traded vehicles using our GBTC and BTC products. Additionally, we are in the process of filing for Grayscale Ethereum Covered Call ETF (Ticker: ETCC) and Grayscale Ethereum Premium Income ETF (Ticker: EPI), which would offer investors the ability to access the volatility characteristics of Ethereum as a differentiated source of income as well as using derivatives on our ETHE and ETH products. We are considering additional active ETFs utilizing this same model for other digital assets beyond Bitcoin and Ethereum.

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***Private Funds***

We are a pioneer in integrating digital assets into regulated investment frameworks and vehicles, enabling investor access to the fastest-growing asset class. Since launching our first private fund in September 2013—the Grayscale Bitcoin Trust—we have leveraged the private placement structure to deliver innovative, first-to-market investment offerings.

As of June 30, 2025, we managed $1.6 billion in AUM in Private Funds across 32 products spanning both passive and active strategies.

*Private Placements*

Building on the tremendous success of our first Bitcoin investment product in September 2013, we expanded our product suite by launching several other first of their kind products alongside digital asset innovation, including our first Ethereum investment product in December 2017. Since then, we have continued to expand and diversify our product suite to provide accredited investors the opportunity to meaningfully gain digital asset exposure in early-stage protocols through a private placement format.

Our private placement products are deliberately designed to provide exposure to a rapidly evolving asset class securely and conveniently. We rely on a research-driven, multi-faceted asset selection process to continue to deliver innovative private placement offerings.

*Publicly Traded*

We pioneered the process of obtaining public quotations for unrestricted shares of digital asset investment offerings. In May 2015, GBTC began publicly trading, making it the first publicly traded Bitcoin fund in the world. In 2019, ETHE began publicly trading, making it the first publicly traded Ethereum fund in the world. Public quotations provide liquidity to existing private placement investors by allowing them to continue to hold their shares in their brokerage account or sell them through their broker in a liquid public quotation market. This also expands access to retail investors, removing holding period restrictions and allowing broader participation beyond accredited investors—further diversifying the investor base for our products that are publicly traded.

In addition, we proactively registered certain of our products under the Exchange Act, establishing the first SEC reporting digital asset vehicles in the industry. In 2020, GBTC became the first SEC reporting digital asset investment vehicle in the world, and ETHE became the first SEC reporting Ethereum investment vehicle in the world, providing increased transparency and regulatory oversight for investors.

*Active Strategies*

Established in 2023, our Active Strategies offering further diversified and deepened our innovative suite of digital asset solutions. In 2023, we launched Grayscale Dynamic Income Fund (GDIF), our first actively managed fund offering, which provides investors exposure to a rewards-optimized portfolio of stakeable digital assets. GDIF optimizes staking rewards from its digital asset holdings, which include name brands such as Solana, Sui and Near, and distributes income on a quarterly basis.

We plan to build upon our existing actives strategy by providing investors additional solutions-oriented products tailored to meet their unique financial goals, risk tolerances and personal preferences. We believe that our Active Strategies offering represents a growth opportunity for our investment platform and will further complement our innovative, spot and passive digital asset offerings, while differentiating the business.

***Capital Solutions***

We marry capital with the most promising opportunities to help unlock the transformative potential of blockchain technology. We work directly with protocol teams to source and structure investment products around what we believe are the most promising emerging protocols.

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We are deeply embedded in the digital asset ecosystem, engaging directly with protocol teams and founders, digital asset foundations and developer communities. We provide differentiated early insights and access supported by institutional-grade research where we combine deep fundamental diligence with real-time market intelligence. We evaluate assets by identifying protocols aligned with key thematic tailwinds and by applying a disciplined, long-term investment lens.

Our systematic, dual-focused approach applies a digital asset-focused lens in conjunction with traditional investment analysis to evaluate projects and uncover what we believe are the highest value opportunities among over ten million tokens. From a traditional investment perspective, we analyze product-market fit, roadmap visibility, sector dominance, user behavior, technical architecture and team strength. Through our digital asset-focused lens, we analyze developer engagement, wallet activity, on-chain data, total value locked ("TVL"), token design, protocol revenue, governance and value ratios to determine intrinsic value relative to market capitalization.

Following the selection of high-conviction assets, we explore strategic avenues to engage with projects to unlock access and create meaningful exposure for investors. We evaluate investment vehicle suitability to launch the product in an optimal structure to satisfy investor demand. Our digital asset selection and expertise enable us to create and deliver innovative, forward-looking investment opportunities.

***Digital Asset Selection Process*** 

Our digital asset selection process is research-driven and multi-faceted, designed to identify digital assets and strategies that offer compelling investment potential. Led by our Product and Research teams, our systematic, dual-focused approach leverages an institutional framework that draws upon our digital asset expertise and traditional finance principles to identify what we believe are best-in-class protocols around which we build products. We consider a range of items, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Product-Market Fit, Roadmap Visibility and Sector Dominance*: In assessing assets, we evaluate product use cases and demand, protocol founders, project roadmaps, market share and more. We analyze roadmaps to ensure a current thesis remains viable in the future, informing us of any potential pivot in market fit. We target assets with a growing market share and/or continued dominance in their category. We use a similar framework to assess investment vehicles and strategies, evaluating market use cases and demand to determine market fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Blockchain Technology and Programming Languages*: Our asset selection evaluates use case applicability through the evaluation of blockchain technology, including direct testing of blockchains and applications. We also assess programming languages, targeting those with lower barriers of entry for developers and application development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*User Base and On-Chain Data Analysis*: Our evaluation of assets includes analysis of metrics such as TVL, daily active users and total number of wallets, developer activity and application usage. We evaluate asset prices relative to intrinsic value (like price-to-earnings multiples or enterprise value to EBITDA in traditional finance). These metrics can help indicate if projects are potentially overvalued or undervalued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Token Design*: We analyze token utility, supply dynamics, incentive structures and initial distribution to evaluate digital assets. We seek assets with value accrual mechanisms to tokenholders.

Our investment framework allows us to systematically evaluate a broad universe of digital asset protocols and to identify assets, strategies and vehicles that align with market demand and emerging structural trends. This approach emphasizes fundamental quality and positions us to maintain a leadership role in the digital asset industry.

As we identify digital assets for inclusion in our products, we consider where they fall within our Grayscale Crypto Sectorsˢᵐ, a standardized framework for categorizing digital assets that enables investors to better understand the evolving landscape and allows us to analyze and systematically develop investment opportunities as the asset class evolves. Crypto Sectors is a proprietary taxonomy of digital assets and a set of rigorous index tools developed in partnership with FTSE/Russell. In equity markets, investors typically organize listed assets according to the Global Industry Classification Standard ("GICS")—developed by MSCI and S&P Dow Jones Indices—and this taxonomy is the basis for many investible products. Like the GICS, Crypto Sectors provides a systematic and exhaustive classification system for investible assets. Crypto Sectors measures the universe of digital assets listed on centralized

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exchanges that meet minimum thresholds for market capitalization and liquidity. Each of these assets is then categorized into one of six distinct sectors and 24 subsectors. Grayscale applies this framework to evaluate each asset's performance and fundamentals against an appropriate peer group. By comparing blockchains and/or related applications to peers with similar business models, Grayscale can systematically identify potential investment opportunities.

For example, the Grayscale Product and Research team has used Crypto Sectors to create a valuation framework for smart contract platforms (as described in its piece *The Battle for Value in Smart Contract Platforms, June 2024*) and for investors, Grayscale offers a Grayscale Smart Contract Platform Fund and single asset trusts for the smart contract platforms Ethereum, Solana, Sui and Avalanche. Similarly, earlier this year Grayscale and FTSE/Russel created a new Decentralized Artificial Intelligence (AI) Crypto Sector. This new market segment can be used for peer group analysis for AI-related blockchain projects, as described in *Introducing the Artificial Intelligence Crypto Sector*, May 2025. For investors, Grayscale offers a Decentralized AI Fund and single asset trusts for the decentralized AI-focused digital assets, Bittensor, Near and Filecoin. Using Crypto Sectors as an organization framework, every quarter the Grayscale Product and Research team publishes a Top 20 list of high-potential crypto assets for prospective investors.

***Product Development*** 

Our product development process is designed to progress from asset and strategy identification to investment vehicle formation, providing investors with investment solutions in familiar investment product formats across a range of liquidity alternatives. We identify and evaluate digital assets and strategies that have a compelling use case and the potential for asymmetric upside across a rapidly evolving and complex digital asset landscape.

This process is underpinned by our regulatory commitment. Our legal, compliance and operational specialists collaborate with our product and research team from the outset of the process, focusing on adherence with securities regulation, filing requirements and other regulatory obligations. We proactively engage with regulators to support filing and approval processes and enable more efficient new product development amid evolving regulatory frameworks.

Our process can be summarized in five critical steps, with a legal and compliance assessment undertaken at each stage of development:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*Ideation and Selection Process*: We leverage a research-driven, multi-faceted process to identify assets, protocols and investment solutions following our digital asset selection process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.*Operational Considerations Assessment*: As a second step, our team of experts assess the operational feasibility and timeline for building a product around a given protocol or investment strategy. We analyze a range of factors, including the level of infrastructure and support required to build a successful product (e.g., token sourcing, blockchain analytics, custody, pricing and liquidity), often in collaboration with protocol teams to identify and resolve implementation gaps.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.*Internal Approval and Implementation*: In the final step of the pre-launch process, we obtain formal approval via an internal governance framework for each product launch.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.*Launch:* We deploy a differentiated go-to-market approach that enables us to quickly and efficiently launch and scale our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.*Ongoing Post-Launch Monitoring and Capital Markets Support*: After launching a new product, we monitor market trends, investor feedback and regulatory shifts to optimize our products and provide ongoing capital markets support to both advisors and investors.

We are a leader and innovator in originating and structuring institutional-grade digital asset products, working directly with protocol teams to design offerings that are scalable, aligned and bridge investors to digital asset innovation. We are committed to further expanding our product offerings in close collaboration with founders, protocol teams and core contributors—connecting these innovators to investors and enabling access to capital markets.

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***Our Client Engagement Platform***

We aim to be the platform of choice for investors to navigate the evolving digital asset ecosystem. We have one of the largest teams of digital asset-specialized client engagement professionals and portfolio consultants, with deep expertise and knowledge of the digital asset industry and traditional finance. Unlike other investment platforms, for whom digital assets may be one of many asset classes they focus on selling to their clients, digital assets are our only focus. Our prolific engagement platform provides coast-to-coast U.S. coverage in key wealth centers and is further enhanced by our full suite of sales infrastructure technology and exclusive client insights and events, including our series of hosted *Crypto Connect* events that bring together hundreds of advisors representing trillions of dollars in wealth. In 2024, we published 37 research reports and hosted numerous events bringing together hundreds of finance professionals.

Our client engagement platform is supported by three pillars of focus:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*Distribution*: Our digital asset-specialized client engagement team adopts a bespoke, consultative approach with clients to build brand loyalty and trust and to drive net new assets. Our specialized team includes experts that combine digital asset-specific knowledge, investment solutions expertise, portfolio construction and a personalized approach to educate and empower clients to build better portfolios. Our digital asset expertise is rooted in a comprehensive understanding of blockchain technology, the market for specific digital asset tokens and our related investment solutions. Our digital asset-specialized team is equipped with proprietary insights, tools, research, analytics, customized asset allocation services and strategic guidance to provide consultative and value-added solutions to clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.*Marketing*: Our distribution capabilities are supplemented by our marketing efforts, which seek to enhance our global brand awareness and position us as the platform of choice for current and prospective clients. We are purposefully investing in marketing at a pivotal time in the digital asset industry to drive client engagement, capture market share and continue building the most trusted brand in the industry.

Our marketing team utilizes targeted omni-channel campaigns, leveraging our proprietary client and prospect database and content to drive adoption of our solutions and awareness of our events. Our client engagement statistics reflect the considerable investment we have made in our platform. In 2024, we achieved massive reach across channels—delivering 5.2 billion advertising impressions. On social media, we drove 46 million organic and 206 million paid impressions, underscoring the strength and visibility of our brand across key digital touchpoints. We are the premier brand in the digital asset ecosystem: according to market research consultancy Whitman Insight Strategies, Grayscale's brand awareness is approximately 2x greater than other digital asset-focused investment platforms 21Shares, Bitwise and CoinShares (based on a brand health survey commissioned by Grayscale, sampling 1,200 investors in the United States in December 2024). By strategically aligning our distribution and marketing efforts with client relationships, we believe we are well-positioned to attract new clients and serve existing clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.*Public Relations, Communications and Events*: We provide digital asset education to clients at every stage of their investment journey. We host our Crypto Connect events, a series of exclusive events around the U.S. designed for financial professionals to receive relevant and up-to-date information on digital assets. We bring together our client engagement and research teams, as well as a network of industry leaders, regulatory experts and executives to educate hundreds of professional buyers, advisors, platforms and capital allocators in key wealth centers. Our appearances and events demonstrate our client engagement teams' ability to seamlessly bridge technical digital asset concepts with traditional finance, reinforcing our expertise and role as a thought leader in the sector.

Moreover, our senior leadership complements our client engagement efforts through public events, showcasing our digital asset expertise and thought leadership. Our leadership team participates in industry conferences, webinars, podcasts and media engagements to articulate the value of our sector and investment products, educating and empowering clients to build better portfolios.

We believe these three core pillars of client engagement are critical to us continuing to be an indispensable partner for investors at every stage of digital asset investing.

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## **Our Clients** 
We serve a diversified investor base seeking exposure to a rapidly evolving alternative asset class with a market-leading and trusted brand. Our clients include both individual and institutional investors, principally concentrated in the U.S. We categorize our client base across four distinct segments today:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*U.S. Self-Directed Retail*: U.S. self-directed online brokerage platforms, where efforts are largely focused on marketing, public relations and advertising with direct distribution to high-net-worth ("HNW") and ultra-high-net-worth ("UHNW") individuals. We are seeing rising demand among these sophisticated individuals who seek secure, trusted and tax-efficient access to digital assets. These investors often operate through personal entities, trust structures or multi-family offices and value direct ownership, liquidity and product optionality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.*U.S. Wealth Management Intermediary*: U.S. registered investment advisors ("RIA"), family offices, robo-advisors, broker-dealers, wealth management platforms and private banks. Our efforts are largely focused on traditional wholesaler distribution. We believe RIAs, broker-dealers, and wealth management platforms represent a significant growth opportunity, encompassing over $40 trillion of AUM. We are actively engaged with many of the top advisors and wealth platforms who have taken a strong interest in our innovative products and want to better understand how they should allocate investments in digital assets. According to a study by Harris Poll, 78% of high-net-worth investors under the age of 50 have expressed interest in digital assets as an investment option. Additionally, over 50% of high-net-worth Americans under the age of 50 believe their investment portfolio will include digital assets in the future. Grayscale is committed to meeting advisors and investors where they are in their digital asset journey, providing the tools, access and education they need to succeed in the next era of investing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.*U.S. Institutional*: U.S. hedge funds, pensions, endowments, sovereign wealth funds, insurance companies, foundations and asset managers. Our efforts are largely focused on traditional wholesaler distribution. Institutional adoption of digital assets is still in nascent stages with significant opportunity to become one of the largest long-term drivers for our business. We are focused on educating institutional investors that seek exposure to digital assets in a trusted, risk-managed, and compliant framework. We believe that as more institutions seek to diversify portfolios, enhance returns and hedge against macroeconomic risks, Grayscale's products and infrastructure offer a compelling solution that provides the bridge between traditional finance and the digital asset economy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.*Non-U.S.:* Primarily institutional clients, as well as UHNW individuals based outside of the U.S., who are often seeking liquidity and/or regulatory clarity in U.S. markets. Our efforts are largely focused on partnerships, targeted distribution and capital markets.

We undertake a personalized, data-driven approach to distribution and client engagement across our four client segments. We deliver innovative investment opportunities to clients regardless of their level of digital asset expertise or where they are in their digital asset investment journey. We provide clients with a differentiated experience through three core pillars of enablement, all of which are underpinned by our specialized digital asset expertise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*Client Insights and Analytics*: We aggregate and transform comprehensive transaction, interaction and client data into actionable intelligence, developing dynamic client profiles that enhance our opportunity segmentation and prioritization. This enables our specialized distribution team to allocate resources toward the highest value or most meaningful opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.*Product Strategy and Research*: We leverage insights uncovered through our deeply-embedded presence in the digital asset ecosystem. We engage with protocols and their developers throughout the protocol's lifecycle, providing differentiated insights into the sector. Our data-driven, analytical approach to asset selection and full suite of sales infrastructure and technology help clients make informed investment decisions. Our research team and capabilities are multi-faceted: we combine tenets of traditional investing and a deep understanding of the blockchain ecosystem, tokens and protocols. Our prolific investment research is highly trusted and commercially accessible, providing our digital asset-specialized client engagement professionals and portfolio consultants with a multitude of insights, analytics and expertise across market commentary, reports, videos, webinars and whitepapers. Our differentiated perspective around digital asset products, markets and ecosystem is a competitive advantage for us and supports our client engagement efforts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.*Capital Markets*: We continuously optimize the design and structure of our products based on market trends, investor feedback and regulatory shifts to meet capital market demand. In addition, we provide consultative execution support and liquidity services to assist clients with portfolio strategy and implementation. We deliver comprehensive capital markets support, ensuring accessibility at brokerage firms, and undertake strategic corporate actions (e.g., stock splits) to drive value for investors.

We believe we are uniquely positioned at the intersection of traditional and digital asset markets, enabling us to continue to deliver investment solutions across a range of current and future clients. We are digital asset specialists and seek to become the trusted partner for investors regardless of where they are in their investment journey.

## **Digital Asset Treasury Strategy** 
In connection with our anticipated digital asset treasury strategy, we expect to intentionally build a diversified pool of digital asset exposures on our balance sheet, beginning with Bitcoin, Ethereum, XRP and Solana, to establish a strategic treasury reserve that we believe would not only strengthen our financial position over the long term but also extend digital asset exposure to our investors in a more direct and aligned way.

We believe this initiative is a natural extension of our core business and enhances our inherent leverage to the digital asset ecosystem. Grayscale has always been intrinsically linked to the performance of the asset class through our fee-based revenue model denominated in digital assets. Historically, we monetized these fees for cash on a programmatic basis. By instead retaining all or a portion of this flow of tokens on our balance sheet and allocating additional capital to accumulate more, we would deepen that connection in a manner that is synergistic with our business as an asset manager. Additionally, we intend to hold some of our digital asset exposure directly through our investment products, further aligning our interests with those of our investors.

Our treasury strategy draws on our deep domain expertise as the largest digital asset investment platform and will be structured around a basket of large-cap token exposures that mirror those offered through our investment products. We anticipate funding our initial treasury via a private raise, providing meaningful foundational capital and scale from inception. This initial cohort of digital asset exposures may be periodically rebalanced using our institutional-grade asset selection and investment processes to optimize value appreciation. Through this approach, we believe our balance sheet has the potential to become not just a financial resource, but a strategic instrument that directly links Grayscale's operational and financial profile to the long-term performance of the digital asset ecosystem.

Going forward, we believe we have multiple levers to grow the amount of tokens in our treasury:

*Organic Growth*: Given we accrue our management fees in token across many of our investment products, we have a natural pool of digital assets that allows for capital-light accumulation of our treasury position over time. GBTC and ETHE, for instance, provide two of the largest pools of Bitcoin and Ethereum in the world through which we can accrue tokens. We may also leverage our significant free cash flow to conduct opportunistic token purchases directly.

*Staking to Earn Yield*: Proof-of-stake protocol assets held in the treasury will be delegated to institutional validators. The resulting staking yield will be reinvested into the treasury, compounding returns and enhancing alignment with long-term network participation.

*Financing*: Many digital asset treasuries are supported by businesses with limited or immaterial operating income and rely primarily on financing transactions for growth. In contrast, Grayscale operates a highly profitable business with no outstanding debt and a simple capital structure. We believe this financial strength provides us with strategic flexibility, enabling us to access a broad spectrum of equity and debt-like structured products as aggressively or conservatively as we desire and to deploy capital efficiently to scale our treasury holdings.

*M&A*: We believe there will only be a select number of digital asset treasuries in the long run, with winners among individual tokens and diversified baskets of tokens. Among these, certain firms will command multiples on NAV (mNAVs) greater than others. We believe our platform is well-positioned to be the consolidator of choice as the digital asset treasury landscape matures, benefiting from our scale, credibility, and specialized sector expertise. Through this positioning, we aim to deliver the leading digital asset treasury strategy for achieving diversified digital asset exposure.

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## **Growth Strategy** 
We believe we are still in the beginning of a multi-decade transformation in global finance driven by the adoption of digital assets. As the digital asset ecosystem continues to evolve and institutional adoption accelerates, we believe Grayscale is uniquely positioned to continue inventing the asset class in its next phase of growth. We are focused on delivering long-term growth through strategic expansion of our products, services, and distribution capabilities.

***Continue to Innovate and Broaden Solutions***

Our long-term strategy is centered on doubling-down on our private funds franchise; building on the success of our ETP product suite, and expanding our active business. Each of these is focused on expanding and diversifying our investment platform across both passive and active strategies, enabling us to meet investors where they are in their digital asset journey and unlock new opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Double-Down on our Private Funds Franchise*: We intend to grow our suite of 25+ single-asset and multi-asset private funds to capture demand for emerging digital assets with differentiated utility and investor interest. We will leverage our platform to pursue product expansion based on evolving market dynamics, investor demand, and regulatory developments—bringing new digital assets into institutional-grade structures as they mature. Historically, certain of our private funds have gone through a "lifecycle" starting as a private fund, becoming publicly traded on OTC Markets Group, registering as an SEC reporting company and uplisting as an ETP, with increased investor access and transparency at each step of the process. However, our current and future products may not follow this lifecycle as we adapt to the changing regulatory landscape and shifts in investor demand. For example, we may launch private funds that stay private, seek to uplist a private fund directly to an ETP or launch a new fund directly as an ETP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Build on Success of ETP and ETF Product Suite*: With the launch of spot Bitcoin and Ethereum ETPs unlocking secure and regulated access to digital assets through traditional investment vehicles, we believe growth will continue to come from delivering digital asset exposure through public markets. We plan to further grow our ETP and ETF product suite with additional single digital asset ETPs and multi-digital asset ETPs such as Grayscale Digital Large Cap Fund (Ticker: GDLC), enable staking to unlock additional value upon gaining regulatory approval to do so, and explore other products to meet increasing investor appetite, such as "crypto+" products that combine core digital asset exposure with other asset classes or strategies to create enhanced risk-adjusted return profiles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Expand our Active Business*: We plan to build upon our existing actives strategy by providing investors additional solutions-oriented products tailored to meet their unique financial goals, risk tolerances and personal preferences. We expect investor demand to continue to grow beyond simple spot products towards more complex investing strategies across a diverse range of investing themes and exposures. As the digital asset market evolves, we see significant opportunities to deliver alpha through actively managed investment solutions. We are investing in product innovation and portfolio management capabilities to further scale our expertise and differentiated offering in this emerging category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Grow our Treasury Position*: We intend to grow our treasury organically by retaining all or a portion of the digital assets we accrue through our management fees, by staking digital assets on proof-of-stake protocols, through opportunistic financing transactions and opportunistic M&A of other digital asset treasury companies.

***New Vectors for Growth***

We also see clear opportunity to expand our platform through several new vectors for growth, including continued monetization of our platform through our capital solutions engine - connecting promising digital asset tokens to investors who are seeking digital asset exposure across a range of tokens and products; expanding into wealth management; geographic expansion beyond the United States, where we currently operate today; and potentially expanding our digital asset treasury strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Monetize Our Platform*: At Grayscale, we've built a closed-loop engine that uniquely connects two sides of the digital asset economy: founders and protocol developers who are creating new, decentralized

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innovations, on the one hand, and investors who seek curated, structured and secure access to these opportunities, on the other hand. As described in more detail in "Investment Platform—Capital Solutions," our systematic approach to asset selection and product development connects both sides of the ecosystem. As the digital asset sector continues to rapidly expand, we believe our platform is the best-positioned to originate investment in new and innovative digital asset tokens and rapidly bring these products to market. As investors increasingly view digital assets as core components of their portfolios, we are focused on further developing our platform to provide offerings that support investor outcomes across a range of financial goals. Additionally, of June 30, 2025, we manage one of the largest Ethereum ETP franchises globally, with approximately $4.2 billion in assets under management. Based on the average annualized staking reward rate of approximately 3% on the Ethereum protocol, this position gives us the potential to generate tens of millions of dollars in additional value annually. We are advocating for regulatory approval to enable staking in our Ethereum, Solana and other stakeable investment vehicles to further monetize our platform through this significant value creation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Expand into Wealth Management*: We have cultivated an engaged and loyal investor base, many of whom have repeatedly invested in our products over time. These investors often rely on our expertise to identify and provide investment exposure to compelling digital asset opportunities. Building on this trust, we have the potential to become more deliberate in our approach to serving this investor base by expanding into wealth management offerings. This strategy reflects our view that our established relationships position us to deepen investor engagement and drive long-term growth through a broader suite of investment solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Geographic Expansion*: Global demand for digital investment solutions is expanding rapidly, particularly in regions with well-developed financial services ecosystems, conducive regulatory frameworks and rising institutional interest. We do not have immediate plans to expand internationally, as the United States remains our primary focus. Nonetheless, the framework that we are developing to grow digital asset investments positions us for breakout opportunities in international geographies in the future. <br>

## **Competition** 
The digital asset investment industry is highly competitive, with significant competition across product offerings, fees, brand recognition and service quality. We face competition from other digital asset and alternative investment platforms as well as from larger traditional investment firms with broader distribution channels, resources and diversified revenue streams that offer investments with exposure to digital assets. Many of our larger competitors have extensive sales organizations and can attract clients through retail bank networks, broker-dealer networks and other channels not available to us.

In addition, because we operate in the rapidly evolving digital asset industry we expect competition to further intensify in the future as existing competitors introduce new products or enhance existing products, and as new competitors emerge.

We compete against a number of companies operating both within the United States and abroad, both those that focus on traditional financial services and those that focus on digital asset-based services that provide both retail and institutional clients passive, active and venture exposure to digital assets and blockchain companies in the ecosystem.

Investment products such as ETPs, ETFs and private funds now span nearly every asset class, including digital assets. As the market matures, existing and new players are introducing investment products that often resemble our strategies. However, we believe that significant opportunities for innovation remain across both passive and active digital asset strategies. Our approach emphasizes being an early entrant into compelling digital asset protocols, which can provide a significant advantage. In particular, the first ETP in a category to attract scale in AUM and trading liquidity is generally viewed as the most attractive product.

Fee reductions by competitors have been a persistent trend, with some larger firms able to offer lower fees or even use products as loss leaders due to other revenue sources. New entrants also often seek to compete by offering lower-fee investment products, such as ETPs. We generally consider our product pricing to be well-positioned within the competitive landscape. For example, as of June 30, 2025, management fees for the largest eight spot Bitcoin ETPs

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(other than GBTC and BTC Mini) ranged from 0.19% to 0.30%, and management fees for the largest six spot Ethereum ETPs (other than ETHE and ETH Mini) ranged from 0.19% to 0.25%.

Our competitive success will largely depend on our ability to offer innovative products that are attractive to investors, maintain strong internal controls and risk management infrastructure to foster customer trust and build distribution relationships. Additionally, we focus on strengthening our brand and attracting and retaining talented sales professionals and employees.

## **Culture and Employees** 
Our employees are the foundation of our success and one of the most valuable assets of our organization. Our management team is a rare combination of decades of traditional finance work experience, with over 110 years of cumulative experience, and digital asset leadership, with over 30 years of cumulative experience. Our team brings an institutional mindset to the maturing digital asset industry. This convergence of capabilities positions us to deliver investment solutions and client experiences that are both institutionally robust and technologically advanced, which we believe offers a competitive edge that is difficult to replicate.

To support this strategy, we place a strong emphasis on hiring exceptionally driven individuals who are motivated to build at the frontier of innovation and who share our long-term vision for the future of digital assets. This combination of institutional discipline and entrepreneurial energy informs our product development, decision-making, and client engagement, positioning us to meet the evolving needs of investors in the rapidly evolving digital asset ecosystem.

Our corporate culture is anchored in fiduciary responsibility, regulatory compliance and operational excellence. We maintain a rigorous compliance framework supported by institutional-grade infrastructure and enterprise-level risk management protocols. Regulatory best practices and operational resilience are embedded into the foundation of our firm. This culture of compliance is an integral part of how we pursue innovation responsibly.

We take pride in the high-performing, inclusive culture we have built. Our employee retention rate of 97% from January 2023 through June 30, 2025, excluding involuntary separations and non-regrettable attrition, reflects the strength of our values, the clarity of our mission, and the opportunities we provide for career advancement.

As of June 30, 2025, we employed 124 professionals, approximately 55% of whom serve in product, research, technology engineering, marketing and legal roles—key functions that support innovation and drive strategic growth. None of our employees are represented by a labor union or are subject to collective bargaining agreements.

To attract and retain top-tier talent, we strive to offer a highly competitive total rewards program. This includes market-aligned base salaries, annual performance-based cash bonuses, and equity incentives that enable employees to share in the long-term success of our company. Our compensation philosophy is designed to reward both individual and company performance while aligning employee interests with shareholder value.

We also provide a comprehensive benefits package that supports the well-being, financial security, and work-life balance of our employees. Benefits include fully paid medical, dental, and vision insurance; a 401(k) plan with company matching contributions; and paid time off.

Our employees work in a state-of-the-art headquarters designed to foster collaboration, innovation, and well-being. The facility features a gourmet chef, an on-site fitness center, and a range of thoughtfully curated amenities that enhance the daily workplace experience. We believe that creating an exceptional working environment is fundamental to sustaining high levels of engagement, productivity, and long-term retention.

We are also committed to the continuous development of our talent. We have established Grayscale University, a proprietary in-house learning and development platform designed to support professional growth at every stage of an employee's career. This platform delivers programming focused on technical skills, industry knowledge, and leadership development. It is complemented by structured team-building initiatives that foster collaboration and

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organizational cohesion. In addition, all employees have access to LinkedIn Learning, a global repository of self-directed educational content that supports personalized development aligned with individual goals. We believe that investing in our people is critical to driving innovation and delivering sustainable long-term value.

As we continue to scale, we remain committed to fostering a culture anchored in excellence, accountability and continuous learning, while maintaining the highest standards of integrity and operational discipline.

## **Our Policies and Procedures** 
We have various policies and procedures designed to prevent self-dealing and to identify and address other potential conflicts of interest by employees of Grayscale.

We have implemented policies and procedures that are designed to prevent, detect and manage conflicts of interest and breaches of information barriers. We maintain a "restricted list" of companies or tokens for which we may be in possession of, or are likely to come into possession of, material non-public information through some form of engagement or involvement. When a company or token is placed on our restricted list, trading in the securities or other instruments of such company and tokens will be prohibited either on a principal or agency basis, absent special authorization, until that company or token is removed from the restricted list.

We devote significant resources to overseeing the effectiveness of the policies and procedures used to identify, monitor and manage our risks relating to conflicts of interest. However, it is possible that our policies and procedures may not always be effective and/or we may not always be successful in monitoring and evaluating the risks to which we are or may be exposed in all market environments or against all types of risks in these areas, including unidentified or unanticipated risks. For more information, see the section titled "Risk Factors—Risks Factors Related to Our Business—Operational risks may materially adversely affect our performance and results of operations, and our risk management strategies may not be effective in mitigating such risks."

## **Safekeeping of Digital Assets** 
Grayscale does not itself hold digital assets in custody or hold customer digital assets on digital asset trading platforms on behalf of our digital asset products. All of our digital asset products hold digital assets in their own names and are not commingled with our funds or the funds of our affiliates. In accordance with each digital asset product's governing documents, digital assets are held in omnibus and/or segregated accounts at digital asset custodians. Aggregate client omnibus account balances held with custodians can be viewed on the blockchain; however, specific client ownership of assets is not delineated or viewable on the blockchain. We maintain separate wallets for purposes of facilitating our non-client businesses. Similarly, separate bank accounts are maintained for our fiat currencies that are segregated from our clients, and our affiliates' bank accounts.

We rely on Coinbase Custody, Anchorage and BitGo, which are "qualified custodians" for purposes of Rule 206(4)-2(d)(6) under the Investment Advisers Act with respect to the digital assets underlying our investment products (each a "Custodian" and collectively, the "Custodians"), to custody digital assets on behalf of us and our investment products. See the sections titled "Risk Factors—Risks Factors Related to Our Business—We rely on Coinbase Custody, Anchorage and BitGo to provide us and our investment products with critical custody services for the digital assets for which we offer investment products. The failure of a Custodian to adequately safeguard these digital assets, or any disruptions to its services, could materially adversely affect our business and harm investors in our investment products" and "Risk Factors—Risk Factors Related to Digital Assets—Private keys are often required to access or transfer digital assets held in custody and the loss or destruction of such private keys may cause complete loss of the ability to retrieve or transfer such digital assets. If our Custodians are unable to access the private keys and any backups thereto, or it experiences a cybersecurity breach, hack or other data loss that would restrict its ability to access any digital asset held in custody, then we could become subject to reputational harm, legal claims, regulatory scrutiny and other losses" for a description of certain risks associated with safekeeping of digital assets.

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***Description of the Coinbase Prime Broker Agreements***

Coinbase and certain of our investment products, including, GBTC, ETHE and the Mini Trusts, have entered into certain Prime Broker Agreements (the "Prime Broker Agreements"), which establish the parties' rights and responsibilities with respect to the digital assets held in accounts on behalf of the investment products.

Under the Prime Broker Agreements, all such digital assets, other than those which are credited to a settlement balance maintained with Coinbase, are held in custody accounts maintained on the books of Coinbase Custody (together with Coinbase, the "Coinbase Entities"), as to which Coinbase Custody controls the private keys which allow for the transfer of ownership or control of the digital assets on the investment products' behalf (the "Vault Balance"). The Prime Broker Agreements provide that the investment products' Vault Balance will be held by the Coinbase Custody in segregated wallets or accounts. Coinbase Custody is required to keep all of the private keys associated with the investment product's digital assets held in the Vault Balances in an offline manner, in cold storage. The term "cold storage" refers to a safeguarding method where the storage of private keys may involve keeping such keys' materials on a non-networked computer or electronic device or storing the private keys on a storage device.

Coinbase Custody is required to use commercially reasonable efforts to keep in safe custody on our investment products' behalf all of the digital assets received by it. All of the digital assets credited to the Vault Balances will (i) be held in a Vault Balance at all times, and the Vault Balance will be controlled by the Coinbase Custody; (ii) be labeled or otherwise appropriately identified as being held for the respective investment product; (iii) be held on a non-fungible basis; (iv) not be commingled with other digital assets held by the Coinbase Custody, whether held for the Coinbase Custody's own account or the account of other clients other than our investment products; and (v) not without our prior written consent be deposited or held with any third-party depositary, custodian, clearance system or wallet.

Pursuant to the terms of the Prime Broker Agreements, Coinbase Custody is required to maintain insurance in such types and amounts as are commercially reasonable for the custodial services it provides. Coinbase Custody has advised us that it has insurance coverage pursuant to policies held by Coinbase Global, which procures fidelity (or crime) insurance coverage at commercially reasonable amounts for the custodial services provided. This insurance coverage is limited to losses of the digital assets that Coinbase Custody custodies on behalf of its clients, including our investment products' digital assets, resulting from theft, including internal theft by employees of Coinbase and its subsidiaries and theft or fraud by a director of Coinbase if the director is acting in the capacity of an employee of Coinbase or its subsidiaries. Although Coinbase is not required to maintain insurance under the terms of the Prime Broker Agreements, we have been advised that it maintains insurance coverage pursuant to such policies held by Coinbase Global.

The Coinbase Entities provide for: (i) holding of our investment products' digital assets in the Vault Balances and the settlement balances; (ii) transfer of our investment products' digital assets between the relevant Vault Balances and the settlement balances; (iii) the deposit of digital assets from a public blockchain address into the respective account or accounts in which the Vault Balances or the settlement balances are maintained; and (iv) the withdrawal of digital assets from the Vault Balances to public blockchain addresses that our investment products control (each such transaction is a "Custody Transaction"). Coinbase Custody reserves the right to refuse to process or to cancel any pending Custody Transaction as required by law or in response to a subpoena, court order, or other binding government order or to enforce transaction, threshold, and condition limits, in each case as communicated to us as soon as reasonably practicable where Coinbase Custody is permitted to do so, or if Coinbase Custody reasonably believes that the Custody Transaction may violate or facilitate the violation of an applicable law, regulation or applicable rule of a governmental authority or self-regulatory organization. The Coinbase Entities may suspend, restrict or terminate our access to the such services, and/or suspend, restrict or close the accounts associated with our Vault Balances and settlement balances (the "Accounts") if we or our investment products have taken certain actions, including any prohibited use or prohibited business as set forth in the Prime Broker Agreement, or if either or both of the Coinbase Entities are required to do so by a subpoena, court order, or other binding government order.

Coinbase Custody will keep timely and accurate records as to the deposit, disbursement, investment and reinvestment of the digital assets in the Vault Balances. The Prime Broker Agreements also provide that Coinbase Custody must permit, to the extent it may legally do so, our third-party representatives, upon thirty days' notice, to

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inspect, take extracts from and audit the records that it maintains, take such steps as necessary to verify that satisfactory internal control systems and procedures are in place, as we may reasonably request.

We and the Coinbase Entities have agreed to indemnify one another from and against certain claims or losses, subject to customary exceptions and limitations.

Each of the Prime Broker Agreements will remain in effect until either party terminates the agreement. We may terminate the agreement in whole or in part upon thirty days' prior written notice to the applicable Coinbase Entity; and (ii) for Custodian Cause (as defined in the Prime Broker Agreements) at any time by written notice to Coinbase, effective immediately, or on such later date as may be specified in such notice. We are also entitled to terminate the Prime Broker Agreements in the event that the Coinbase Entities do not deliver a SOC 1 Report or SOC 2 Report, as applicable. The Coinbase Entities may terminate the Prime Broker Agreements (i) upon one hundred eighty days' prior written notice to us; and (ii) for Cause at any time by written notice to us, effective immediately, or on such later date as may be specified in the notice.

## **Government Regulation** 
Below is a description of the regulations, requirements or regimes that are, or are expected to be, applicable to our businesses by jurisdiction.

The worldwide regulation of investing and financial businesses is extremely complex. In addition, regulation of digital assets is a relatively new and rapidly evolving space. We are expected to be guided in significant part by regulatory regimes that are not clear or are not yet developed. We intend to use our internal legal and compliance expertise, in consultation with our outside counsel, to determine how to engage in our business activities so as to obtain the appropriate licenses or to be able to rely on an exception or exemption from any relevant registration requirement. We will continue to monitor the laws and guidance issued in these jurisdictions that may be applicable to our business.

## **United States** 
Our business is subject to multiple complex regulatory regimes in the United States. For a discussion of certain U.S. regulatory risks, see relevant risk factors under "Risk Factors—Risk Factors Related to Regulation and Litigation."

***Securities Regulation Generally***

A key question that we face is whether the digital assets for which we offer investment products are "securities," or whether the offers and sales of such digital assets are securities transactions, under the federal securities laws. Whether a particular digital asset is a security under the federal securities laws depends on whether it is included in the lists of instruments making up the definition of "security" in the Securities Act, the Exchange Act, the Investment Advisers Act and the Investment Company Act. Digital assets as such do not appear in any of these lists, although each list includes the terms "investment contract" and "note," and the SEC has typically analyzed whether a particular digital asset is a security by reference to whether it meets the tests developed by the federal courts interpreting these terms, known as the *Howey* and *Reves* tests, respectively. For many digital assets, whether or not the *Howey* or *Reves* tests are met is difficult to resolve definitively, and substantial legal arguments can often be made both in favor of and against a particular digital asset qualifying as a security under one or both of the *Howey* and *Reves* tests. Adding to the complexity, the SEC staff has indicated that the security status of a particular digital asset can change over time as the relevant facts evolve. Public, though non-binding, statements by senior officials at the SEC have indicated that they or the SEC does not consider Bitcoin or Ether and, in certain circumstances, memecoins or some stablecoins, to be securities. For a further discussion on SEC's position on this topic, see "Risk Factors—Risk Factors Related to Regulation and Litigation—A determination that a digital asset is a "security" could adversely affect the value of that digital asset and potentially digital assets generally, and therefore adversely affect our business, financial condition and results of operations, as well as the market price of our Class A common stock."

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We believe that our process to determine whether a particular digital asset is a security reflects a thoughtful analysis that is reasonably designed to facilitate consistent application of available legal guidance to digital assets. As part of determining whether a particular digital asset is a security for purposes of the federal securities laws, we take into account a number of factors, including the various definitions of "security" under the federal securities laws and federal court decisions interpreting elements of these definitions, such as the U.S. Supreme Court's decisions in the *Howey* and *Reves* cases, as well as reports, orders, press releases, public statements and speeches by the SEC, its commissioners and its staff providing guidance on when a digital asset may be a security for purposes of the federal securities laws. Finally, we discuss the security status of the digital asset with external counsel and receive a memorandum regarding the status of such digital asset under the federal securities laws. Given the relative novelty of digital assets, the challenges inherent in fact-gathering for particular digital assets and the fact that federal courts have only recently been tasked with adjudicating the applicability of federal securities law to digital assets, at present, external counsel is generally not in a position to render a legal "opinion" on the securities law status of any digital asset. In light of these uncertainties and the fact-based nature of the analysis, we acknowledge that the SEC may take a contrary position and our conclusion, even if reasonable under the circumstances, would not preclude legal or regulatory action based on the presence of a security.

If we determine that a digital asset held by an investment product, or transactions in such digital asset, is a security, or are securities transactions, respectively, under the federal securities laws, whether that determination is initially made by us, or because a federal court upholds an allegation that such digital asset is a security, we do not intend to permit such investment product to continue holding such digital asset in a way that would violate the federal securities laws and therefore would either dissolve such investment product or potentially seek to operate such investment product in a manner that complies with the federal securities laws, including the Investment Company Act. Because the legal tests for determining whether a digital asset, or transactions in the digital asset, is a security or are securities transactions, respectively, often leave room for interpretation, for so long as we believe there to be good faith grounds to conclude that an underlying digital asset is not a security, we do not intend to dissolve or restructure such investment product on the basis that such digital asset could at some future point be determined to be a security.

If a digital asset underlying an investment product is a "security" under the federal securities laws, then the investment product holding such digital asset may be an unregistered "investment company" under the Investment Company Act. In such a scenario, there is no guarantee that we would be able to register such investment product as an "investment company," and we may be forced to liquidate the investment product. See "Risk Factors—Risk Factors Related to Regulation and Litigation—A determination that a digital asset is a "security" for purposes of the federal securities laws could have adverse regulatory consequences for us and our investment products with respect to the Investment Company Act and the Investment Advisers Act, and therefore adversely affect our business, financial condition and results of operations, as well as the market price of our Class A common stock."

Moreover, whether or not we or the investment product were subject to additional regulatory requirements as a result of any determination that the investment product's assets include securities or the investment product's transactions in digital assets constitute securities transactions, we may nevertheless decide to terminate the investment product, in order, if possible, to liquidate the investment product's assets while a liquid market still exists. For example, in response to the SEC's action against the issuer of the digital asset XRP, certain significant market participants announced they would no longer support XRP and announced measures, including the delisting of XRP from major digital asset trading platforms, resulting in our conclusion that it was likely to be increasingly difficult for U.S. investors, including Grayscale XRP Trust (XRP), to convert XRP into U.S. dollars. We subsequently dissolved Grayscale XRP Trust (XRP) and liquidated its assets. We have since established a new investment vehicle that holds XRP, Grayscale XRP Trust. If a federal court upholds an allegation that a digital asset an investment product holds is a security, or transactions in a digital asset an investment product holds are securities transactions, it is likely that the value of the shares of such investment product would decline significantly, which could adversely impact our reputation and the price of our Class A common stock.

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***Regulatory Framework of the ETP Industry and Digital Assets Business***

*ETPs*

Not all ETPs are ETFs. ETFs are a distinct type of security with features that are different than other ETPs. ETFs are open-end investment companies or unit investment trusts regulated by the Investment Company Act. This regulatory structure is designed to provide investor protection within a pooled investment product. For example, the Investment Company Act requires certain of the trustees for each ETF to be unaffiliated with the fund's investment manager. ETFs also operate under regulations that prohibit affiliated transactions, are subject to standard pricing and valuation rules and have mandated compliance programs. ETPs can take a number of forms in addition to ETFs, including exchange-traded notes, grantor trusts or limited partnerships. ETPs that are not ETFs, including GBTC, BTC Mini, ETHE and ETH Mini, which are structured as grantor trusts, are not regulated under the Investment Company Act. Instead, these ETPs are registered under the Exchange Act and file periodic reports with the SEC, and public offerings conducted by these ETPs are required to be registered with the SEC in accordance with the Securities Act.

*Digital Assets*

As digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including FinCEN, OFAC, SEC, CFTC, IRS, FDIC, FINRA, CFPB, DOJ, DHS, FBI, OCC and state financial institution and securities regulators) have been examining the operations of digital asset networks, users and markets, with particular focus on the extent to which digital assets can be used to launder the proceeds of illegal activities, evade sanctions, or fund criminal or terrorist enterprises and the safety and soundness of trading platforms and other service providers that hold or custody digital assets. Many of these state and federal agencies have issued consumer advisories regarding the risks posed by digital assets to investors. In addition, federal and state agencies, and other countries and international bodies have issued rules or guidance about the treatment of digital asset transactions or requirements for businesses engaged in digital asset activity. Moreover, the failure of FTX in November 2022 and the resulting market turmoil substantially increased regulatory scrutiny in the United States and globally and led to criminal investigations, SEC enforcement actions and other regulatory activity across the digital asset ecosystem.

There have been several bills introduced in, and in the case of the GENIUS Act passed by, Congress that propose to establish additional regulation and oversight of the digital asset markets. It is difficult to predict whether, or when, any of these developments will lead to Congress granting additional authorities to the SEC or other regulators, what the nature of such additional authorities might be, how additional legislation and/or regulatory oversight might impact the ability of digital asset markets to function or how any new regulations or changes to existing regulations might impact the value of digital assets generally and those held by us specifically. In addition, on January 23, 2025, President Trump issued an executive order titled "Strengthening American Leadership in Digital Financial Technology," aimed at supporting "the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy." The executive order established an interagency working group tasked with "proposing a Federal regulatory framework governing the issuance and operation of digital assets" in the United States. Pursuant to this executive order, the working group released a report in July 2025 outlining the administration's recommendations to Congress and various agencies reflecting the administration's "pro-innovation mindset toward digital assets and blockchain technologies." The consequences of increased federal regulation of digital assets and digital asset activities could have a material adverse effect on our business and the market price of our Class A common stock.

***Broker-Dealer Regulation***

The Exchange Act requires that any person who is acting as a broker or dealer effecting or inducing securities transactions must register with the SEC. A broker is defined as "any person engaged in the business of effecting transactions in securities for the account of others," while a dealer is defined as "any person engaged in the business of buying and selling securities for such person's own account," in each case, subject to regulatory exceptions. In order to sell and market investment products, we formed GSS, a registered broker-dealer. Broker-dealers are subject to regulation, examination, investigation, and disciplinary action by the SEC, FINRA, state securities regulators, and

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other relevant governmental authorities and self-regulatory organizations with which they are registered or licensed or of which they are a member. In addition to being a member of FINRA, GSS is registered as a broker-dealer in 53 U.S. states and territories and with the SEC. The regulation of broker-dealers encompasses all aspects of their business and operations, including sales and trading practices, client onboarding, advertising and marketing, research publication and distribution, best execution of customer orders, public offerings, order handling, suitability, fee arrangements, conflicts of interest, disclosures to clients, registration and supervision of personnel, capital adequacy, financial reporting, business continuity planning and information security, including data protection and cybersecurity. Broker-dealers must also comply with AML rules and requirements issued by FinCEN under the BSA (collectively, the "Anti-Money Laundering Rules"). See "—Anti-Money Laundering Rules" below for a description of the specific requirements.

***Investment Adviser Regulation***

The Investment Advisers Act defines an investment adviser as "any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities." GSA, one of our subsidiaries, is an SEC-RIA. To the extent that GSA has discussions with potential investors, it intends to follow the applicable selling restrictions for each such jurisdiction. In addition, GSA will be subject to the Anti-Money Laundering Rules. See "—Anti-Money Laundering Rules" below for a description of the specific requirements.

Our investment adviser is subject to, among other things, the anti-fraud provisions of the Investment Advisers Act and fiduciary duties derived from these provisions, which apply to our relationships with our advisory clients. These provisions and duties impose restrictions and obligations on us with respect to our dealings with our clients and the investments we manage, including for example disclosure of conflicts of interest. Our investment adviser has in the past been, and will in the future be, subject to periodic SEC examinations. A regular or routine SEC examination will typically involve, at a minimum, a careful review of the adviser's books and records and may include interviewing employees. The SEC examination staff may also conduct more frequent examinations focusing on a limited number of specific issues or conduct an examination "for cause." Our investment adviser is also subject to other requirements under the Investment Advisers Act and related regulations primarily intended to protect advisory clients. These additional requirements include maintaining effective and comprehensive compliance programs and written policies and procedures, record-keeping, reporting and disclosure, advertising and solicitation rules, safeguards for protecting client funds and securities, limitations on agency cross and principal transactions between an adviser and its advisory clients, restrictions on advisory contract assignments, privacy protection regulations, and anticorruption rules relating to investors associated with U.S. state or local governments. The Investment Advisers Act generally grants the SEC broad administrative powers, including the power to limit or restrict an investment adviser from conducting advisory activities in the event it fails to comply with federal securities laws. Additional sanctions that may be imposed for failure to comply with applicable requirements include the prohibition of individuals from associating with an investment adviser, the revocation of registrations, significant monetary penalties, disgorgement of gains, cease-and-desist orders and other censures. The SEC may bring civil actions against investment advisers, and seek damages or other relief, in a U.S. district court or before an administrative law judge. Even if an investigation or proceeding did not result in a sanction or the sanction imposed against us or our personnel by the SEC were small in monetary amount, the adverse publicity relating to the investigation, proceeding or imposition of these sanctions could harm our reputation and cause us to lose existing clients or fail to gain new clients.

***CFTC Regulation***

The CFTC regulates markets in listed futures and various types of over-the-counter derivatives on commodities, when traded in, into or from the United States. The CFTC has taken the position that certain digital assets are commodities for purposes of the regulatory scheme of the CEA. Generally speaking, trading in a principal capacity in commodities in the "spot" or "cash" markets would not subject a person to a licensing or regulation requirement under the CEA. The CFTC has jurisdiction over these spot commodity trading activities with respect to its anti-fraud and anti-manipulation authority under the CEA. The CEA imposes registration and regulatory requirements, including disclosure, reporting, and other requirements, on market participants engaged in commodity derivatives dealing activities. Under the CEA, commodity derivatives may include swaps, futures, and leveraged retail commodity transactions. GSA, which is a member of the National Futures Association, is subject to its rules, including, but not

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limited to, anti-fraud and anti-manipulation rules, diligent supervision requirements and disclosure requirements related to certain digital assets activities.

***Anti-Money Laundering Rules***

We are subject to various AML and counter-terrorist financing laws. As a broker-dealer we are subject to, and on January 1, 2026 as an investment adviser we will be subject to, the Anti-Money Laundering Rules and are generally required to, among other things, implement and maintain a risk-based AML program, provide an AML-related training program, report certain suspicious activities and transactions to FinCEN, comply with certain other reporting and recordkeeping requirements, and collect and maintain information about our customers, in each case subject to applicable exemptions. In addition, the BSA requires us to comply with certain customer due diligence requirements as part of our AML obligations, including developing risk-based policies, procedures, and internal controls reasonably designed to verify a customer's identity. Many states and other countries impose similar, and, in some cases, more stringent requirements related to AML and counter-terrorist financing. We have implemented a compliance program to reduce the risk that our platform is used to facilitate money laundering, terrorist financing, and other illicit activity in countries, or with persons or entities, included on designated lists promulgated by OFAC and equivalent foreign authorities. Our compliance program includes policies, procedures, reporting protocols, and internal controls, and is designed to address legal and regulatory requirements as well as to assist us in managing risks associated with money laundering and terrorist financing. AML regulations are constantly evolving and vary from jurisdiction to jurisdiction. We continuously monitor our compliance with AML and counter-terrorist financing regulations and industry standards and implement policies, procedures, and controls in light of the most current legal requirements.

***Consumer Protection***

A number of U.S. federal, state and local regulatory agencies, the FTC and the CFPB chief among them, regulate financial products and have broad consumer protection mandates and discretion in enforcing consumer protection laws, including matters related to unfair, deceptive or abusive acts and practices. They also promulgate, interpret and enforce rules and regulations that could affect our business.

***Economic Sanctions***

We must comply with economic and trade sanctions administered by the United States and other foreign governments in jurisdictions in which we operate. These sanctions can prohibit or restrict transactions involving certain countries, regions, governments, individuals, and entities or other property. For instance, OFAC includes certain cryptocurrency addresses on the list of Specially Designated Nationals and Blocked Persons, which are blocked and with which U.S. persons are generally prohibited from dealing. Changes to sanctions could affect our business.

***Privacy and User Data***

There are a number of laws, rules, directives and regulations relating to the collection, use, retention, security, processing and transfer of personally identifiable information about customers and employees. Because of that, much of the data we process, including certain financial information associated with individuals, is regulated by various privacy and data protection laws. These laws can apply, not only to third-party transactions, but also to information transferred between us, our subsidiaries and other commercial parties.

## **Foreign Jurisdictions** 
Various foreign jurisdictions have adopted, and may continue to adopt, laws, regulations or directives that affect a digital asset network, the digital asset markets and their users, particularly digital asset trading platforms and service providers that fall within such jurisdictions' regulatory scope. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•China has made transacting in cryptocurrencies illegal for Chinese citizens in mainland China, and additional restrictions may follow. China has banned initial coin offerings and there have been reports that Chinese regulators have taken action to shut down a number of China-based digital asset trading platforms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•South Korea determined to amend its Financial Information Act in March 2020 to require virtual asset service providers to register and comply with its AML and counter-terrorism funding framework. These measures also provide the government with the authority to close digital asset trading platforms that do not comply with specified processes. South Korea has also banned initial coin offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Reserve Bank of India in April 2018 banned the entities it regulates from providing services to any individuals or business entities dealing with or settling digital assets. In March 2020, this ban was overturned in the Indian Supreme Court, although the Reserve Bank of India is currently challenging this ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The United Kingdom's Financial Conduct Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded notes that reference certain types of digital assets, contending that they are "ill-suited" to retail investors citing extreme volatility, valuation challenges and association with financial crime. A new law, the FSMA, received royal assent in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions, markets and assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Parliament of the European Union approved the text of MiCA in April 2023, establishing a regulatory framework for digital asset services across the European Union. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes various obligations on digital asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection, prevention of market abuse and upholding the integrity of digital asset markets. MiCA was formally approved by the European Union's member states in 2023 and came into effect in 2024.

There remains significant uncertainty regarding foreign governments' future actions with respect to the regulation of digital assets and digital asset trading platforms. Such laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance of digital assets by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the digital asset ecosystem in the United States and globally, or otherwise negatively affect the value of digital assets held by investment products. The effect of any future regulatory change on an investment product or the digital assets held by such investment product is impossible to predict, but such change could be substantial and adverse to such investment product and therefore our AUM.

## **Legal Proceedings** 
In the ordinary course of business, we and our subsidiaries may be threatened with, named as defendants in, or made parties to pending and potential legal actions. We are also subject to regulatory oversight by numerous state, federal and foreign regulators.

We are not presently a party to any legal proceedings that in the opinion of our management, if determined adversely to us, would be expected, either individually or in the aggregate, to have a material adverse effect on our business, financial condition or results of operations. However, it often is not possible to predict the ultimate outcome of a legal proceeding and our assessment of the materiality of a legal proceeding, including any accruals taken in connection therewith, may not be consistent with the ultimate outcome of the legal proceeding. In addition, our current estimates of the potential impact of legal proceedings on our business, results of operations or financial condition could change from time to time in the future.

## **Intellectual Property** 
Our success depends in part upon our ability to obtain and maintain intellectual property protection for our brand, technology and inventions, to preserve the confidentiality of our trade secrets, to defend and enforce our intellectual property and proprietary rights and to operate without infringing, misappropriating or otherwise violating the valid and enforceable patent and other intellectual property rights of third parties.

We rely on a combination of trademarks, service marks, trade secrets, confidential know-how, proprietary research, tools and analytics, domain names and other proprietary technology and intellectual property in our business. Additionally, we rely in part upon employee confidentiality, non-disclosure and intellectual property assignment

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agreements (along with efforts to continue technological innovation and growth), to develop and maintain our competitive position. However, our proprietary technology and other intellectual property assets are difficult to protect. We seek to control access to and distribution of our confidential and proprietary information, including designs, and business processes, through physical, technical, and administrative security measures and contractual restrictions. For example, we seek to limit access to our confidential and proprietary information on a "need to know" basis and enter into confidentiality and nondisclosure agreements with our employees, consultants, customers and vendors that may receive or otherwise have access to any confidential or proprietary information or intellectual property. We also obtain written assignment agreements from our employees, consultants, and vendors that assign to us all right, interest and title to work products developed during their employment or service engagement with us. However, these agreements and controls may not provide meaningful protection. Further, these agreements may be breached or insufficient, or our controls circumvented, and we may not have an adequate remedy for any such breach, insufficiency or circumvention.

Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy aspects of our technology or obtain and use information that we regard as proprietary, or our technology and proprietary information could be unintentionally or intentionally misused by our employees. In such cases, third parties may independently develop the same or similar proprietary information or technology or may otherwise gain access to our proprietary information or technology. As a result, we may be unable to meaningfully protect our trade secrets and proprietary information. Our intellectual property rights, and the strategies we use to protect and maintain them, may not address all potential threats to our competitive advantage. See "Risk Factors—Risk Factors Related to Regulation and Litigation" for a description of risks related to our intellectual property and information technology systems.

## **Properties** 
Our principal office is located in a leased office at 290 Harbor Drive, 4th Floor, Stamford, Connecticut 06902 and consists of approximately 42,254 square feet.

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# **Manag ement** 

## **Executive Officers and Directors** 
Set forth below are the names, ages and positions of our directors, director nominees and executive officers as of the date of this prospectus. We intend to appoint additional directors prior to the consummation of this offering. References below to tenure on our board for each of our directors include their service on the board of GSOIH prior to the IPO Reorganization and the board of Grayscale Investments, LLC prior to the Pre-IPO Reorganization.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Name** | &nbsp;&nbsp;**Age** | &nbsp;&nbsp;**Position** |
| &nbsp;&nbsp;&nbsp;&nbsp;Peter Mintzberg | &nbsp;&nbsp;57 | &nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer and Director |
| &nbsp;&nbsp;&nbsp;&nbsp;Edward McGee | &nbsp;&nbsp;41 | &nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer and Director |
| &nbsp;&nbsp;&nbsp;&nbsp;Diana Zhang | &nbsp;&nbsp;41 | &nbsp;&nbsp;&nbsp;&nbsp;Chief Operating Officer  |
| &nbsp;&nbsp;&nbsp;&nbsp;Craig Salm | &nbsp;&nbsp;37 | &nbsp;&nbsp;&nbsp;&nbsp;Chief Legal Officer |
| &nbsp;&nbsp;&nbsp;&nbsp;Barry Silbert | &nbsp;&nbsp;49 | &nbsp;&nbsp;&nbsp;&nbsp;Chairman |
| &nbsp;&nbsp;&nbsp;&nbsp;Mark Shifke | &nbsp;&nbsp;66 | &nbsp;&nbsp;&nbsp;&nbsp;Director |
| &nbsp;&nbsp;&nbsp;&nbsp;Matthew Kummell | &nbsp;&nbsp;49 | &nbsp;&nbsp;&nbsp;&nbsp;Director |

---

## **Executive officers** 
***Peter Mintzberg*** has been the Chief Executive Officer and served as a director of Grayscale since August 2024. Prior to joining Grayscale, Mr. Mintzberg served as the Global Head of Strategy for Goldman Sachs Asset & Wealth Management Division since 2023 and as the Global Head of Strategy for Goldman Sachs Asset Management Division from 2021 to 2023. Previously, he was Global Head of Investor Relations at Apollo from 2020 to 2021. Prior to Apollo, he held global leadership roles in Strategy, M&A, and Investor Relations at OppenheimerFunds and BlackRock. With deep knowledge across a broad base of client types and asset classes, Mr. Mintzberg has over two decades of experience developing and executing strategy and innovating to drive growth. Mr. Mintzberg was recognized as a Latino leader in Finance by The Alumni Society in 2018 and was selected as a David Rockefeller Fellow in the 2016-2017 Class by The Partnership for New York City. He earned a Bachelor's degree in Engineering from Universidade Federal Rio de Janeiro and an MBA from Harvard University.

***Edward McGee*** has been the Chief Financial Officer of Grayscale since January 2022 and has served as a director of Grayscale since January 2024. Before serving as CFO, Mr. McGee was Vice President, Finance and Controller of Grayscale from June 2019 to January 2022. Prior to taking on his role at Grayscale, Mr. McGee served as a Vice President, Accounting Policy at Goldman, Sachs & Co. providing coverage to their SEC Financial Reporting team facilitating the preparation and review of their financial statements and provided U.S. GAAP interpretation, application and policy development while servicing their Special Situations Group, Merchant Banking Division and Urban Investments Group from 2014 to 2019. From 2011 to 2014, Mr. McGee was an auditor at Ernst & Young providing assurance services to publicly listed companies. Mr. McGee earned his Bachelor of Science degree in accounting from the John H. Sykes College of Business at the University of Tampa and graduated with honors while earning his Master of Accountancy in Financial Accounting from the Rutgers Business School at the State University of New Jersey. Mr. McGee is a Certified Public Accountant licensed in the state of New York.

***Diana Zhang*** has been the Chief Operating Officer of Grayscale since May 2025. Before joining Grayscale, she served as the COO of BlockTower Capital from 2023 to 2024. Previously, she spent more than 15 years at Bridgewater Associates, where she held several senior leadership positions, including Deputy to the co-CEO from 2015 to 2020. She also co-founded NeighborShare, a technology-driven nonprofit that helps families through pivotal moments of need that would otherwise go unmet. She currently sits on the board of directors of the nonprofits Connecticut Foodshare and NeighborShare. Ms. Zhang earned her BA in Economics and Government from Dartmouth College, where she graduated Summa Cum Laude.

***Craig Salm*** has been the Chief Legal Officer of Grayscale since January 2018. Prior to joining Grayscale, Mr. Salm was a corporate associate at Paul Weiss and a member of its Capital Markets & Securities Group—primarily focused on representing issuers, private equity sponsors, investment banks, hedge funds and other stakeholders in corporate finance transactions, as well as advising on securities law and corporate governance matters. Mr. Salm earned his Bachelor of Science from the University of Michigan and his Juris Doctor from the Benjamin N. Cardozo

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School of Law. Mr. Salm serves as a member of the Blockchain Association and a member of the Crypto Ratings Council (CRC).

## **Directors (who are not executive officers)** 
***Barry Silbert*** is the founder and CEO of DCG and has served as chairman of the board of directors of Grayscale since August 2025. Mr. Silbert has served as CEO and on the board of directors of DCG since 2015, and has served as CEO and on the board of directors of Yuma, a decentralized Al-focused DCG subsidiary, since November 2024. Mr. Silbert was an advisor to the board of directors of Grayscale from May 2024 to May 2025, during which time he provided general advisory services on business operations. Mr. Silbert previously served on the board of directors of Grayscale from February 2020 to December 2023. Mr. Silbert has served on the board of directors of Digital Currency Group International Investments Ltd. since April 2021. Mr. Silbert graduated with honors from the Goizueta Business School of Emory University.

***Mark Shifke*** is the Chief Financial Officer of DCG and has served on the board of directors of Grayscale since January 2024. Since March 2021, Mr. Shifke has served on the board of directors of Dock Ltd., a full-stack payments and digital banking platform. Since September 2023, Mr. Shifke has served on the board of directors of Luno, a cryptocurrency platform. Mr. Shifke has nearly four decades of financial and fintech experience and more than eight years of CFO experience leading two publicly traded companies. Prior to joining DCG in 2023, Mr. Shifke served as CFO of Billtrust, a company focused on providing accounts receivable and cloud-based solutions around payments, from 2020 to 2023, and as CFO of Green Dot (NYSE: GDOT), a mobile banking company and payments platform, from 2015 to 2019. Previously, Mr. Shifke led teams at JPMorgan Chase and Goldman Sachs, specializing in M&A Structuring and Advisory, as well as Tax Asset Investments. Mr. Shifke also served as the Head of International Structured Finance Group at KPMG. Mr. Shifke began his career at Davis Polk, where he was a partner. He is a graduate of Tulane University (B.A./J.D.) and the New York University School of Law (LL.M. in Taxation).

***Matt Kummell*** is the Senior Vice President of Institutional and Enterprise at NEAR Foundation and has served as a director of Grayscale since January 2024. In his anticipated role at NEAR Foundation, Mr. Kummell will lead efforts to engage institutional and enterprise businesses with the NEAR Protocol ecosystem. From December 2023 through June 2025, Mr. Kummell served as a member of the board of directors of Foundry, a digital asset mining and staking company. Until November 2023, Mr. Kummell served on the board of directors of CoinDesk, Inc., a digital media, events and information services company. Until January 2012, Mr. Kummell served on the board of directors of Derivix Corporation, a financial services software company. From 2021 to July 2025, Mr. Kummell was Senior Vice President of Strategy at Digital Currency Group. From 2018 to 2021, he served as Head of North America for Citi's Business Advisory Services team, a strategic consulting group within Citi's Markets division focused on institutional investor clients. Earlier in his career, Mr. Kummell held strategic and front-office roles at Citadel, Balyasny Asset Management, and S.A.C. Capital Advisors (the predecessor to Point72 Asset Management). He also worked as a Case Team Leader at Bain & Company in its Boston office. From 2020 to 2025, Mr. Kummell was an Adjunct Professor at the Tuck School of Business at Dartmouth College. He holds a B.A. from the University of California, Los Angeles, and an M.B.A. from the Tuck School of Business at Dartmouth College.

## **Controlled Company Exemption** 
Upon completion of this offering, DCG will control approximately % of the voting power of our shares of Class A common stock (or % if the underwriters exercise in full their option to purchase additional shares of Class A common stock). As a result, we will be a "controlled company" as defined under the corporate governance rules of the and, therefore, will qualify for exemptions from certain corporate governance requirements of the . Accordingly, we will not be required to have a majority of "independent directors" on the board as defined under the rules of the , and we will not be required to have a compensation committee or a nominating and corporate governance committee, in each case composed entirely of independent directors. We may take advantage of one or more of these exemptions following the completion of this offering. As a result, you may not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance requirements of the .

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The "controlled company" exemption does not modify the independence requirements for the Audit Committee, and we intend to comply with the applicable requirements of the Exchange Act and the within the applicable transition periods. As a result, we expect that the Audit Committee will be composed of (1) at least one independent director on the effective date of the registration statement of which this prospectus is a part, (2) a majority of independent directors within 90 days following the effective date of the registration statement of which this prospectus is a part and (3) exclusively independent directors within one year following the effective date of the registration statement of which this prospectus is a part.

In the event that we cease to be a "controlled company," to the extent we have not done so already, we will be required to fully implement the corporate governance requirements of the within the applicable transition periods.

## **Board Structure and Compensation of Directors** 
Upon completion of this offering, our board of directors will consist of members. Our board has determined that each of , and , is independent under applicable rules.

Our directors will be divided into three classes serving staggered three-year terms. Class I, Class II and Class III directors will serve until our annual meetings of stockholders in 2026, 2027 and 2028, respectively. At each annual meeting of stockholders, directors will be elected to succeed the class of directors whose terms have expired. Our directors will be divided among the three classes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Class I directors will be , and , whose terms will expire at the annual stockholders' meeting to be held in 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Class II directors will be , and , whose terms will expire at the annual stockholders' meeting to be held in 2027; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Class III directors will be , and , whose terms will expire at the annual stockholders' meeting to be held in 2028.

This classification of our board of directors could have the effect of increasing the length of time necessary to change the composition of a majority of the board of directors. In general, at least two annual meetings of stockholders will be necessary for stockholders to effect a change in a majority of the members of the board of directors.

Directors who are also full-time officers or employees of our company will receive no additional compensation for serving as directors. All other directors will receive an annual retainer of $. Each non-employee director also will receive a fee of $ for each board meeting and each committee meeting attended. In addition, the chairperson of the audit committee will receive an annual fee of $, and the chairperson of the nominating, governance and compensation committee will receive an annual fee of $. Each non-employee director also will receive an annual grant of restricted stock under our 20 long-term incentive plan having a fair market value (as defined in the plan) of $.

## **Board Committees** 
***Audit Committee***

The members of our audit committee are , and . is the chairperson of our audit committee. The composition of our audit committee meets the requirements for independence under the current listing standards and SEC rules and regulations. Each member of our audit committee is financially literate. In addition, our board of directors has determined that is an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K promulgated under the Securities Act of 1933, as amended (the "Securities Act"). This designation does not impose on them any duties, obligations or liabilities that are greater than are generally

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imposed on members of our audit committee and our board of directors. Our audit committee is directly responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•selecting a firm to serve as the independent registered public accounting firm to audit our financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•ensuring the independence of the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•discussing the scope and results of the audit with the independent registered public accounting firm and reviewing, with management and that firm, our interim and year-end operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•establishing procedures for employees to anonymously submit concerns about questionable accounting or audit matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•considering the adequacy of our internal controls and internal audit function;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reviewing material related person transactions or those that require disclosure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•approving or, as permitted, pre-approving all audit and non-audit services to be performed by the independent registered public accounting firm.

***Compensation Committee***

The members of our compensation committee are , and . is the chairperson of our compensation committee. Each member of this committee is a non-employee director, as defined by Rule 16b-3 promulgated under the Exchange Act, and meets the requirements for independence under the current listing standards and SEC rules and regulations. Our compensation committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reviewing and approving, or recommending that our board of directors approve, the compensation and terms of any compensatory agreements of our executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reviewing and recommending to our board of directors the compensation of our directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•administering our stock and equity incentive plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reviewing and approving, or making recommendations to our board of directors with respect to, incentive compensation and equity plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reviewing our overall compensation philosophy.

***Nominating and Governance Committee***

The members of our nominating and governance committee are , and . is the chairperson of our nominating and governance committee. and meet the requirements for independence under the current listing standards. Our nominating and governance committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•identifying and recommending candidates for membership on our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reviewing and recommending our corporate governance guidelines and policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reviewing proposed waivers of the code of conduct for directors and executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•overseeing the process of evaluating the performance of our board of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•assisting our board of directors on corporate governance matters.

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## **Code of Business Conduct and Ethics** 
In connection with this offering, our board of directors will adopt a code of business conduct and ethics that applies to all of our employees, officers and directors, including our Chief Executive Officer, Chief Financial Officer and other executive and senior financial officers. Upon completion of this offering, the full text of our code of business conduct and ethics will be posted on the investor relations section of our website. We intend to disclose future amendments to our code of business conduct and ethics, or any waivers of such code, on our website or in public filings.

## **Compensation Committee Interlocks and Insider Participation** 
None of our executive officers has served as a member of a compensation committee (or if no committee performs that function, the board of directors) of any other entity that has an executive officer serving as a member of our board of directors.

## **Indemnification of Officers and Directors** 
Our amended and restated certificate of incorporation will provide that we will indemnify our directors and officers to the fullest extent permitted by the Delaware General Corporation Law ("DGCL"). We will establish directors' and officers' liability insurance that insures such persons against the costs of defense, settlement or payment of a judgment under certain circumstances. Our amended and restated certificate of incorporation will provide that our directors will not be liable for monetary damages for breach of fiduciary duty, except for liability relating to any breach of the director's duty of loyalty, acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, violations under Section 174 of the DGCL or any transaction from which the director derived an improper personal benefit. We will enter into indemnification agreements with each of our directors and executive officers. These agreements, among other things, will require us to indemnify each director and executive officer to the fullest extent permitted by Delaware law, including indemnification of expenses such as attorneys' fees, judgments, fines and settlement amounts incurred by the director or executive officer in any action or proceeding, including any action or proceeding by or in right of us, arising out of the person's services as a director or executive officer.

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# **Executive and Director Compensation** 
This section discusses the material components of the executive compensation program for our executive officers who were "named executive officers" for fiscal 2024. For fiscal 2024, our "named executive officers", or "NEOs", and their positions were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Peter Mintzberg, current Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Edward McGee, Chief Financial Officer and Interim Principal Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•David LaValle, former Sr. Managing Director, Global Head of ETFs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Hugh Ross, former Chief Operating Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Michael Sonnenshein, former Chief Executive Officer.

## **Summary Compensation Table** 
The following table sets forth information concerning the compensation paid to our NEOs during our fiscal year ended December 31, 2024.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary** | **Bonus**<sup>(6)</sup> | **Stock<br>Awards** | **Option<br>Awards** | **All Other<br>Compensation** | **Total** | **Total** |
| Peter Mintzberg |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer<sup>(1)</sup> | 2024 | $225000 | $1200000 |  |  | $— | $— | 1425500 |
| Edward McGee<sup>(2)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer and<br> Interim Principal<br> Executive Officer | 2024 | $500000 | $1000000 |  |  | $17250<br><sup>(7)</sup> | $— | 1517250 |
| David LaValle<sup>(3)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Former Sr. Managing Director,<br> Global Head of ETFs | 2024 | $550000 | $800000 |  |  | $17250<br><sup>(7)</sup> | $— | 1367250 |
| Hugh Ross<sup>(4)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Former Chief Operating<br> Officer | 2024 | $550000 | $700000 |  |  | $17250<br><sup>(7)</sup> | $— | 1267250 |
| Michael Sonnenshein<sup>(5)</sup> |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Former Chief Executive<br> Officer | 2024 | $217853 |  |  |  | $6845692<br><sup>(7)(8)</sup> | $7063545 | 7063545 |

---

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(1)Mr. Mintzberg commenced employment as our Chief Executive Officer effective August 15, 2024.

(2)Mr. McGee served as interim principal executive officer from May 16, 2024 until August 15, 2024.

(3)Mr. LaValle's employment with us terminated on July 29, 2025.

(4)Mr. Ross' employment with us terminated on May 31, 2025.

(5)Mr. Sonnenshein served as our Chief Executive Officer until May 16, 2024.

(6)Represents discretionary annual performance bonuses earned and paid in 2025 for 2024 performance. For additional detail, see "2024 Cash Incentive Bonuses" below.

(7)Includes $17,250 in 401(k) matching contributions on behalf of our named executive officers.

(8)Includes the following payments made in connection with Mr. Sonnenshein's termination of employment: (i) a $78,145.02 health and welfare payment; (ii) $750,272.82 for the value of accelerated vesting of outstanding DCG Options (as defined below); and (iii) $6,000,024.14 for DCG equity repurchased in 2024.

## **Employment Agreements & Restrictive Covenants** 
The following summaries describe the terms of the employment arrangements with each of our current NEOs. Please see "Severance Arrangements" below for a description of the arrangements entered into in connection with Mr. Sonnenshein's separation of employment.

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***Peter Mintzberg Employment Agreement***

On May 16, 2024, we entered into an employment agreement with Mr. Mintzberg, pursuant to which he commenced employment as our Chief Executive Officer effective August 15, 2024, and which was amended and restated effective as of March 19, 2025 (the "Mintzberg Employment Agreement").

The Mintzberg Employment Agreement provides for Mr. Mintzberg's employment as our CEO for an indefinite term, with an annual base salary of $600,000, an annual target bonus opportunity of up to 200% of his base salary (which, for 2024, was guaranteed at target levels) and an initial award of stock options to purchase shares of Class A common stock of GSOIH ("Grayscale Options"). The terms of the Grayscale Options are described under "Equity Incentive Compensation—Grayscale Equity Awards" below.

In the event of a termination of Mr. Mintzberg's employment by us without "cause" or by Mr. Mintzberg for "good reason" (each as defined in the Mintzberg Employment Agreement), other than in connection with a change in control (as described below), subject to Mr. Mintzberg's timely execution and non-revocation of a general release of claims, Mr. Mintzberg will be entitled to receive: (i) a lump sum cash severance payment equal to two times his then-current base salary (the "Cash Severance"), (ii) payment of or reimbursement for the amount of any Company-provided premiums pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") under our medical and dental benefit plans until the earliest to occur of (x) 12 months following the termination date and (y) the date on which he becomes eligible for group health coverage from another employer (the "COBRA Continuation"), (iii) a lump sum pro-rata target bonus equal to 50% of his target bonus opportunity (the "Pro-Rata Target Bonus"), (iv) accelerated vesting of any then-outstanding equity awards as though he had remained employed through the first anniversary of the termination date and (v) a lump sum payment in the amount of any earned but unpaid bonus for the year prior to termination (the "Prior Year Bonus").

If Mr. Mintzberg's employment is terminated by us without cause or by Mr. Mintzberg for good reason, in each case during the period beginning as of the entry into a definitive agreement that would result in a "change in control" (as defined in the Omnibus Incentive Plan (as defined below)) and ending 24 months following such change in control, subject to Mr. Mintzberg's timely execution and non-revocation of a general release of claims, Mr. Mintzberg will be entitled to receive: (i) the Cash Severance, (ii) the COBRA Continuation, (iii) the Pro-Rata Target Bonus, (iv) the Prior Year Bonus and (v) any then-outstanding equity awards will vest in full (the "Full Equity Acceleration").

If Mr. Mintzberg's employment is terminated due to his death or "disability" (as defined in the Mintzberg Employment Agreement), subject to Mr. Mintzberg's timely execution and non-revocation of a general release of claims, Mr. Mintzberg will receive: (i) the COBRA Continuation, (ii) the Pro-Rata Target Bonus, (iii) the Prior Year Bonus and (iv) the Full Equity Acceleration.

***Other Current Named Executive Officers***

In March 2025, the board approved a form of executive employment agreement intended to be entered into with each of our current NEOs (other than Mr. Mintzberg). The employment agreement generally sets forth the NEO's annual base salary, annual bonus opportunity, participation in our equity incentive plans and health and welfare benefit plans, and certain entitlements to separation pay and benefits in the event of an involuntary termination of employment. These employment agreements have not yet been entered into, and will be described in more detail once finalized and executed.

***Restrictive Covenants***

As a condition to employment with us, each of our current NEOs is subject to restrictive covenants regarding confidentiality (in perpetuity), non-solicitation of customers and employees (during employment and for 12 months post-termination), non-competition (during employment and for 12 months post-termination) and assignment of intellectual property.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **2024 Cash Incentive Bonuses** 
Each of our NEOs was eligible to receive a cash incentive bonus in 2024 on terms approved by the board. For 2024, target bonus opportunities for each of our current NEOs were as follows: (i) Mr. Mintzberg, up to 200% of base salary, (ii) Mr. McGee, 150% of base salary, (iii) Mr. LaValle, 200% of base salary and (iv) Mr. Ross, 200% of base salary. Bonuses are generally paid to our NEOs in January of the following year based on the board's determination, in its discretion, of Company and individual performance and subject to the individual's continued employment through the payment date. For 2024, factors that were considered by the board in determining the achievement of Company performance included Company revenue, EBITDA, assets under management, capital raised and number of products launched. Our NEOs received the following cash incentive bonuses for 2024: (i) Mr. Mintzberg, $1,200,000; (ii) Mr. McGee, $1,000,000; (iii) Mr. LaValle, $800,000; and (iv) Mr. Ross, $700,000. As noted above, for 2024, Mr. Mintzberg's bonus was guaranteed at target levels. In connection with his separation of employment, Mr. Sonnenshein did not receive a 2024 bonus.

## **Equity Incentive Compensation** 
***DCG Equity Awards***

Prior to 2025, our NEOs were eligible to receive awards of stock options to purchase shares of DCG common stock under the Digital Currency Group, Inc. 2016 Stock Option and Grant Plan ("DCG Options") and/or stock appreciation rights ("SARs") in respect of DCG common stock under the DCG Stock Appreciation Rights Plan ("DCG SARs"). The terms of each of the DCG Options and DCG SARs provide generally that they will vest as to 25% on either the grant date or the first anniversary thereof and will vest as to 6.5% of the remaining DCG Options or DCG SARs, as applicable, on each three-month anniversary of the initial vesting date. The number of outstanding DCG Options and DCG SARs held by each NEO that were outstanding as of December 31, 2024 are set forth in the "Outstanding Equity Awards at Fiscal Year-End" table below.

***Grayscale Equity Awards***

On March 19, 2025, the board approved the adoption of the GSO Intermediate Holdings Corporation Omnibus Incentive Plan (the "Omnibus Incentive Plan") for the purpose of granting equity awards to our employees with respect to shares of GSOIH Class A common stock. The material terms of the Omnibus Incentive Plan are described under "Omnibus Incentive Plan" below.

The Board approved grants of Grayscale Options to each of our current NEOs under the Omnibus Incentive Plan, each with a $24.24 per share exercise price, as follows:

---

| | |
|:---|:---|
| **Name** | **Grayscale<br>Options (#)** |
| Peter Mintzberg | 1,000,000 (Tranche 2) |
| Edward McGee | 33,684 (Tranche 1) |
|  | 206,589 (Tranche 2) |
| David LaValle | 35,526 (Tranche 1) |
|  | 237,884 (Tranche 2) |
| Hugh Ross | 35,526 (Tranche 1) |
|  | 173,084 (Tranche 2) |

---

The Grayscale Options noted as "Tranche 1" in the table above have a vesting commencement date of January 1, 2025 and were 25% vested as of such date, with the remaining 75% vesting as to 6.25% every three months thereafter such that the Grayscale Options will vest in full on January 1, 2028, subject to the NEO's continued employment through each vesting date (except as described below). The Grayscale Options noted as "Tranche 2" in the table above have a vesting commencement date of January 1, 2025 (or August 15, 2024 in the case of Mr. Mintzberg) and vest as to 25% on the first anniversary of the vesting commencement date, with the remaining 75% vesting as to 6.25% every three months thereafter, such that the Grayscale Options will vest in full on the fourth

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anniversary of the vesting commencement date, subject to the NEO's continued employment through each vesting date (except as described below). The terms of the Grayscale Options provide generally that they are not exercisable by the NEO without the board's consent prior to an initial public offering of GSOIH (or its successor in an IPO). As a result, it is expected that following the completion of this offering, any Grayscale Options that are or have become vested will be freely exercisable by the NEO (subject to the terms and conditions of the Grayscale Options).

In the event of the NEO's termination of employment due to his death or "disability" (as defined in the Omnibus Incentive Plan) on or following the date of this offering, (i) any Grayscale Options that would have vested during the 12-month period following the termination date will vest and (ii) any Grayscale Options that are or become vested as of the termination date will remain outstanding and be exercisable by the NEO for a period of one year following the termination date (subject to earlier expiration of the term). In the event of a termination of employment by us for "cause" (as defined in the Omnibus Incentive Plan) or a restrictive covenant breach, any Grayscale Options, whether vested or unvested, will be immediately forfeited for no consideration. In the event of a termination of employment for any other reason, any Grayscale Options that are unvested as of the termination date will be forfeited and any Grayscale Options that are vested as of the termination date will remain outstanding and be exercisable in accordance with its terms.

In the event of a "change in control" (as defined in the Omnibus Incentive Plan), any Grayscale Options that are vested as of immediately prior to such change in control will be canceled in exchange for a payment based on the same consideration that is paid to shareholders generally (with any cash payment based on the excess (if any) of the fair market value of our shares of Class A common stock over the exercise price).

***Omnibus Incentive Plan***

The board adopted the Omnibus Incentive Plan in March 2025 for the purpose of granting awards to our executives and key employees with respect to shares of Class A common stock of GSOIH. As of April 1, 2025, there were outstanding under the Omnibus Incentive Plan Grayscale Options with respect to 2,829,462 shares and SARs in respect of Class A common stock of GSOIH ("Grayscale SARs") with respect to 1,116,584 shares, each having an exercise or hurdle price, as applicable, of $24.24 per share. In connection with this offering, it is expected that the outstanding Grayscale Options and Grayscale SARs will be converted into options and SARs, respectively, with respect to shares of our Class A common stock, with the number of shares and the exercise or hurdle price, as applicable, adjusted on a proportionate basis. The following summary describes the material terms of the Omnibus Incentive Plan as currently in effect.

*Types of Awards.* Awards under the Omnibus Incentive Plan include stock options (including options intended to qualify as incentive stock options under Section 422 of the Code ("ISOs")), and nonqualified stock options, SARs, restricted stock, restricted stock units ("RSUs"), performance awards, other cash-based awards and other share-based awards. We refer to such awards together as "Awards."

*Plan Administration.* The Omnibus Incentive Plan will be administered by the board or any committee of the board designated to administer the Omnibus Incentive Plan (the "Administrator"). To the extent permitted by applicable law, the Administrator may delegate some or all of its authority under the Omnibus Incentive Plan, including the authority to grant Awards, to one or more committees of the board (which may consist of solely one board member) or to one or more officers of the Company.

*Eligibility.* Employees, non-employee directors, and consultants are eligible to be selected to participate in the Omnibus Incentive Plan.

*Authorized Shares.* Subject to adjustment as described below, the maximum number of shares of GSOIH Class A common stock authorized for issuance under the Omnibus Incentive Plan may not exceed 10,000,000 shares. The maximum number of shares that may be issued upon the exercise of ISOs under the Omnibus Incentive Plan is 10,000,000 shares.

In general, to the extent that any Awards are forfeited, cancelled, expire or otherwise lapses or are settled, in whole or in part, without the delivery of shares, those shares will again become available for grant under the Omnibus

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Incentive Plan. In addition, shares withheld in respect of taxes relating to any Award and Shares tendered or withheld to pay the exercise price of options will again become available for issuance under the Omnibus Incentive Plan.

*Options.* The Administrator is permitted to grant stock options under the Omnibus Incentive Plan. The exercise price of a stock option may not be less than the fair market value of a share on the grant date (other than in the case of Awards granted in assumption of, or in substitution for, an outstanding award previously granted by a company or other business acquired by the Company or with which the Company combines, which we refer to as "Substitute Awards"). Each option will expire no later than the tenth anniversary of the date the option is granted.

*Share Appreciation Rights.* The Administrator is permitted to grant SARs under the Omnibus Incentive Plan. The exercise or hurdle price of a SAR may not be less than the fair market value of a share on the grant date (other than in the case of Substitute Awards). Each SAR will expire no later than the tenth anniversary of the date the SAR is granted.

*Restricted Stock and Restricted Stock Units.* The Administrator is permitted to grant restricted stock awards and RSUs under the Omnibus Incentive Plan. A restricted stock award is an award of shares that is subject to restrictions on transfer and a substantial risk of forfeiture. An RSU is an award that is granted with respect to one share or has a value equal to the fair market value of one such share. RSUs may be paid in cash, shares, other Awards, other property or any combination thereof, as determined in the full and sole discretion of the Administrator.

*Performance Awards.* The Omnibus Incentive Plan permits the grant of performance-based stock and/or cash Awards. The Administrator may structure Awards so that shares, cash, other property or any combination thereof will be issued or paid only following the achievement of certain pre-established performance goals during a designated performance period determined by the Administrator.

*Other Cash-Based and Other Share-Based Awards.* The Administrator is permitted to grant other equity or equity-based Awards and cash-based Awards on such terms and conditions as the Administrator will determine, subject to limitations under applicable law. For Awards in the nature of a purchase right, the shares will be purchased by such methods and in such forms as determined by the Administrator.

*Changes in Capitalization.* If the Administrator determines that, as a result of a change affecting the Company or its securities, an adjustment is necessary or advisable in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Omnibus Incentive Plan or to otherwise account for changes in the share capital and structure of the Company, the Administrator will equitably adjust any or all of (i) the number and type of shares (or other securities) which thereafter may be made the subject of Awards under the Omnibus Incentive Plan (including the share limit and the ISO limit) and (ii) the terms of any outstanding Award, including the exercise price, the number or type of shares or other securities of the Company or other property subject to outstanding Awards and/or other terms and conditions of outstanding Awards, including the performance criteria of any performance awards.

*Effect of Termination of Service or a Change in Control.* The Administrator may provide, by rule or regulation or in any applicable Award agreement, or may determine in any individual case, an Award may be exercised, settled, vested, paid, repurchased or forfeited in the event of a participant's termination of service prior to the vesting, exercise or settlement of such Award.

Upon a Change in Control (as defined in the Omnibus Incentive Plan), the Administrator may take any one or more of the following actions with respect to any outstanding Award (which need not be uniform across Awards or participants): (i) continuation or assumption of Awards by the successor or surviving entity or its parent, (ii) substitution or replacement of Awards by the successor or surviving entity or its parent with cash, securities, rights or other property with substantially the same terms and value as such Awards, (iii) acceleration of the vesting of Awards and the lapse of any restrictions thereon and, in the case of options or SARs, acceleration of the right to exercise such Award during a specified period, in each case either (A) immediately prior to or as of the date of the change in control, (B) upon a participant's involuntary termination of eservice on or within a specified period following the change in control or (C) upon the failure of the successor or surviving entity to continue or assume such Award, (iv) in the case of a performance Award, the determination of the level of attainment of the applicable performance condition(s), and

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(v) cancellation of such Award in consideration of a payment in cash, securities or other property or, in certain circumstances, for no consideration.

*Lock-Up Period.* Except as otherwise provided by the board, any shares acquired by a participant pursuant to an Award may not be transferred or otherwise disposed of until the expiration of a lock-up period not to exceed days following an initial public offering.

*Clawback.* Under the Omnibus Incentive Plan, Awards (including any amounts or benefits arising from such Awards) will be subject to any clawback or recoupment arrangements or policies the Company has in place from time to time, and the Administrator may, to the extent permitted by applicable law and stock exchange rules or by any applicable Company policy or arrangement, and will, to the extent required, cancel or require reimbursement of any Awards or any shares issued or cash received upon vesting, exercise or settlement of any such Awards or sale of shares underlying such Awards.

*Amendment.* Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award agreement or in the Omnibus Incentive Plan, our Board may amend, alter, suspend, discontinue or terminate the Omnibus Incentive Plan or any portion thereof at any time; provided that no such amendment, alternation, suspension, discontinuation or termination shall be made without (i) shareholder approval if such approval is required by applicable law or stock market or exchange rules or (ii) subject to certain exceptions, the consent of the affected participant of the Omnibus Incentive Plan, if such action would materially adversely affect the rights of such participant under any outstanding Award.

*Term.* No Award may be granted under the Omnibus Incentive Plan after the earliest of (i) March 19, 2035, (ii) the maximum number of shares available for issuance under the Omnibus Incentive Plan have been issued or (iii) the board terminates the Omnibus Incentive Plan. Previously granted Awards are permitted to extend beyond the termination date of the Omnibus Incentive Plan.

## **Retention Bonuses** 
In July 2024, each of Messrs. McGee, LaValle and Ross was awarded a cash retention bonus in the amount of $250,000, $183,333 and $183,333, respectively (the "Retention Bonuses"), pursuant to the terms of a retention letter which provides for payment of the retention bonus on May 16, 2025, subject to the NEO's continued employment and performance of duties through such date. In the event of the NEO's termination of employment prior to the payment date for any reason other than for "cause" (as defined in the applicable retention letter), the NEO will receive payment of the full amount of the Retention Bonus within 30 days of the termination date. Each of the Retention Bonuses has been paid in full pursuant to the terms of the retention letters.

## **Mr. Sonnenshein Separation Agreement** 
On June 25, 2024, we entered into a separation agreement with Mr. Sonnenshein which governed the terms and conditions of his separation of employment effective as of May 16, 2024 (the "Sonnenshein Separation Agreement"). The Sonnenshein Separation Agreement provided for Mr. Sonnenshein's receipt of the following separation pay and benefits, subject to his execution and non-revocation of a release of claims and compliance with post-employment restrictive covenants: (i) a cash payment in the amount of $2,500,000, which was paid on the one-year anniversary of the termination date; (ii) a supplemental health and welfare payment of $78,145.02, payable upon execution of the Sonnenshein Separation Agreement; (iii) one year of additional vesting in respect of unvested DCG Options and DCG SARs; (iv) payment in the amount of approximately $6 million in respect of repurchased DCG SARs and shares of DCG Class B common stock; (v) payment in the amount of approximately $2.5 million in respect of additional shares of DCG Class B common stock of DCG, which was paid upon the first anniversary of the termination date; (vi) extension of the expiration date of outstanding DCG Options through the remainder of their original term; (vii) settlement of any remaining DCG SARs in shares of DCG common stock; (viii) a right to cause DCG to repurchase any remaining DCG Options, DCG SARs or shares of DCG common stock upon a Grayscale liquidity event in an amount up to $1,000,000 (provided that the liquidity event is an initial public offering) and (ix) in the event of a sale of DCG, any remaining DCG Options, DCG SARs or shares of DCG common stock may not be cancelled without payment equal to the fair market value per less the applicable exercise price.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Under the Sonnenshein Separation Agreement, Mr. Sonnenshein is subject to post-employment restrictions on confidentiality (in perpetuity), non-competition (for 12 months post-termination), non-solicitation of clients and employees (for 24 months post-termination) and non-disparagement (in perpetuity).

## **Mr. Ross Separation Agreement** 
On April 28, 2025, we entered into a separation agreement with Mr. Ross which governed the terms and conditions of his separation of employment effective as of May 31, 2025 (the "Ross Separation Agreement"). The Ross Separation Agreement provided for Mr. Ross' receipt of the following separation pay and benefits, subject to his execution and non-revocation of a release of claims and compliance with post-employment restrictive covenants: (i) a cash severance payment in the amount of $1,250,000, payable in substantially equal installments over the 12-month period following Mr. Ross' separation date; (ii) a cash payment in the amount of $191,666.67, representing a pro-rata portion of Mr. Ross' annual bonus for the 2025 calendar year; (iii) a cash payment in the amount of $183,833, representing Mr. Ross' unpaid Retention Bonus, payable within 30 days of Mr. Ross' separation date; (iv) reimbursement for any COBRA premiums paid by Mr. Ross until the earlier of (x) 12 months following Mr. Ross' separation date and (y) the date on which Mr. Ross becomes eligible for group health coverage from another employer; (v) one year of additional vesting in respect of unvested Grayscale Options; and (iv) payment in the amount of $160,239 in respect of repurchased DCG SARs and shares of DCG common stock.

Under the Ross Separation Agreement, Mr. Ross is subject to post-employment restrictions on confidentiality (in perpetuity), non-competition (for 12 months post-termination), non-solicitation of clients and employees (for 12 months post-termination) and non-disparagement (in perpetuity).

## **Retirement and Health and Welfare Benefits** 
We maintain a tax-qualified defined contribution plan (the "401(k) Plan"), in which our employees, including our NEOs, are eligible to participate. Under the 401(k) Plan, participants may defer a portion of their annual compensation on a pre-tax basis, and we will make matching contributions of 100% of the first 5% of a participant's deferrals. All of our full-time employees, including our NEOs, are also eligible to participate in customary health and welfare plans.

## **Outstanding Equity Awards at Fiscal Year-End** 
The following table sets forth information concerning outstanding equity awards for our named executive officers as of the end of our fiscal year ended December 31, 2024. Mr. Mintzberg did not hold any such awards as of December 31, 2024.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Option/SAR Awards** | **Option/SAR Awards** | **Option/SAR Awards** | **Option/SAR Awards** | **Option/SAR Awards** | **Option/SAR Awards** |
| **Name<br>(a)** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options/SAR<br>(#)<br>Exercisable<br>(b)** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options/SAR<br>(#)<br>Exercisable<br>(b)** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options/SAR<br>(#)<br>Unexercisable<br>(c)** | **Number of<br>Securities<br>Underlying<br>Unexercised<br>Options/SAR<br>(#)<br>Unexercisable<br>(c)** | **Option/SAR<br>Exercise<br>Price ($)<br>(e)** | **Option/SAR<br>Expiration<br>Date<br>(f)** |
| Edward McGee |  | 17500<br> <sup>(1)</sup> |  |  | $8.58 | 7/1/2026 |
|  |  | 2925<br> <sup>(1)</sup> | 675 | 675<br> <sup>(1)</sup> | $112.05 | 9/21/2031 |
|  |  | 3358<br> <sup>(1)</sup> |  | 5596<br> <sup>(1)</sup> | $27.93 | 5/29/2033 |
| David LaValle |  | 5443<br> <sup>(1)</sup> |  | 1257<br> <sup>(1)</sup> | $112.05 | 6/14/2031 |
|  |  | 3358<br> <sup>(1)</sup> |  | 5596<br> <sup>(1)</sup> | $27.93 | 5/29/2033 |
| Hugh Ross |  | 11790<br> <sup>(1)</sup> |  | 3610<br> <sup>(1)</sup> | $65.02 | 1/14/2031 |
|  |  | 3358<br> <sup>(1)</sup> |  | 5596<br> <sup>(1)</sup> | $27.93 | 5/29/2033 |
|  |  | 5035<br> <sup>(2)</sup> |  | 2290<br> <sup>(2)</sup> | $136.52 | 3/3/2032 |
| Michael Sonnenshein | 15400 | 15400<br> <sup>(3)</sup> |  |  | $65.02 | 2/12/2031 |
|  | 7700 | 7700<br> <sup>(3)</sup> |  |  | $65.02 | 2/12/2031 |
|  | 47661 | 47661<br> <sup>(3)</sup> |  |  | $136.52 | 3/4/2032 |
|  | 4475 | 4475<br> <sup>(3)</sup> |  |  | $55.87 | 5/16/2034 |

---

------

(1)Represents DCG SARs held by the NEOs with respect to shares of DCG common stock. See "Equity Incentive Compensation—DCG Equity Awards" above for a description of the vesting terms applicable to these awards.

(2)Represents DCG Options held by Mr. Ross with respect to shares of DCG common stock. See "Equity Incentive Compensation—DCG Equity Awards" above for a description of the vesting terms applicable to these awards.

(3)Represents DCG Options that are fully vested.

## **Compensation of our Directors** 
We currently do not maintain a director compensation program or policy in which our non-employee directors participate, and in 2024, none of our non-employee directors received any compensation in respect of their services to the Company.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Certain Relationships and R elated Person Transactions** 
We describe below transactions and series of similar transactions, during our last three fiscal years or currently proposed, to which we were a party or will be a party, in which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the amounts involved exceeded or will exceed $120,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any of our directors, executive officers or beneficial holders of more than 5% of any class of our capital stock had or will have a direct or indirect material interest.

Other than as described below, there have not been, nor are there any currently proposed, transactions or series of similar transactions meeting these criteria to which we have been or will be a party other than compensation arrangements, which are described where required under "Management—Board Structure and Compensation of Directors" and "Executive and Director Compensation."

## **Reorganization Agreement** 
In connection with the IPO Reorganization, we will enter into a reorganization agreement ‎and related agreements with Grayscale Operating, LLC and each of the Pre-IPO LLC Members, ‎which will effect the IPO Reorganization.‎

The table below sets forth the consideration in LLC Units and Class B common stock to ‎be received by our directors, officers and 5% stockholders in the IPO Reorganization:

---

| | |
|:---|:---|
| **Name** | **Class‎ ‎B‎ <br>common‎ stock‎ <br>and‎ LLC‎ ‎Units‎ <br>to‎ be‎ ‎issued<br>in‎ ‎the‎ <br>Reorganization‎ <br>Transactions** |
| **Directors and executive officers** |  |
| Peter Mintzberg |  |
| Edward McGee |  |
| Diana Zhang |  |
| Craig Salm |  |
| Barry Silbert |  |
| Mark Shifke |  |
| Matthew Kummell |  |
| **5% stockholders** |  |
| DCG Grayscale Holdco<sup>(1)</sup> |  |
| GSO Intermediary Holdings Corporation<sup>(1)</sup> |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Each of DCG Grayscale Holdco, LLC and GSO Intermediate Holdings Corporation is controlled by Digital Currency Group, Inc.

## **Amended LLC Agreement** 
In connection with the IPO Reorganization, Grayscale Holdings, Grayscale Operating, LLC and each of ‎the Pre-IPO LLC Members will enter into the Amended LLC Agreement. Following the IPO Reorganization, and in accordance with the terms of the Amended LLC Agreement, we will operate our ‎business through Grayscale Operating, LLC. ‎Pursuant to the terms of the Amended LLC Agreement, so long as the Pre-IPO LLC Members ‎continue to own any LLC Units or securities redeemable or exchangeable into shares of our Class A ‎common stock, we will not, without the prior written consent of such holders, engage in any business ‎activity other than the management and ownership of Grayscale Operating, LLC or own any assets other ‎than securities of Grayscale Operating, LLC and/or any cash or other property or assets distributed by or ‎otherwise received from Grayscale

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Operating, LLC, unless we determine in good faith that such actions or ‎ownership are in the best interest of Grayscale Operating, LLC.‎

As the sole managing member of Grayscale Operating, LLC, we will have control over all of the affairs ‎and decision making of Grayscale Operating, LLC. As such, through our officers and directors, ‎we will be responsible for all operational and administrative decisions of Grayscale Operating, LLC and the day-to-day management of Grayscale Operating, LLC's business. ‎

The holders of LLC Units will generally incur U.S. federal, state and local income taxes on their ‎proportionate share of any net taxable income of Grayscale Operating, LLC. Net profits and net losses of Grayscale Operating, LLC will generally be allocated to its ‎members pro rata in accordance with the percentages of their respective ownership of LLC Units, ‎though certain non-pro rata adjustments will be made to reflect tax depreciation, amortization and ‎other allocations. The Amended LLC Agreement will provide for pro rata cash distributions to the ‎holders of LLC Units for purposes of funding their tax obligations in respect of the taxable income of ‎Grayscale Operating, LLC that is allocated to them. Generally, these tax distributions will be ‎computed based on Grayscale Operating, LLC's estimate of the net taxable income of Grayscale Operating, LLC allocable to each holder of LLC Units multiplied by an assumed tax rate equal ‎to the highest effective marginal combined U.S. federal, state and local income tax rate prescribed for ‎an individual or corporate resident of Connecticut (taking into account the non-deductibility of certain ‎expenses and the character of our income).‎

Except as otherwise determined by us, if at any time we issue a share of our Class A common ‎stock, the net proceeds received by us with respect to such share, if any, shall be concurrently ‎invested in Grayscale Operating, LLC, and Grayscale Operating, LLC shall issue to us one LLC Unit (unless such ‎share was issued by us solely to fund the purchase of an LLC Unit from a holder of LLC Units (upon ‎an election by us to exchange such LLC Unit in lieu of redemption following a redemption request by ‎such holder of LLC Units in which case such net proceeds shall instead be transferred to the selling ‎holder of LLC Units as consideration for such purchase, and Grayscale Operating, LLC will not issue an ‎additional LLC Unit to us)). Similarly, except as otherwise determined by us, (i) Grayscale Operating, LLC will ‎not issue any additional LLC Units to us unless we issue or sell an equal number of shares of our ‎Class A common stock and (ii) should Grayscale Operating, LLC issue any additional LLC Units to the Pre-‎IPO LLC Members or any other person, we will issue an equal number of shares of our Class B ‎common stock to such Pre-IPO LLC Members or any other person. Conversely, if at any time any ‎shares of our Class A common stock are redeemed, purchased or otherwise acquired, Grayscale Operating, LLC will ‎redeem, purchase or otherwise acquire an equal number of LLC Units held by us, upon the same ‎terms and for the same price per security, as the shares of our Class A common stock are redeemed, ‎purchased or otherwise acquired. In addition, Grayscale Operating, LLC will not effect any subdivision (by ‎any unit split, unit distribution, reclassification, reorganization, recapitalization or otherwise) or ‎combination (by reverse unit split, reclassification, reorganization, recapitalization or otherwise) of the ‎LLC Units unless it is accompanied by substantively identical subdivision or combination, as applicable, ‎of each class of our common stock, and we will not effect any subdivision or combination of any class ‎of our common stock unless it is accompanied by a substantively identical subdivision or combination, ‎as applicable, of the LLC Units.‎

Under the Amended LLC Agreement, the holders of LLC Units (other than us) will have the right, ‎from and after the completion of this offering (subject to the terms of the Amended LLC Agreement), ‎to require Grayscale Operating, LLC to redeem all or a portion of their LLC Units for, at our election, newly ‎issued shares of Class A common stock on a one-for-one basis or a cash payment equal to the ‎volume weighted average market price of one share of our Class A common stock for each LLC Unit ‎redeemed (subject to customary adjustments, including for stock splits, stock dividends and ‎reclassifications). If we decide to make a cash payment, the holder of an LLC Unit has the option to ‎rescind its redemption request within a specified time period. Upon the exercise of the redemption ‎right, the redeeming member will surrender its LLC Units to Grayscale Operating, LLC for cancellation. The ‎Amended LLC Agreement requires that we contribute cash or shares of our Class A common stock to ‎Grayscale Operating, LLC in exchange for an amount of newly issued LLC Units in Grayscale Operating, LLC that ‎will be issued to us equal to the number of LLC Units redeemed from the holders of LLC Units. Grayscale Operating, LLC will then distribute the cash or shares of our Class A common stock to such holder of an ‎LLC Unit to complete the redemption. In the event of a redemption request by a holder of an LLC Unit, ‎we may, at our option, effect a direct exchange of cash or Class A common stock for LLC Units in lieu of such a redemption. Whether by redemption or exchange, we are obligated to ensure that at all ‎times the number of LLC Units that we or our wholly owned subsidiaries own equals the number

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

of ‎shares of Class A common stock issued by us (subject to certain exceptions for treasury shares and ‎shares underlying certain convertible or exchangeable securities). Shares of Class B common stock ‎will be cancelled on a one-for-one basis if we, following a redemption request of a holder of an LLC ‎Unit, redeem or exchange LLC Units of such holder of an LLC Unit pursuant to the terms of the ‎Amended LLC Agreement.‎

The Amended LLC Agreement provides that, in the event that a tender offer, share exchange ‎offer, issuer bid, take-over bid, recapitalization or similar transaction with respect to our Class A ‎common stock is proposed by us or our stockholders and approved by our board of directors or is ‎otherwise consented to or approved by our board of directors, the holders of LLC Units will be ‎permitted to participate in such offer by delivery of a notice of redemption or exchange that is ‎effective immediately prior to the consummation of such offer. In the case of any such offer proposed ‎by us, we are obligated to use our reasonable best efforts to enable and permit the holders of LLC ‎Units to participate in such offer to the same extent or on an economically equivalent basis as the ‎holders of shares of our Class A common stock without discrimination. In addition, we are obligated ‎to use our reasonable best efforts to ensure that the holders of LLC Units may participate in each ‎such offer without being required to redeem or exchange LLC Units.‎

Subject to certain exceptions, Grayscale Operating, LLC will indemnify all of its members and their ‎officers and other related parties, against all losses or expenses arising from claims or other legal ‎proceedings in which such person (in its capacity as such) may be involved or become subject to in ‎connection with Grayscale Operating, LLC's business or affairs or the Amended LLC Agreement ‎or any related document.‎

Grayscale Operating, LLC may be dissolved upon (i) the determination by us to dissolve ‎Grayscale Operating, LLC or (ii) any other event which would cause the dissolution of Grayscale Operating, LLC under the Delaware Limited Liability Company Act, unless Grayscale Operating, LLC is continued in accordance with the Delaware Limited Liability Company Act. Upon ‎dissolution, Grayscale Operating, LLC will be liquidated and the proceeds from any liquidation will ‎be applied and distributed in the following manner: (a) first, to creditors (including creditors who are ‎members or affiliates of members) in satisfaction of all of Grayscale Operating, LLC's liabilities ‎‎(whether by payment or by making reasonable provision for payment of such liabilities, including the ‎setting up of any reasonably necessary reserves) and (b) second, to the members in proportion to ‎their vested LLC Units.‎

## **Tax Receivable Agreement** 
As described under "Organizational Structure," acquisitions by Grayscale Holdings of ‎LLC Units from Pre-‎IPO LLC Members in connection with this offering and future ‎taxable redemptions or exchanges by the ‎Pre-IPO LLC Members of LLC Units and ‎corresponding number of shares of Class B common stock ‎for shares of our Class A ‎common stock or cash, as well as other transactions described herein, are ‎expected to ‎result in tax basis adjustments to the assets of Grayscale Operating, LLC to us and ‎‎thus produce favorable tax attributes. These tax attributes would not be available to us in ‎the absence ‎of those transactions. The anticipated tax basis adjustments are expected to ‎reduce the amount of tax ‎that we would otherwise be required to pay in the future.‎

We intend to enter into the Tax Receivable Agreement with the Pre-IPO LLC Members that will provide for the payment by us to the Pre-IPO LLC Members of % of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of (i) any increase in tax basis in Grayscale Operating, LLC's consolidated assets resulting from (a) acquisitions by Grayscale Holdings of LLC Units from the Pre-IPO LLC Members in connection with this offering, (b) the acquisition of LLC Units from the Pre-IPO LLC Members using the net proceeds from any future offering, (c) redemptions or exchanges by the Pre-IPO LLC Members of LLC Units and the corresponding number of shares of Class B common stock for shares of our Class A common stock or cash in the future or (d) payments under the Tax Receivable Agreement, and (ii) tax benefits related to imputed interest resulting from payments made under the Tax Receivable Agreement.‎

We expect that, as a result of the increases in the tax basis ‎of the tangible ‎and intangible assets of Grayscale Operating, LLC attributable to the redeemed ‎or exchanged LLC Units, the ‎payments that we may make to the existing Pre-IPO LLC ‎Members could be substantial. For example, ‎if we acquired all of the LLC Units of the ‎Pre-IPO LLC Members in taxable transactions as of this ‎offering, based on an initial ‎public offering price of $ per share (the midpoint of the estimated ‎initial public ‎offering price range set forth on the cover page of this prospectus) and on certain ‎‎assumptions, including that (i) there are no material changes in relevant tax law and (ii) ‎we earn ‎sufficient

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

taxable income in each year to realize on a current basis all tax ‎benefits that are subject to ‎the Tax Receivable Agreement, we expect that the resulting ‎reduction in tax payments for us, as ‎determined for purposes of the Tax Receivable ‎Agreement, would aggregate to approximately $, substantially all of ‎which would be realized over the next 15 years, and we would be required to ‎pay the ‎Pre-IPO LLC Members % of such amount, or $, over the same period. ‎The ‎actual increases in tax basis with respect to future taxable redemptions, exchanges ‎or purchases of ‎LLC Units, as well as the amount and timing of any payments we are ‎required to make under the Tax ‎Receivable Agreement in respect of the acquisition of ‎LLC Units from Pre-IPO LLC Members in ‎connection with this offering or future ‎taxable redemptions, exchanges or purchases of LLC Units, may ‎differ materially from ‎the amounts set forth above because the potential future reductions in our tax ‎payments, ‎as determined for purposes of the Tax Receivable Agreement, and the payments we will ‎be ‎required to make under the Tax Receivable Agreement, will each depend on a ‎number of factors, ‎including the market value of our Class A common stock at the time ‎of redemption or exchange, the ‎prevailing federal tax rates applicable to us over the life ‎of the Tax Receivable Agreement (as well as the assumed combined state and local tax rate), the ‎amount and timing of the ‎taxable income that we generate in the future and the extent to ‎which future redemptions, exchanges ‎or purchases of LLC Units are taxable transactions.‎

Payments under the Tax Receivable Agreement are not conditioned on the Pre-‎IPO LLC ‎Members' continued ownership of us. There may be a material negative effect ‎on our liquidity if, as ‎described below, the payments under the Tax Receivable ‎Agreement exceed the actual benefits we ‎receive in respect of the tax attributes subject ‎to the Tax Receivable Agreement and/or distributions to ‎us by Grayscale Operating, LLC are ‎not sufficient to permit us to make payments under the Tax Receivable ‎Agreement.‎

In addition, although we are not aware of any issue that would cause the IRS to ‎challenge the tax basis increases or other benefits arising under the ‎Tax Receivable Agreement, ‎the Pre-IPO LLC Members will not reimburse us for any ‎payments previously made if such tax basis ‎increases or other tax benefits are ‎subsequently disallowed, except that any excess payments made to ‎the Pre-IPO LLC ‎Members will be netted against future payments otherwise to be made under the Tax ‎‎Receivable Agreement, if any, after our determination of such excess. Also, the actual state or local tax savings we may realize may be different than the amount of such tax savings we are deemed to realize under the Tax Receivable Agreement, which will be based on an assumed combined state and local tax rate applied to our reduction in taxable income as determined for U.S. federal income tax purposes as a result of the tax attributes subject to the Tax Receivable Agreement. As a result, in ‎such ‎circumstances we could make payments to the Pre-IPO LLC Members under the ‎Tax Receivable ‎Agreement that are greater than our actual cash tax savings and may not ‎be able to recoup those ‎payments, which could negatively impact our liquidity.‎

This provision of the Tax Receivable Agreement may result in situations where ‎the Pre-IPO LLC ‎Members have interests that differ from or are in addition to those of ‎our other stockholders. In ‎addition, we could be required to make payments under the ‎Tax Receivable Agreement that are ‎substantial and in excess of our, or a potential ‎acquirer's, actual cash savings in income tax.‎

Finally, because we are a holding company with no operations of our own, our ‎ability to make ‎payments under the Tax Receivable Agreement is dependent on the ‎ability of Grayscale Operating, ‎LLC to make distributions to us. To the extent that ‎we are unable to make payments under the Tax ‎Receivable Agreement for any reason, ‎such payments will be deferred and will accrue interest until ‎paid at a rate of .‎

Our obligations under the Tax Receivable Agreement will also apply with ‎respect to any person ‎who is issued LLC Units in the future and who becomes a party to ‎the Tax Receivable Agreement.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **Registration Rights Agreement** 
Prior to the consummation of this offering, we will enter into a Registration Rights Agreement with the Pre-IPO LLC Members (the "Registration Rights Agreement").‎

At any time after expiration or waiver of the lock-up for this offering, subject to several ‎exceptions, including underwriter cutbacks and our right to defer a demand registration under certain ‎circumstances, the Pre-IPO LLC Members may require that we register for public resale under the ‎Securities Act all shares of common stock constituting registrable securities that they request be ‎registered at any time following this offering so long as the securities requested to be registered in ‎each registration statement have an aggregate estimated market value of least $‎ ‎. If we become ‎eligible to register the sale of our securities on Form S-3 under the Securities Act, which will not be ‎until at least 12 months after the date of this prospectus, the Pre-IPO LLC Members have the right ‎to require us to register the sale of the registrable securities held by them on Form S-3, subject to ‎offering size and other restrictions. If we propose to register any of our securities under the Securities ‎Act for our own account or the account of any other holder (excluding any registration related to an ‎employee benefit plan or a corporate reorganization or other Rule 145 transaction), the Pre-IPO LLC ‎Members are entitled to notice of such registration and to request that we include registrable securities ‎for resale on such registration statement, and we are required, subject to certain exceptions, to ‎include such registrable securities in such registration statement.‎

We will undertake in the Registration Rights Agreement to use our reasonable best efforts to file ‎a shelf registration statement on Form S-3 to permit the resale of the shares of Class A common stock ‎issuable upon redemption or exchange of shares of Class B common stock held by Pre-IPO LLC Members.

In connection with the transfer of their registrable securities, the parties to the Registration ‎Rights Agreement may assign certain of their respective rights under the Registration Rights ‎Agreement under certain circumstances. In connection with the registrations described above, we will ‎indemnify any selling stockholders and we will bear all fees, costs and expenses (except underwriting ‎discounts and spreads).‎

## **Stockholders Agreement** 
At the closing of this offering, we will enter into the Stockholders Agreement with each of ‎the Pre-IPO LLC Members, which will provide that, until the Substantial Ownership Requirement ‎is no longer met, approval by the Pre-IPO LLC Members will be required for certain corporate ‎actions.‎

## **Indemnification Agreements** 
We expect to enter into an indemnification agreement at the closing of this offering with each of our executive officers and directors that provides, in general, that we will indemnify them to the fullest extent permitted by law in connection with their service to us or on our behalf. See "Management—Indemnification of Officers and Directors."

## **Purchases of Ownership Interests from Existing Holders** 
We intend to use all of the net proceeds from this offering, for the purchase of LLC Units from the Pre-IPO LLC Members (or LLC Units, if the underwriters exercise their option to purchase additional shares of Class A common stock in full).‎

## **Transactions with Related Persons** 
We earn a daily management fee based on the aggregate value of our investment products' assets, less liabilities. For the years ended December 31, 2024, 2023 and 2022 we earned $506.1 million, $512.7 million and $537.0 million, respectively, in management fees from our investment products. The revenue is recorded in the management fee income, related parties on our consolidated statement of operations. A portion of the management fee income was derived from the shares of our investment products held by DCG, Genesis Global Trading and Genesis Capital, wholly owned subsidiaries of DCG, and certain of our other affiliates and certain of our directors and officers.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

We have made, and may make, distributions of excess cash and digital assets to DCG. During the years ended December 31, 2024, 2023 and 2022, we distributed $289.3 million, $44.8 million and $309.8 million, respectively, in cash to DCG. During the year ended December 31, 2023, we distributed $221.8 million in digital assets to DCG. Additionally, during the years ended December 31, 2024, 2023 and 2022, we paid $94.9 million, $103.9 million and $105.7 million, respectively, to DCG as payment for income taxes.

Effective January 1, 2024, we entered into an operating lease with DCG for use of its corporate headquarters office facilities in Stamford, CT, including certain related shared services, including, but not limited to, food services, maintenance and security. The term of the operating lease commenced on January 1, 2024, and continues until January 31, 2034, unless terminated sooner by either party in accordance with the operating lease.

For the year ended December 31, 2024, 2023 and 2022 we made payments to DCG for use of the corporate headquarters and related operational expenses totaling $3.9 million, $3.6 million and $1.4 million, respectively.

## **Related Person Transaction Policy** 
Our board of directors will adopt a written related person transaction policy setting forth the policies and procedures for the review and approval or ratification of related person transactions. This policy will cover, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which we were or are to be a participant, where the amount involved exceeds $120,000 in any fiscal year and a related person had, has or will have a direct or indirect material interest, including without limitation, purchases of goods or services by or from the related person or entities in which the related person has a material interest, indebtedness, guarantees of indebtedness and employment by us of a related person. In reviewing and approving any such transactions, our audit committee will be tasked to consider all relevant facts and circumstances, including, but not limited to, whether the transaction is on terms comparable to those that could be obtained in an arm's-length transaction and the extent of the related person's interest in the transaction.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **PRINCIPAL STOCKHOLDERS** 
The following tables set forth information regarding the beneficial ownership of our common ‎stock as of ‎, 2025 (i) as adjusted to give effect to the IPO Reorganization, but prior to this ‎offering, and (ii) as adjusted to give effect to the IPO Reorganization, this offering and the ‎purchase of LLC Units from certain Pre-IPO LLC Members as described in "Use of Proceeds" by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•each person whom we know to own beneficially more than 5% of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•each of the directors and named executive officers individually; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•all directors and executive officers as a group.

The numbers of shares of common stock beneficially owned, percentages of beneficial ‎ownership and percentages of combined voting power before this offering that are set forth below are ‎based on the number of shares of Class A common stock and Class B common stock to be issued ‎and outstanding prior to this offering after giving effect to the IPO Reorganization. See ‎‎"Organizational Structure." The numbers of shares of common stock beneficially owned, percentages ‎of beneficial ownership and percentages of combined voting power after this offering that are set forth ‎below are based on the number of shares of Class A common stock and Class B common stock to be ‎issued and outstanding immediately after this offering.‎

In connection with this offering, we will issue to each Pre-IPO LLC Member one share of Class B ‎common stock for each LLC Unit such Pre-IPO LLC Member beneficially owns immediately prior to ‎the consummation of this offering. Shares of Class B common stock will be cancelled on a one-for-‎one basis if we, following a redemption request of a Pre-IPO LLC Member, redeem or exchange LLC ‎Units of such Pre-IPO LLC Member pursuant to the terms of the Amended LLC Agreement. See ‎‎"Certain Relationships and Related Person Transactions—Amended LLC Agreement." As a result, the ‎number of shares of Class B common stock listed in the tables below correlates to the number of LLC ‎Units each Pre-IPO LLC Member will beneficially own immediately after this offering. The number of ‎shares of Class A common stock listed in the tables below represents the Class A common stock that ‎will be issued in connection with this offering.‎

In accordance with the rules of the SEC, beneficial ownership includes voting or investment power with respect to securities and includes the shares issuable pursuant to stock options that are exercisable within 60 days of , 2025. Shares issuable pursuant to stock options are deemed outstanding for computing the percentage of the person holding such options but are not outstanding for computing the percentage of any other person.

The number of shares of common stock outstanding prior to the completion of this offering is based on shares of our common stock. The number of shares of Class A common stock outstanding after this offering includes shares of Class A common stock being offered for sale by us in this offering. The percentage of beneficial ownership for the following table is based on shares of common stock outstanding as of , 2025, and shares of Class A common stock outstanding after the completion of this offering assuming no exercise of the underwriters' option to purchase additional shares of Class A common stock. Unless otherwise indicated, the address for each listed stockholder is: c/o Grayscale Operating, LLC, 290 Harbor Drive, 4th Floor, Stamford, Connecticut 06902. To our knowledge, except as indicated in the footnotes to this table and pursuant to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all shares of common stock.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

The following table assumes the underwriters' option to purchase additional shares of Class A ‎common stock is not exercised.‎

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A common stock owned**<sup>(1)‎</sup> | **Class A common stock owned**<sup>(1)‎</sup> | **Class A common stock owned**<sup>(1)‎</sup> | **Class A common stock owned**<sup>(1)‎</sup> | **Class B common stock ‎owned**<sup>(2)‎</sup> | **Class B common stock ‎owned**<sup>(2)‎</sup> | **Class B common stock ‎owned**<sup>(2)‎</sup> | **Class B common stock ‎owned**<sup>(2)‎</sup> | **Combined voting power**<sup>(3)‎</sup> | **Combined voting power**<sup>(3)‎</sup> |
|  | **Before this <br>offering** | **Before this <br>offering** | **After this<br>offering** | **After this<br>offering** | **Before this<br>‎offering** | **Before this<br>‎offering** | **After this<br>offering** | **After this<br>offering** | **Before this<br>offering** | **After ‎this<br>offering** |
| **Name of beneficial owner** | **Number** | **Percentage** | **Number** | **Percentage** | **Number** | **Percentage** | **Number** | **Percentage** | **Percentage** | **Percentage** |
| **5% Beneficial Owner** |  |  |  |  |  |  |  |  |  |  |
| Digital Currency Group,<br> Inc.<sup>(4)</sup> |  |  |  |  |  |  |  |  |  |  |
| **Directors and Named<br> Executive ‎Officers** |  |  |  |  |  |  |  |  |  |  |
| Barry Silbert |  |  |  |  |  |  |  |  |  |  |
| Mark Shifke |  |  |  |  |  |  |  |  |  |  |
| Peter Mintzberg |  |  |  |  |  |  |  |  |  |  |
| Edward McGee |  |  |  |  |  |  |  |  |  |  |
| Matthew Kummell‎ |  |  |  |  |  |  |  |  |  |  |
| **All directors and<br> executive officers as a<br> group (7 persons)** |  |  |  |  |  |  |  |  |  |  |

---

------

\*‎ Less than ‎‎1%‎

The following table assumes the underwriters' option to purchase additional shares of Class A common ‎stock is exercised in full.‎

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A common stock owned**<sup>(1)‎</sup> | **Class A common stock owned**<sup>(1)‎</sup> | **Class A common stock owned**<sup>(1)‎</sup> | **Class A common stock owned**<sup>(1)‎</sup> | **Class B common stock ‎owned**<sup>(2)‎</sup> | **Class B common stock ‎owned**<sup>(2)‎</sup> | **Class B common stock ‎owned**<sup>(2)‎</sup> | **Class B common stock ‎owned**<sup>(2)‎</sup> | **Combined voting power**<sup>(3)‎</sup> | **Combined voting power**<sup>(3)‎</sup> |
|  | **Before this <br>offering** | **Before this <br>offering** | **After this<br>offering** | **After this<br>offering** | **Before this <br>offering** | **Before this <br>offering** | **After this<br>offering** | **After this<br>offering** | **Before this<br>offering** | **After ‎this <br>offering** |
| **Name of beneficial owner** | **Number** | **Percentage** | **Number** | **Percentage** | **Number** | **Percentage** | **Number** | **Percentage** | **Percentage** | **Percentage** |
| **5% Beneficial Owner** |  |  |  |  |  |  |  |  |  |  |
| Digital Currency Group,<br> Inc.<sup>(4)</sup> |  |  |  |  |  |  |  |  |  |  |
| **Directors and Named<br> Executive ‎Officers** |  |  |  |  |  |  |  |  |  |  |
| Barry Silbert |  |  |  |  |  |  |  |  |  |  |
| Mark Shifke |  |  |  |  |  |  |  |  |  |  |
| Peter Mintzberg |  |  |  |  |  |  |  |  |  |  |
| Edward McGee |  |  |  |  |  |  |  |  |  |  |
| Matthew Kummell‎ |  |  |  |  |  |  |  |  |  |  |
| **All directors and<br> executive officers as a<br> group (7 persons)** |  |  |  |  |  |  |  |  |  |  |

---

------

‎\*‎ Less than ‎‎1%‎

(1)On a fully exchanged and converted basis. Subject to the terms of the Amended LLC Agreement, LLC Units are redeemable or ‎exchangeable for shares of our Class A common stock on a one-for-one basis. Shares of Class B common stock will be cancelled on a ‎one-for-one basis if we redeem or exchange LLC Units pursuant to the terms of the Amended LLC Agreement. Beneficial ownership of ‎shares of our Class A common stock reflected in this table does not include beneficial ownership of shares of our Class A common ‎stock for which such LLC Units may be redeemed or exchanged.‎

(2)‎On a fully exchanged and converted basis. The Pre-IPO LLC Members hold all of the issued and outstanding shares of our Class ‎B common stock.‎

(3)‎Represents percentage of voting power of the Class A common stock and Class B common stock held by such persons voting together ‎as a single class. Each holder of Class A common stock and Class B common stock is entitled to votes per share on all matters ‎submitted to our stockholders for a vote. See "Description of Capital Stock—Common stock."‎

(4)Represents shares owned by DCG Grayscale Holdco, LLC and GSO Intermediate Holdings Corporation, each of which are controlled by Digital Currency Group, Inc. Digital Currency Group, Inc. is governed by its board of directors, which has ultimate voting and dispositive power with respect to these shares. Because no individual member of the board of directors has the power to direct such decisions, no natural person is deemed to hold any beneficiary ownership in these shares. The address of Digital Currency Group, Inc. is 290 Harbor Drive, 4th Floor, Stamford, CT 06902.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Description of C apital Stock** 
The following descriptions are summaries of the material terms of our amended and restated certificate of incorporation and amended and restated bylaws that will become effective upon completion of this offering. Reference is made to the more detailed provisions of, and the descriptions are qualified in their entirety by reference to, these documents, copies of which are filed with the SEC as exhibits to the registration statement of which this prospectus is a part, and applicable law. Under "Description of Capital Stock," "we," "us," "our" and "our company" ‎refer to Grayscale Holdings‎.

## **General** 
Upon the consummation of this offering, our authorized capital stock will consist of shares of Class A common stock, par value per share,‎ shares of Class B common ‎stock, par value per share, and shares of preferred stock. Unless our board of ‎directors determines otherwise, we will issue all shares of our capital stock in uncertificated form.

## **Common Stock** 
***Class A Common Stock***

Holders of shares of our Class A common stock are entitled to one vote for each share held of ‎record on all matters on which stockholders are entitled to vote generally, including the election or ‎removal of directors. The holders of our Class A common stock do not have cumulative voting rights ‎in the election of directors.‎

Holders of shares of our Class A common stock are entitled to receive dividends when and if ‎declared by our board of directors out of funds legally available therefor, subject to any statutory ‎or contractual restrictions on the payment of dividends and to any restrictions on the payment of ‎dividends imposed by the terms of any outstanding preferred stock.‎

Upon our liquidation, dissolution or winding up and after payment in full of all amounts required to ‎be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the ‎holders of shares of our Class A common stock will be entitled to receive pro rata our remaining ‎assets available for distribution.‎

All shares of our Class A common stock that will be outstanding at the time of the completion of ‎the offering will be fully paid and non-assessable. The Class A common stock will not be subject to ‎further calls or assessments by us. The rights powers and privileges of our Class A common stock ‎will be subject to those of the holders of any shares of our preferred stock or any other series or ‎class of stock we may authorize and issue in the future.‎

***Class B Common Stock***

Holders shares of our Class B common stock are entitled to votes for each share held of record on all matters ‎on which stockholders are entitled to vote generally, including the election or removal of directors. For purposes of calculating the Substantial Ownership ‎Requirement and the Majority Ownership Requirement, shares of Class A common stock and Class B ‎common stock held by any estate, trust, partnership or limited liability company or other similar entity ‎of which any holder of LLC Units is a trustee, partner, member or similar party will be considered held ‎by such holder of LLC Units. If at any time the ratio at which LLC Units are redeemable or ‎exchangeable for shares of our Class A common stock changes from one-for-one as described under ‎‎"Certain Relationships and Related Person Transactions—Amended LLC Agreement," the number of ‎votes to which Class B common stockholders are entitled will be adjusted accordingly. The holders of ‎our Class B common stock do not have cumulative voting rights in the election of directors.‎

Except for transfers to us pursuant to the Amended LLC Agreement or to certain permitted ‎transferees, the holders of LLC Units are not permitted to sell, transfer or otherwise dispose of any ‎LLC Units or shares of Class B common stock. Holders of shares of our Class B common stock will ‎vote together with holders of our Class A common

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

stock as a single class on all matters on which ‎stockholders are entitled to vote generally, except as otherwise required by law.‎

Holders of our Class B common stock do not have any right to receive dividends or to receive ‎a distribution upon a liquidation or winding up of Grayscale Holdings‎.

***Preferred Stock***

No shares of preferred stock will be issued or outstanding immediately after the offering ‎contemplated by this prospectus. Our certificate of incorporation authorizes our board of directors to ‎establish one or more series of preferred stock (including convertible preferred stock). Unless required ‎by law or any stock exchange, the authorized shares of preferred stock will be available for issuance ‎without further action by holders of our common stock. Our board of directors is able to determine, ‎with respect to any series of preferred stock, the powers (including voting powers), preferences and ‎relative, participating, optional or other special rights, and the qualifications, limitations or restrictions ‎thereof, including, without limitation:‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the designation of the series;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the number of shares of the series, which our board of directors may, except where ‎otherwise provided in the preferred stock designation, increase (but not above the total ‎number of authorized shares of the class) or decrease (but not below the number of shares ‎then outstanding);‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎whether dividends, if any, will be cumulative or non-cumulative and the dividend rate of ‎the series;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the dates at which dividends, if any, will be payable;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the redemption rights and price or prices, if any, for shares of the series;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the terms and amounts of any sinking fund provided for the purchase or redemption of ‎shares of the series;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the amounts payable on shares of the series in the event of any voluntary or ‎involuntary liquidation, dissolution or winding-up of the affairs of our company;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎whether the shares of the series will be convertible into shares of any other class or series, ‎or any other security, of our company or any other entity, and, if so, the specification of the ‎other class or series or other security, the conversion price or prices or rate or rates, any ‎rate adjustments, the date or dates as of which the shares will be convertible and all other ‎terms and conditions upon which the conversion may be made;‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•restrictions on the issuance of shares of the same series or of any other class or series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•‎the voting rights, if any, of the holders of the series.‎

We could issue a series of preferred stock that could, depending on the terms of the series, ‎impede or discourage an acquisition attempt or other transaction that some, or a majority, of the ‎holders of our common stock might believe to be in their best interests or in which the holders of ‎our common stock might receive a premium over the market price of the shares of common stock.‎

Additionally, the issuance of preferred stock may adversely affect the holders of our common stock ‎by restricting dividends on the common stock, diluting the voting power of the common stock or ‎subordinating the liquidation rights of the common stock. As a result of these or other factors, the ‎issuance of preferred stock could have an adverse impact on the market price of our common stock.‎

## **Election and Removal of Directors** 
Our board of directors will consist of between three and directors. The exact number of directors will be fixed from time to time by resolution of the board. No director may be removed except for cause, and directors may be removed for cause by an affirmative vote of shares representing a majority of the shares then entitled to vote at an

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

election of directors. Any vacancy occurring on the board of directors and any newly created directorship may be filled only by a majority of the remaining directors in office.

## **Staggered Board** 
Upon the closing of this offering, our board of directors will be divided into three classes serving staggered three-year terms. Class I, Class II and Class III directors will serve until our annual meetings of stockholders in 2026, 2027 and 2028, respectively. At each annual meeting of stockholders, directors will be elected to succeed the class of directors whose terms have expired. This classification of our board of directors could have the effect of increasing the length of time necessary to change the composition of a majority of the board of directors. In general, at least two annual meetings of stockholders will be necessary for stockholders to effect a change in a majority of the members of the board of directors.

## **Limits on Written Consents** 
Our amended and restated certificate of incorporation and our amended and restated bylaws provide that holders of our common stock may act by written consent without a meeting until such time as DCG does not beneficially own % or more of the then outstanding shares of our common stock, at which time holders of our common stock will not be able to act by written consent without a meeting.

## **Stockholder Meetings** 
Our amended and restated certificate of incorporation and our amended and restated bylaws provide that special meetings of our stockholders may be called either (a) by our board of directors acting pursuant to a resolution adopted by a majority of our board directors or (b) by a stockholder with a majority of voting power of our common stock until such time as DCG does not beneficially own % or more of the then outstanding shares of our common stock, at which time special meetings may be called only by our board of directors acting pursuant to a resolution adopted by a majority of our board directors. Our amended and restated certificate of incorporation and our amended and restated bylaws will specifically deny any power of any other person to call a special meeting.

## **Transferability, Redemption and Exchange** 
Upon the completion of this offering, there will be LLC Units ‎outstanding. There are no ‎limitations in the Amended LLC Agreement on the number of ‎LLC Units issuable in the future, and we are not ‎required to own a majority of LLC Units. ‎Under the Amended LLC Agreement, the holders of LLC Units will ‎have the right, from ‎and after the completion of this offering (subject to the terms of the Amended LLC ‎‎Agreement), to require Grayscale Operating, LLC to redeem all or a portion of their ‎LLC Units for, at our ‎election, newly issued shares of Class A common stock on a one-‎for-one basis or a cash payment equal to ‎the volume weighted average market price of ‎one share of our Class A common stock for each LLC Unit ‎redeemed (subject to ‎customary adjustments, including for stock splits, stock dividends and ‎reclassifications) ‎in accordance with the terms of the Amended LLC Agreement. Additionally, in the ‎event of ‎a redemption request by a holder of LLC Units, we may, at our option, effect a ‎direct exchange of cash or ‎Class A common stock for LLC Units in lieu of such a ‎redemption. Shares of Class B common stock will be ‎cancelled on a one-for-one basis if ‎we, following a redemption request of a holder of LLC Units, redeem or ‎exchange LLC ‎Units of such holder of LLC Units pursuant to the terms of the Amended LLC ‎Agreement. ‎See "Certain Relationships and Related Person Transactions—Amended LLC ‎Agreement."‎

Except for transfers to us pursuant to the Amended LLC Agreement or to certain ‎permitted ‎transferees, the holders of LLC Units are not permitted to sell, transfer or ‎otherwise dispose of any LLC ‎Units or shares of Class B common stock.

## **Amendment of Certificate of Incorporation** 
The provisions of our amended and restated certificate of incorporation described under "—Election and Removal of Directors," "—Stockholder Meetings" and "—Limits on Written Consents" may be amended only by the

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

affirmative vote of holders of at least % of the voting power of our outstanding shares of voting stock, voting together as a single class. The affirmative vote of holders of at least a majority of the voting power of our outstanding shares of stock will generally be required to amend other provisions of our amended and restated certificate of incorporation.

## **Amendment of Bylaws** 
Our amended and restated bylaws may generally be altered, amended or repealed, and new bylaws may be adopted, with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the affirmative vote of a majority of directors in any manner not inconsistent with Delaware law or our amended and restated certificate of incorporation, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the affirmative vote of holders of not less than % of the voting power of our outstanding shares of voting stock, voting together as a single class.

## **Other Limitations on Stockholder Actions** 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our amended and restated bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. In order for any matter to be "properly brought" before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information. Generally, to be timely, a stockholder's notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Our amended and restated bylaws also specify requirements as to the form and content of a stockholder's notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In order to submit a nomination for our board of directors, a stockholder must submit any information with respect to the nominee that we would be required to include in a proxy statement, as well as some other information. If a stockholder fails to follow the required procedures, the stockholder's proposal or nominee will be ineligible and will not be voted on by our stockholders.

## **Limitation of Liability of Directors and Officers** 
Our amended and restated certificate of incorporation will provide that no director or officer will be personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director or officer, except as required by applicable law, as in effect from time to time. Currently, Delaware law requires that liability be imposed for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a director's or officer's breach of the director's or officer's duty of loyalty to our company or our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a director's or officer's act or omission not in good faith or which involved intentional misconduct or a knowing violation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a director's unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the DGCL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a director or officer for any transaction from which the director or officer derived an improper personal benefit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an officer in any action by or in the right of our company.

As a result, neither we nor our stockholders have the right, through stockholders' derivative suits on our behalf, to recover monetary damages against a director or officer for breach of fiduciary duty as a director or officer, including breaches resulting from grossly negligent behavior, except in the situations described above.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Our amended and restated bylaws will provide that, to the fullest extent permitted by law, we will indemnify any officer or director of our company against all damages, claims and liabilities arising out of the fact that the person is or was our director or officer, or served any other enterprise at our request as a director or officer, employee, agent or fiduciary. We will reimburse the expenses, including attorneys' fees, incurred by a person indemnified by this provision when we receive an undertaking to repay such amounts if it is ultimately determined that the person is not entitled to be indemnified by us. Amending this provision will not reduce our indemnification obligations relating to actions taken before an amendment.

## **Forum Selection** 
The Court of Chancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of Grayscale, (ii) any action asserting a claim of breach of fiduciary duty owed by any director, officer or other employee of Grayscale to Grayscale or Grayscale's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Delaware law or our amended and restated certificate of incorporation or amended and restated bylaws, or (iv) any action asserting a claim governed by the internal affairs doctrine. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of Grayscale shall be deemed to have notice of and consented to the foregoing forum selection provisions.

## **Delaware Business Combination Statute** 
Section 203 of the DGCL prevents an "interested stockholder," which is defined generally as a person owning 15% or more of a corporation's voting stock, or any affiliate or associate of that person, from engaging in a broad range of "business combinations" with the corporation for three years after becoming an interested stockholder unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the board of directors of the corporation had previously approved either the business combination or the transaction that resulted in the stockholder's becoming an interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•upon completion of the transaction that resulted in the stockholder's becoming an interested stockholder, that person owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, other than statutorily excluded shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•following the transaction in which that person became an interested stockholder, the business combination is approved by the board of directors of the corporation and holders of at least two-thirds of the outstanding voting stock not owned by the interested stockholder.

A Delaware corporation may elect in its certificate of incorporation or bylaws not to be governed by this particular Delaware law. We have expressly elected not to be governed by the ‎‎"business combination" ‎provisions of Section 203 of the DGCL until such time as DCG does not beneficially own % or more of the then outstanding shares of our common stock, at which time we will automatically become subject to Section 203 of the DGCL. ‎

## **Anti-Takeover Effects of Some Provisions** 
Some provisions of our amended and restated certificate of incorporation and amended and restated bylaws could make the following more difficult:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•acquisition of control of us by means of a proxy contest or otherwise, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•removal of our incumbent officers and directors.

These provisions, as well as our ability to issue preferred stock, are designed to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection give us the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us, and that the benefits of this increased protection outweigh the disadvantages of discouraging those proposals, because negotiation of those proposals could result in an improvement of their terms.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **Listing** 
We intend to apply to list the common stock on the under the symbol " ."

## **Transfer Agent and Registrar** 
The transfer agent and registrar for the common stock is .

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Material U.S. Federal Tax Considerations for<br>Non-U.S. Holders of Common Stock** 
The following are the material U.S. federal income and estate tax consequences of the ownership and disposition of our Class A common stock acquired in this offering by a "Non-U.S. Holder" that does not own, and has not owned, actually or constructively, more than 5% of our Class A common stock. You are a Non-U.S. Holder for U.S. federal income tax purposes if you are a beneficial owner of our Class A common stock and are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a nonresident alien individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a foreign corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a foreign estate or trust.

You are not a Non-U.S. Holder if you are a nonresident alien individual present in the United States for 183 days or more in the taxable year of disposition, a former citizen or former resident of the United States or a corporation that has expatriated from the United States and is treated as a U.S. corporation, in each case, for U.S. federal income tax purposes. If you are such a person, you should consult your tax advisor regarding the U.S. federal income tax consequences of the ownership and disposition of our Class A common stock.

If you are an entity or arrangement treated as a partnership for U.S. federal income tax purposes, the U.S. federal income tax treatment of a partner will generally depend on the status of the partner and your activities. Partners and beneficial owners in partnerships or other pass-through entities should consult their own tax advisors as to the particular U.S. federal income and estate tax consequences applicable to them from the ownership and disposition of our Class A common stock.

This discussion is based on the Internal Revenue Code of 1986, as amended to the date hereof (the "Code"), administrative pronouncements, judicial decisions and final, temporary and proposed Treasury regulations, changes to any of which subsequent to the date of this prospectus may affect the tax consequences described herein, possibly with retroactive effect. This discussion does not describe all of the tax consequences that may be relevant to you in light of your particular circumstances, including alternative minimum tax and Medicare contribution tax consequences and does not address any aspect of state, local or non-U.S. taxation, or any taxes other than income and estate taxes. In addition, this summary does not describe the U.S. federal income tax consequences applicable to you if you are subject to special treatment under U.S. federal income tax laws, including if you are a U.S. expatriate, a financial institution, an insurance company, a tax-exempt organization, a trader, broker or dealer in securities, a "controlled foreign corporation," a "passive foreign investment company," a person who acquired shares of our Class A common stock as compensation or otherwise in connection with the performance of services, or a person who has acquired shares of our Class A common stock as part of a straddle, hedge, conversion transaction or other integrated investment. You should consult your tax advisor with regard to the application of the U.S. federal tax laws to your particular situation, as well as any tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.

We have not sought and do not expect to seek any rulings from the IRS regarding the matters discussed below. There can be no assurance that the IRS will not take positions concerning the tax consequences of the ownership or disposition of shares of our Class A common stock that differ from those discussed below.

## **Dividends** 
In the event that we do make distributions of cash or other property in respect of our Class A common stock, other than certain pro rata distributions of our Class A ‎common stock, those distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. To the extent those distributions exceed our current and accumulated earnings and profits, they will constitute a return of capital, which will first reduce your basis in our Class A common stock, but not below zero, and then will be treated as gain from the sale of our Class A common stock, as described below under "—Gain on Disposition of Our Class A Common Stock."

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

Dividends paid to you generally will be subject to withholding tax at a 30% rate or a reduced rate specified by an applicable income tax treaty. In order to obtain a reduced rate of withholding, you will be required to provide a properly executed applicable IRS Form W-8 certifying your entitlement to benefits under a treaty. If you do not timely furnish the required documentation, but you qualify for a lower treaty rate, you may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. You should consult your tax advisor regarding your entitlement to benefits under any applicable income tax treaty.

If dividends paid to you are effectively connected with your conduct of a trade or business in the United States (and, if required by an applicable income tax treaty, are attributable to a permanent establishment or fixed base maintained by you in the United States), you will generally be taxed on the dividends in the same manner as a U.S. person. In this case, you will be exempt from the withholding tax discussed in the preceding paragraph, although you will be required to provide a properly executed IRS Form W-8ECI in order to claim an exemption from withholding. You should consult your tax advisor with respect to other U.S. tax consequences of the ownership and disposition of our Class A common stock, including the possible imposition of a branch profits tax at a rate of 30% (or a lower treaty rate) if you are a corporation.

## **Gain on Disposition of Our Class A Common Stock** 
Subject to the discussion below under "—Information Reporting and Backup Withholding" you generally will not be subject to U.S. federal income or withholding tax on gain realized on a sale or other taxable disposition of our Class A common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the gain is effectively connected with your conduct of a trade or business in the United States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment or fixed base maintained by you in the United States), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•we are or have been a "United States real property holding corporation" (a "USRPHC") as described below, at any time within the five-year period preceding the disposition or your holding period, whichever period is shorter, and our Class A common stock has ceased to be regularly traded on an established securities market prior to the beginning of the calendar year in which the sale or disposition occurs.

We will be a USRPHC at any time that the fair market value of our "United States real property interests," as defined in the Code and applicable Treasury regulations, equals or exceeds 50% of the aggregate fair market value of our worldwide real property interests and our other assets used or held for use in a trade or business (all as determined for U.S. federal income tax purposes). We believe that we are not, and do not anticipate becoming in the foreseeable future, a USRPHC. If we are or were to become a USRPHC at any point during the five-year period preceding your sale or other disposition of our common stock (or during your holding period, if shorter) and our common stock is not regularly traded on an established securities market during the calendar year in which your sale or other disposition of our common stock occurs, you would be subject to tax on the net gain from the sale or other disposition of our common stock (including a distribution treated as a sale of our common stock, as discussed above) under the regular graduated U.S. federal income tax rates applicable to U.S. persons and you could be subject to withholding at a 15% rate on the amount realized on such sale or disposition. You should consult your tax advisor regarding the particular U.S. federal income tax consequences of owning and disposing of our common stock.

If you recognize gain on a sale or other disposition of our Class A common stock that is effectively connected with your conduct of a trade or business in the United States (and if required by an applicable income tax treaty, is attributable to a permanent establishment or fixed base maintained by you in the United States), you will generally be taxed on such gain in the same manner as a U.S. person. You should consult your tax advisor with respect to other U.S. tax consequences of the ownership and disposition of our Class A common stock, including the possible imposition of a branch profits tax at a rate of 30% (or a lower treaty rate) if you are a corporation.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

## **Information Reporting and Backup Withholding** 
Information returns are required to be filed with the IRS in connection with payments of distributions on our Class A common stock, regardless of whether such distributions constitute dividends or whether any tax was actually withheld. Unless you comply with certification procedures to establish that you are not a U.S. person, information returns may also be filed with the IRS in connection with the proceeds from a sale or other disposition of our Class A common stock. You may be subject to backup withholding on payments on our Class A common stock or on the proceeds from a sale or other disposition of our Class A common stock unless you comply with certification procedures to establish that you are not a U.S. person or otherwise establish an exemption. Your provision of a properly executed applicable IRS Form W-8 certifying your non-U.S. status will permit you to avoid backup withholding. Amounts withheld under the backup withholding rules are not additional taxes and may be refunded or credited against your U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

## **FATCA** 
Provisions of the Code commonly referred to as "FATCA" require withholding of 30% on payments of dividends on our Class A common stock to "foreign financial institutions" (which is broadly defined for this purpose and in general includes investment vehicles) and certain other non-U.S. entities unless various U.S. information reporting and due diligence requirements (generally relating to ownership by U.S. persons of interests in or accounts with those entities) have been satisfied, or an exemption applies. Under proposed regulations promulgated by the Treasury Department on December 13, 2018, which state that taxpayers may rely on the proposed regulation until final regulations are issued, this withholding tax will not apply to the gross proceeds from the sale or other disposition of our Class A common stock. An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. If FATCA withholding is imposed, a beneficial owner that is not a foreign financial institution generally may obtain a refund of any amounts withheld by filing a U.S. federal income tax return (which may entail significant administrative burden). You should consult your tax advisor regarding the effects of FATCA on your investment in our Class A common stock.

## **Federal Estate Tax** 
Individual Non-U.S. Holders and entities the property of which is potentially includible in such an individual's gross estate for U.S. federal estate tax purposes (for example, a trust funded by such an individual and with respect to which the individual has retained certain interests or powers) should note that, absent an applicable treaty exemption, our Class A common stock will be treated as U.S.-situs property subject to U.S. federal estate tax.

THE SUMMARY OF MATERIAL U.S. FEDERAL INCOME AND ESTATE TAX CONSIDERATIONS ABOVE IS INCLUDED FOR GENERAL INFORMATION PURPOSES ONLY. YOU ARE URGED TO CONSULT YOUR OWN TAX ADVISOR TO DETERMINE THE U.S. FEDERAL, STATE AND LOCAL AND NON-U.S. INCOME, ESTATE AND OTHER TAX CONSIDERATIONS OF OWNING AND DISPOSING OF OUR CLASS A COMMON STOCK.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Shares Eligible fo r Future Sale** 
Prior to this offering, there has been no public market for our Class A common stock. Future sales of substantial amounts of our Class A common stock in the public market could adversely affect market prices prevailing from time to time. Furthermore, because only a limited number of shares of Class A common stock will be available for sale shortly after this offering due to existing contractual and legal restrictions on resale as described below, there may be sales of substantial amounts of our Class A common stock in the public market after the restrictions lapse. This may adversely affect the prevailing market price and our ability to raise equity capital in the future.

Upon completion of this offering, we will have shares of Class A common stock outstanding (or shares of Class A common stock assuming the exercise of the underwriters' option to purchase additional shares of Class A common stock) as of , 2025. Of these shares, the shares, or shares if the underwriters exercise their option to purchase additional shares of Class A common stock in full, sold in this offering will be freely transferable without restriction or registration under the Securities Act, except for any shares purchased by one of our existing "affiliates," as that term is defined in Rule 144 under the Securities Act.

In addition, upon the consummation of the offering, the Pre-IPO LLC Members will own an ‎aggregate of LLC Units and all of the shares of our Class B common stock. The ‎Pre-IPO LLC Members, from time to time following the offering, may require Grayscale Operating, LLC ‎to redeem or exchange all or a portion of their LLC Units for newly issued shares of Class A ‎common stock on a one-for-one basis. Shares of our Class B common stock will be cancelled on a one-for-one ‎basis if we, following a redemption request of a Pre-IPO LLC Member, redeem or exchange LLC ‎Units of such Pre-IPO LLC Member pursuant to the terms of the Amended LLC Agreement. Shares ‎of our Class A common stock issuable to the Pre-IPO LLC Members upon a redemption or exchange ‎of LLC Units would be considered "restricted securities," as that term is defined under Rule 144 and ‎would also be subject to the lock-up agreements described below under "Lock-up Agreements."‎

Restricted securities may be sold in the public market only if registered or if they qualify for an exemption from registration under Rules 144 or 701 of the Securities Act, each of which is summarized below. As a result of the contractual -day lock-up period described below under "Lock-up Agreements" and the provisions of Rules 144 and 701, these shares will be available for sale in the public market as follows:

---

| | |
|:---|:---|
| **Number of Shares** | **Date** |
|  | On the date of this prospectus. |
|  | After days from the date of this prospectus (subject, in some cases, to volume, manner of sale and other limitations). |

---

## **Rule 144** 
In general, a person who has beneficially owned shares of our Class A common stock that are restricted securities for at least six months would be entitled to sell such securities, provided that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the 90 days preceding, a sale and (ii) we are subject to, and in compliance with certain of, the Exchange Act periodic reporting requirements for at least 90 days before the sale, but this clause (ii) will not apply to a sale if such person has beneficially owned such shares for at least one year. Persons who have beneficially owned shares of our Class A common stock that are restricted securities for at least six months but who are our affiliates at the time of, or any time during the 90 days preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of either of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•1% of the number of shares of our Class A common stock then outstanding, which will equal approximately shares immediately after this offering, assuming no exercise of the underwriters' option to purchase additional shares of Class A common stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the average weekly trading volume of our Class A common stock on the during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale;

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

provided, in each case, that we are subject to, and in compliance with certain of, the Exchange Act periodic reporting requirements for at least 90 days before the sale. Such sales both by affiliates and by non-affiliates must also comply with the manner of sale, current public information and notice provisions of Rule 144 to the extent applicable.

## **Rule 701** 
In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who purchases shares from us in connection with a compensatory stock or option plan or other written agreement before the effective date of this offering is entitled to resell such shares 90 days after the effective date of this offering in reliance on Rule 144, without having to comply with the holding period requirements or other restrictions contained in Rule 701.

The SEC has indicated that Rule 701 will apply to typical stock options granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the shares acquired upon exercise of such options, including exercises after the date of this prospectus. Securities issued in reliance on Rule 701 are restricted securities and, subject to the contractual restrictions described above, beginning 90 days after the date of this prospectus, may be sold by persons other than "affiliates," as defined in Rule 144, subject only to the manner of sale provisions of Rule 144 and by "affiliates" under Rule 144 without compliance with its one-year minimum holding period requirement.

## **Form S-8 Registration Statements** 
We intend to file one or more registration statements on Form S-8 under the Securities Act with the SEC to register the offer and sale of shares of our Class A common stock that are issuable under the Omnibus Incentive Plan. These registration statements will become effective immediately on filing. Shares covered by these registration statements will then be eligible for sale in the public markets, subject to vesting restrictions, any applicable lock-up agreements described below and Rule 144 limitations applicable to affiliates.

## **Lock-up Agreements** 
Our executive officers and directors and DCG, who together hold all of our outstanding stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock, have agreed that, for a period of days from the date of this prospectus, they will not, without the prior written consent of Morgan Stanley & Co. LLC on behalf of the underwriters, dispose of or hedge any shares of our common stock or any securities convertible into or exchangeable for our common stock (including LLC Units) subject to certain exceptions (including dispositions in connection with the IPO Reorganization). These agreements are described in the section titled "Underwriters." Morgan Stanley & Co. LLC may release any of the securities subject to these lock-up agreements at any time, subject to applicable notice requirements.‎

Immediately following the consummation of this offering, stockholders subject to lock-up ‎agreements will hold shares of our Class A common stock (assuming the Pre-IPO ‎LLC Members redeem or exchange all their LLC Units for shares of our Class A common ‎stock), representing approximately % of our then-outstanding shares of Class A common ‎stock ‎(or shares of Class A common stock, representing approximately % of our then-outstanding ‎shares of Class A common stock if the underwriters exercise their option to purchase additional ‎shares of Class A common stock in full and giving effect to the use of the net proceeds therefrom).‎

We have agreed, subject to certain exceptions, not to issue, sell or otherwise dispose of any ‎shares of our Class A common stock or any securities convertible into or exchangeable for our Class ‎A common stock (including LLC Units) during the -day period following the date of this prospectus.‎

In addition to the restrictions contained in the lock-up agreements described above, equity awards under our Existing Incentive Plan are subject to a market stand-off provision imposing restrictions on the ability of holders of such awards to offer, sell or any equity securities acquired pursuant to such awards for a period of 180 days following the date of this prospectus.

## **Registration Rights** 
Our Registration Rights Agreement grants registration rights to the Pre-IPO LLC Members. ‎See "Certain Relationships and Related Person Transactions—Registration Rights Agreement."‎

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Underwriters**

Under the terms and subject to the conditions in an underwriting agreement dated the date of this prospectus, the underwriters named below, for whom Morgan Stanley & Co. LLC and are acting as representatives, have severally agreed to purchase, and we have agreed to sell to them, severally, the number of shares of Class A common stock indicated below:

---

| | |
|:---|:---|
| **Name** | **Number<br>of Shares** |
| Morgan Stanley & Co. LLC |  |
| Total: |  |

---

The underwriters and the representatives are collectively referred to as the "underwriters" and the "representatives," respectively. The underwriters are offering the shares of Class A common stock subject to their acceptance of the shares from us and subject to prior sale. The underwriting agreement provides that the obligations of the several underwriters to pay for and accept delivery of the shares of Class A common stock offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated to take and pay for all of the shares of Class A common stock offered by this prospectus if any such shares are taken. However, the underwriters are not required to take or pay for the shares covered by the underwriters' over-allotment option described below.

The underwriters initially propose to offer part of the shares of Class A common stock directly to the public at the offering price listed on the cover page of this prospectus and part to certain dealers at a price that represents a concession not in excess of $ per share under the public offering price. After the initial offering of the shares of Class A common stock, the offering price and other selling terms may from time to time be varied by the representatives.

We have granted to the underwriters an option, exercisable for 30 days from the date of this prospectus, to purchase up to additional shares of Class A common stock at the public offering price listed on the cover page of this prospectus, less underwriting discounts and commissions. The underwriters may exercise this option solely for the purpose of covering over-allotments, if any, made in connection with the offering of the shares of Class A common stock offered by this prospectus. To the extent the option is exercised, each underwriter will become obligated, subject to certain conditions, to purchase about the same percentage of the additional shares of Class A common stock as the number listed next to the underwriter's name in the preceding table bears to the total number of shares of Class A common stock listed next to the names of all underwriters in the preceding table.

The following table shows the per share and total public offering price, underwriting discounts and commissions, and proceeds before expenses to us. These amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase up to an additional shares of Class A common stock.

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Total** | **Total** |
|  | **Per Share** | **No Exercise** | **Full Exercise** |
| Public offering price | $— | $— | $— |
| Underwriting discounts and commissions to be paid by: |  |  |  |
| Us | $— | $— | $— |
| Proceeds, before expenses, to us | $— | $— | $— |

---

The estimated offering expenses payable by us, exclusive of the underwriting discounts and commissions, are approximately $. We have agreed to reimburse the underwriters for expenses relating to clearance of this offering with FINRA up to $.

We intend to apply to have our Class A common stock listed on under the trading symbol " ."

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

We and all of our directors and executive officers and DCG, who together hold all of our outstanding stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock, have agreed that, without the prior written consent of Morgan Stanley & Co. LLC on behalf of the underwriters, we and they will not, and will not publicly disclose an intention to, during the period ending days after the date of this prospectus (the "restricted period"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of Class A common stock or any securities convertible into or exercisable or exchangeable for shares of Class A common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•file any registration statement with the SEC relating to the offering of any shares of Class A common stock or any securities convertible into or exercisable or exchangeable for Class A common stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Class A common stock,

whether any such transaction described above is to be settled by delivery of Class A common stock or such other securities, in cash or otherwise. In addition, we and each such person agrees that, without the prior written consent of Morgan Stanley & Co. LLC on behalf of the underwriters, we or such other person will not, during the restricted period, make any demand for, or exercise any right with respect to, the registration of any shares of Class A common stock or any security convertible into or exercisable or exchangeable for Class A common stock.

Morgan Stanley & Co. LLC may release the Class A common stock and other securities subject to the lock-up agreements described above in whole or in part at any time.

In order to facilitate the offering of the Class A common stock, the underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of the Class A common stock. Specifically, the underwriters may sell more shares than they are obligated to purchase under the underwriting agreement, creating a short position. A short sale is covered if the short position is no greater than the number of shares available for purchase by the underwriters under the over-allotment option. The underwriters can close out a covered short sale by exercising the over-allotment option or purchasing shares in the open market. In determining the source of shares to close out a covered short sale, the underwriters will consider, among other things, the open market price of shares compared to the price available under the over-allotment option. The underwriters may also sell shares in excess of the over-allotment option, creating a naked short position. The underwriters must close out any naked short position by purchasing shares in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the Class A common stock in the open market after pricing that could adversely affect investors who purchase in this offering. As an additional means of facilitating this offering, the underwriters may bid for, and purchase, shares of Class A common stock in the open market to stabilize the price of the Class A common stock. These activities may raise or maintain the market price of the Class A common stock above independent market levels or prevent or retard a decline in the market price of the Class A common stock. The underwriters are not required to engage in these activities and may end any of these activities at any time.

We and the underwriters have agreed to indemnify each other against certain liabilities, including liabilities under the Securities Act.

A prospectus in electronic format may be made available on websites maintained by one or more underwriters, or selling group members, if any, participating in this offering. The representatives may agree to allocate a number of shares of Class A common stock to underwriters for sale to their online brokerage account holders. Internet distributions will be allocated by the representatives to underwriters that may make Internet distributions on the same basis as other allocations.

The underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. Certain of the underwriters and their respective affiliates have, from time to time, performed, and may in the future perform, various

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

financial advisory and investment banking services for us, for which they received or will receive customary fees and expenses.

In addition, in the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve our securities and instruments. The underwriters and their respective affiliates may also make investment recommendations or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long or short positions in such securities and instruments.

## **Pricing of the Offering** 
Prior to this offering, there has been no public market for our Class A common stock. The initial public offering price was determined by negotiations between us and the representatives. Among the factors considered in determining the initial public offering price were our future prospects and those of our industry in general, our sales, earnings and certain other financial and operating information in recent periods, and the price-earnings ratios, price-sales ratios, market prices of securities, and certain financial and operating information of companies engaged in activities similar to ours.

## **Selling Restrictions** 
***European Economic Area***

In relation to each Member State of the European Economic Area (each, a "Relevant State"), no shares of Class A common stock have been offered or will be offered pursuant to the offering to the public in that Relevant State prior to the publication of a prospectus in relation to the shares of Class A common stock which has been approved by the competent authority in that Relevant State or, where appropriate, approved in another Relevant State and notified to the competent authority in that Relevant State, all in accordance with the EU Prospectus Regulation (as defined below), except that offers of shares of Class A common stock may be made to the public in that Relevant State at any time under the following exemptions under the EU Prospectus Regulation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)to any legal entity which is a qualified investor as defined under Article 2 of the EU Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the EU Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)in any other circumstances falling within Article 1(4) of the EU Prospectus Regulation;

provided that no such offer of shares of Class A common stock shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the EU Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the EU Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to any shares of Class A common stock in any Relevant State means the communication in any form and by any means of sufficient information on the terms of the offer and any shares of Class A common stock to be offered so as to enable an investor to decide to purchase or subscribe for any shares of Class A common stock, and the expression "EU Prospectus Regulation" means Regulation (EU) 2017/1129 (as amended).

Each person in a Relevant State who receives any communication in respect of, or who acquires any shares under, the offering contemplated hereby will be deemed to have represented, warranted and agreed to and with each of the underwriters and their affiliates and us that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)it is a qualified investor within the meaning of the EU Prospectus Regulation; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)in the case of any shares of Class A common stock acquired by it as a financial intermediary, as that term is used in Article 5 of the EU Prospectus Regulation, (i) the shares acquired by it in this offering have not been acquired on a non-discretionary basis on behalf of, nor have they been acquired with a view to their offer or resale to, persons in any Relevant State other than qualified investors, as that term is defined in the EU Prospectus Regulation, or have been acquired in other circumstances falling within the points (a) to (d) of Article 1(4) of the EU Prospectus Regulation and the prior consent of the representatives has been given to the offer or resale; or (ii) where the shares have been acquired by it on behalf of persons in any Relevant Member State other than qualified investors, the offer of those shares to it is not treated under the Prospectus Regulation as having been made to such persons.

We, the underwriters and their affiliates will rely upon the truth and accuracy of the foregoing representations, warranties and agreements. Notwithstanding the above, a person who is not a "qualified investor" and who has notified the underwriters of such fact in writing may, with the prior consent of the underwriters, be permitted to acquire ordinary shares in the offer.

***United Kingdom***

This prospectus and any other material in relation to the shares described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this prospectus relates is available only to, and will be engaged in only with persons who are (i) persons having professional experience in matters relating to investments who fall within the definition of investment professionals in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, or the FPO; or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the FPO; (iii) outside the United Kingdom; or (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000, or the FSMA) in connection with the issue or sale of any shares may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "Relevant Persons"). The shares are only available in the United Kingdom to, and any invitation, offer or agreement to purchase or otherwise acquire the shares will be engaged in only with, the Relevant Persons. This prospectus and its contents are confidential and should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person in the United Kingdom. Any person in the United Kingdom that is not a Relevant Person should not act or rely on this prospectus or any of its contents.

No shares of Class A common stock have been offered or will be offered pursuant to the offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the shares of Class A common stock which has been approved by the Financial Conduct Authority, except that offers of shares of Class A common stock may be made to the public in the United Kingdom at any time under the following exemptions under the UK Prospectus Regulation (as defined below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)to any legal entity which is a "qualified investor" as defined under Article 2 of the UK Prospectus Regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)to fewer than 150 natural or legal persons (other than qualified investors as defined under Article 2 of the UK Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000 (the "FSMA"),

provided that no such offer of shares of Class A common stock shall require us or any representative to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

For the purposes of this provision, the expression an "offer to the public" in relation to the shares of Class A common stock in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares of Class A common stock to be offered so as to enable an investor to decide to purchase or subscribe for any shares of Class A common stock, and the expression "UK Prospectus

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Regulation" means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

Each person in the United Kingdom who acquires any Class A common stock in the offering or to whom any offer is made will be deemed to have represented, acknowledged, and agreed to and with us, the underwriters, and their affiliates that it meets the criteria outlined in this section.

***Canada***

The shares of Class A common stock may be sold in Canada only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the shares of Class A common stock must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

***Australia***

No placement document, prospectus, product disclosure statement or other disclosure document has been lodged with the Australian Securities and Investments Commission (the "ASIC") in relation to this offering. This offering document does not constitute a prospectus, product disclosure statement or other disclosure document under the Corporations Act 2001 ("the Corporations Act"), has not been, and will not be, lodged with the ASIC as a disclosure document for the purposes of the Corporations Act and does not purport to include the information required for a prospectus, product disclosure statement or other disclosure document under the Corporations Act.

Any offer in Australia of the shares of Class A common stock may only be made to persons ("Exempt Investors") who are "sophisticated investors" (within the meaning of section 708(8) of the Corporations Act), "professional investors" (within the meaning of section 708(11) of the Corporations Act), or otherwise pursuant to one or more exemptions contained in section 708 of the Corporations Act so that it is lawful to offer the shares of Class A common stock without disclosure to investors under Chapter 6D of the Corporations Act.

The shares of Class A common stock applied for by Exempt Investors in Australia must not be offered for sale in Australia in the period of twelve months after the date of allotment under the offering, except in circumstances where disclosure to investors under Chapter 6D of the Corporations Act would not be required pursuant to an exemption under section 708 of the Corporations Act or otherwise or where the offer is pursuant to a disclosure document which complies with Chapter 6D of the Corporations Act. Any person acquiring shares of Class A common stock must observe such Australian on-sale restrictions.

This offering document contains general information only and does not take account of the investment objectives, financial situation or particular needs of any particular person. It does not contain any securities recommendations or financial product advice. Before making an investment decision, investors need to consider whether the information in this offering document is appropriate to their needs, objectives and circumstances, and, if necessary, seek expert advice on those matters.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

***Switzerland***

The shares of Class A common stock may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange (the "SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document does not constitute a prospectus within the meaning of, and has been prepared without regard to, the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the shares of Class A common stock or the offering may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, us, or our shares of Class A common stock has been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of the shares of Class A common stock will not be supervised by, the Swiss Financial Market Supervisory Authority, and the offer of the shares of Class A common stock has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes (the "CISA"). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of shares of Class A common stock.

***Japan***

No registration pursuant to Article 4, paragraph 1 of the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended, the "FIEA") has been made or will be made with respect to the solicitation of the application for the acquisition of the shares of Class A common stock.

Accordingly, the shares of Class A common stock have not been, directly or indirectly, offered or sold and will not be, directly or indirectly, offered or sold in Japan or to, or for the benefit of, any "resident" of Japan (which term as used herein means any person resident in Japan or any corporation or other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the FIEA and the other applicable laws, regulations and ministerial guidelines of Japan.

***Dubai International Financial Centre***

This prospectus relates to an Exempt Offer in accordance with the Offered Securities Rules of the Dubai Financial Services Authority (the "DFSA"). This prospectus is intended for distribution only to persons of a type specified in the Offered Securities Rules of the DFSA. It must not be delivered to, or relied on by, any other person. The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The DFSA has not approved this offering document nor taken steps to verify the information set forth herein and has no responsibility for the offering document. The shares of Class A common stock to which this offering document relate may be illiquid or subject to restrictions on their resale. Prospective purchasers of the shares of Class A common stock offered should conduct their own due diligence on the shares of Class A common stock. If you do not understand the contents of this offering document you should consult an authorized financial advisor.

***Hong Kong***

The shares of Class A common stock may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong), (ii) to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and any rules made thereunder or (iii) in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong), and no advertisement, invitation, or document relating to shares of Class A common stock may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the laws of Hong Kong) other than with respect to shares which are or are intended to be

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

disposed of only to persons outside Hong Kong or only to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any rules made thereunder.

***Singapore***

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, each underwriter has represented and agreed that it has not offered or sold any shares of our Class A common stock or caused our Class A common stock to be made the subject of an invitation for subscription or purchase and will not offer or sell any shares of our Class A common stock or cause our Class A common stock to be made the subject of an invitation for subscription or purchase, and has not circulated or distributed, nor will it circulate or distribute, this prospectus or any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of shares of our Class A common stock, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time (the "SFA")) pursuant to Section 274 of the SFA, (ii) to a relevant person, or any person pursuant to Section 275(1A), and in accordance with the conditions, specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

Where shares of our Class A common stock are subscribed or purchased under Section 275 of the SFA by a relevant person which is: (i) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or (ii) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, shares, debentures and units of shares and debentures of that corporation or the beneficiaries' rights and interest in that trust will not be transferable for six months after that corporation or that trust has acquired shares of our Class A common stock under Section 275 except: (i) to an institutional investor under Section 274 of the SFA or to a relevant person, or any person pursuant to Section 275(1A), and in accordance with the conditions, specified in Section 275 of the SFA; (ii) where no consideration is given for the transfer; or (iii) by operation of law.

***Brazil***

The offer and sale of the securities have not been and will not be registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários, or "CVM") and, therefore, will not be carried out by any means that would constitute a public offering in Brazil under CVM Resolution No 160, dated 13 July 2022, as amended ("CVM Resolution 160") or unauthorized distribution under Brazilian laws and regulations. The securities may only be offered to Brazilian professional investors (as defined by applicable CVM regulation), who may only acquire the securities through a non-Brazilian account, with settlement outside Brazil in non-Brazilian currency. The trading of these securities on regulated securities markets in Brazil is prohibited.

***Saudi Arabia***

This document may not be distributed in the Kingdom of Saudi Arabia except to such persons as are permitted under the Offers of Securities Regulations as issued by the board of the Saudi Arabian Capital Market Authority (the "CMA"), pursuant to resolution number 2-11-2004 dated October 4, 2004, as amended by resolution number 1-28-2008, as amended. The CMA does not make any representation as to the accuracy or completeness of this document and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this document. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If you do not understand the contents of this document, you should consult an authorized financial adviser.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **Leg al Matters** 
The validity of the issuance of the shares of Class A common stock offered hereby will be passed upon for Grayscale Holdings by Davis Polk & Wardwell LLP. Certain legal ‎matters in connection with this offering will be passed upon for the underwriters by Skadden, Arps, Slate, Meagher & Flom LLP.

# **Exp erts** 
The financial statement of GSO Intermediate Holdings I Corporation as of June 3, 2025 has been included herein in reliance upon the report of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

The consolidated financial statements of Grayscale Operating, LLC and subsidiaries as of December 31, 2024 and 2023, and for each of the years in the two-year period ended December 31, 2024, have been included herein in reliance upon the report of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

# **Where You Can Fi nd More Information** 
We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the Class A common stock offered hereby. This prospectus does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. For further information with respect to the Company and its Class A common stock, reference is made to the registration statement and the exhibits and any schedules filed therewith. Statements contained in this prospectus as to the contents of any contract or other document referred to are not necessarily complete and in each instance, if such contract or document is filed as an exhibit, reference is made to the copy of such contract or other document filed as an exhibit to the registration statement, each statement being qualified in all respects by such reference. The SEC maintains an Internet site at www.sec.gov that contains reports, proxy and information statements we have filed electronically with the SEC.

As a result of this offering, we will be required to file periodic reports and other information with the SEC. We also maintain a website at www.grayscale.com. Our website and the information contained therein or connected thereto shall not be deemed to be incorporated into this prospectus or the registration statement of which it forms a part.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Index to Consolidated Financial Statements**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**GSO Intermediate Holdings I Corporation** | &nbsp;&nbsp;<u>Page</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Report of Independent Registered Certified Public Accounting Firm</u>](#auditopinion1) | &nbsp;&nbsp;F-2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statement of Financial Condition as of June 3, 2025</u>](#statement_of_financial_condition) | &nbsp;&nbsp;F-3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Notes to Consolidated Financial Statement</u>](#notes_to_the_financial_statement) | &nbsp;&nbsp;F-4 |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Grayscale Operating, LLC** | &nbsp;&nbsp;<u>Page</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Interim Consolidated Financial Statements (unaudited)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Financial Condition as of June 30, 2025 and December 31, 2024 (unaudited)</u>](#consolida_state_of_finan_condi_unaudited) | &nbsp;&nbsp;F-5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Operations for the Six Months Ended June 30, 2025 and 2024 (unaudited)</u>](#consolidated_statem_of_operati_unaudited) | &nbsp;&nbsp;F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Changes in Member's Equity for the Six Months Ended June 30, 2025 and 2024 (unaudited)</u>](#cons_state_of_chang_in_memb_equitys_unau) | &nbsp;&nbsp;F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (unaudited)</u>](#consol_stateme_of_cash_flows_unaudited) | &nbsp;&nbsp;F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Notes to Consolidated Financial Statements (unaudited)</u>](#unauditednotes) | &nbsp;&nbsp;F-9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Consolidated Financial Statements** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Report of Independent Registered Certified Public Accounting Firm</u>](#auditopinion2) | &nbsp;&nbsp;F-30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Financial Condition as of December 31, 2024 and 2023</u>](#consolidated_statements_of_financial_con) | &nbsp;&nbsp;F-31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Operations for Years Ended December 31, 2024 and 2023</u>](#consolidated_statements_of_operations) | &nbsp;&nbsp;F-32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Changes in Member's Equity for Years Ended December 31, 2024 and 2023</u>](#statements_of_changes_in_members_equity) | &nbsp;&nbsp;F-33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Cash Flows for Years Ended December 31, 2024 and 2023</u>](#consolidated_statements_of_cash_flows) | &nbsp;&nbsp;F-34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[<u>Notes to Consolidated Financial Statements</u>](#notes) | &nbsp;&nbsp;F-35 |

---

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Board of Directors and Shareholder

GSO Intermediate Holdings I Corporation:

*Opinion on the Financial Statements* 

We have audited the accompanying statement of financial condition of GSO Intermediate Holdings I Corporation (the Company) as of June 3, 2025, and the related notes (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 3, 2025, in conformity with U.S. generally accepted accounting principles.

*Basis for Opinion* 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Company's auditor since 2025.

New York, New York

June 27, 2025

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GSO INTERMEDIATE HOLDINGS I CORPORATION**

**STATEMENT OF FINANCIAL CONDITION**

---

| | |
|:---|:---|
|  | **June 3, 2025** |
| **Assets:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commitments and contingencies |  |
| **Stockholder's equity:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value $0.01 per share, 1,000 shares authorized, 100 shares issued and<br> outstanding | $1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholder's equity | $1 |

---

*See accompanying notes to the financial statement.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GSO INTERMEDIATE HOLDINGS I CORPORATION**

**NOTES TO THE FINANCIAL STATEMENT**

**1.** **Organization**

GSO Intermediate Holdings I Corporation (the "Company") was incorporated in the state of Delaware on May 2, 2025. The Company's fiscal year end is December 31. The Company was formed for the purpose of completing an initial public offering of its common stock and related transactions in order to carry on the business of Grayscale Operating, LLC as a publicly-traded entity. The Company will become a holding corporation and its sole assets are expected to be an equity interest in Grayscale Operating, LLC. The Company will be the managing member of Grayscale Operating, LLC and will operate and control all of the businesses and affairs of Grayscale Operating, LLC and, through Grayscale Operating, LLC and its subsidiaries, continue to conduct the business now conducted by these entities.

**2.** **Summary of Significant Accounting Policies** 

***Basis of presentation***

The accompanying statement of financial condition is prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the financial statements. Actual future results could differ from these estimates and assumptions.

***Cash***

Cash consists of cash on deposit with a financial institution. At June 3, 2025, no funds were restricted.

**3.** **Stockholder's Equity** 

The Company is authorized to issue 1,000 shares of common stock with a par value $0.01 per share. In exchange for $1.00, the Company has issued 100 shares of common stock, all of which were held by DCG Grayscale Holdco, LLC, a wholly-owned subsidiary of Digital Currency Group, Inc., as of June 3, 2025.

**4.** **Subsequent Events** 

The Company evaluated subsequent events through June 27, 2025, the issuance date of its financial statements, and determined that no subsequent events had occurred that would require additional disclosures.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Consolidated Statements of Financial Condition (Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| **Assets:** |  |  |
| &nbsp;&nbsp;Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $98725 | $100188 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 6191 | 2859 |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 502 | 338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from affiliates | 1097 | 863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 106515 | 104248 |
| &nbsp;&nbsp;Investments in digital asset trusts and funds | 760 | 1310 |
| &nbsp;&nbsp;Equity investments | 1619 | 1876 |
| &nbsp;&nbsp;Property and equipment, net | 1173 | 1361 |
| &nbsp;&nbsp;Deferred tax asset, net |  | 607 |
| &nbsp;&nbsp;Right-of-use asset, net | 12943 | 13981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $123010 | $123383 |
| **Liabilities and member's equity** |  |  |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $27156 | $27776 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax payable due to affiliate |  | 3984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability with affiliate, current portion | 1871 | 1742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 29027 | 33502 |
| &nbsp;&nbsp;Operating lease liability with affiliate, net of current portion | 11856 | 12847 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 40883 | 46349 |
| Commitments and Contingencies (Note 15) |  |  |
| **Member's equity:** |  |  |
| &nbsp;&nbsp;Member's equity | 82127 | 77034 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and member's equity | $123010 | $123383 |

---

*See accompanying notes to the unaudited consolidated financial statements.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Consolidated Statements of Operations (Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Operating revenues:** |  |  |
| &nbsp;&nbsp;Management fees, related parties | $198775 | $296514 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 198775 | 296514 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;Employee compensation and benefits | 26389 | 22104 |
| &nbsp;&nbsp;Stock-based compensation | 806 | 1289 |
| &nbsp;&nbsp;Professional fees | 27188 | 20702 |
| &nbsp;&nbsp;Marketing | 12644 | 20729 |
| &nbsp;&nbsp;General, administrative and other | 9541 | 9836 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 76568 | 74660 |
| **Other income:** |  |  |
| &nbsp;&nbsp;Realized and unrealized (losses) gains, net | (416) | 1213 |
| &nbsp;&nbsp;Dividend income | 1243 | 1735 |
| &nbsp;&nbsp;Other income | 176 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income | 1003 | 3033 |
| Income before income taxes | 123210 | 224887 |
| Provision for income taxes | 841 | 54120 |
| **Net income** | $122369 | $170767 |

---

*See accompanying notes to the unaudited consolidated financial statements.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Consolidated Statements of Changes in Member's Equity (Unaudited)**

**(in thousands)**

---

| | |
|:---|:---|
|  | **Member's Equity** |
| **Balance at January 1, 2024** | $91620 |
| &nbsp;&nbsp;Distributions to affiliates | (151903) |
| &nbsp;&nbsp;Stock-based compensation | 1289 |
| &nbsp;&nbsp;Net income | 170767 |
| **Balance at June 30, 2024** | $111773 |
| **Balance at January 1, 2025** | $77034 |
| &nbsp;&nbsp;Distributions to affiliates | (118082) |
| &nbsp;&nbsp;Stock-based compensation | 806 |
| &nbsp;&nbsp;Net income | 122369 |
| **Balance at June 30, 2025** | $82127 |

---

*See accompanying notes to the unaudited consolidated financial statements.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Consolidated Statements of Cash Flows (Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;Net income | $122369 | $170767 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue recognized from management fees | (162558) | (264536) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of digital assets | 162926 | 257751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized (gains) on sale of digital assets, net | (681) | (1174) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses (gains) on digital assets, net | 149 | (72) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on investments in digital asset trusts and funds | 691 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on equity investments | 257 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 368 | 339 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 806 | 1289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 841 | 54120 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (3332) | (4952) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from affiliates | (234) | (181) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset | 1038 | 861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (1461) | 11751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax payable due to affiliate | (10303) | (65191) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability | (862) | (558) |
| Net cash provided by operating activities | 110014 | 160247 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of equipment | (180) | (448) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments in digital asset trusts and funds | (141) | (259) |
| Net cash used in investing activities | (321) | (707) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions to affiliates | (111156) | (151903) |
| Net cash used in financing activities | (111156) | (151903) |
| Net change in cash and cash equivalents | (1463) | 7637 |
| Cash and cash equivalents, beginning of year | 100188 | 111478 |
| Cash and cash equivalents, end of year | $98725 | $119115 |
| **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;Cash paid to affiliate for income taxes | $10454 | $65191 |

---

*See accompanying notes to the unaudited consolidated financial statements.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

**1.** **Organ** **ization**

Grayscale Operating, LLC ("GSO" or the "Company") is a Delaware limited liability company formed on July 11, 2024, and is an indirect wholly-owned subsidiary of Digital Currency Group, Inc. ("DCG"). On January 1, 2025, Grayscale Investments, LLC ("GSI"), the predecessor of GSO, consummated an internal corporate reorganization (the "Reorganization"). On January 1, 2025, GSI entered into an agreement and plan of merger with GSO and DCG Grayscale Holdco, LLC ("DGH"), a direct wholly-owned subsidiary of DCG, pursuant to which GSI merged with and into GSO, with GSO surviving the merger as a wholly-owned subsidiary of DGH (the "Merger"). As a result of the Merger, GSO succeeded by operation of law to all the rights, powers, privileges and franchises and became subject to all of the obligations, liabilities, restrictions and disabilities of GSI, including with respect to the Sponsor Contracts (as defined below), all as provided under the Delaware Limited Liability Company Act. Effective January 1, 2025, GSO Intermediate Holding Corporation ("GSOIH"), which is a direct wholly-owned subsidiary of DGH, became the sole managing member of GSO.

Effective January 1, 2025, Grayscale Securities, LLC ("Grayscale Securities"), Grayscale Advisors, LLC ("Grayscale Advisors"), and Grayscale Investments Sponsors, LLC ("GSIS") are direct wholly-owned subsidiaries of GSO. Grayscale Securities is an introducing broker-dealer, registered with the Securities and Exchange Commission (the "SEC") and a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"), and Grayscale Advisors is a registered investment advisor with the SEC and the advisor of Grayscale Bitcoin Miners ETF (ticker: MNRS), Grayscale Bitcoin Covered Call ETF (ticker: BTCC), Grayscale Bitcoin Premium Income ETF (ticker: BPI) and Grayscale Bitcoin Adopters ETF (ticker: BCOR). GSIS is a Delaware limited liability company and is the sponsor or manager of the Grayscale Products (described below). Offices for GSO, GSIS, Grayscale Securities, and Grayscale Advisors are located at 290 Harbor Drive, 4th Floor, Stamford, Connecticut 06902.

In connection with the Reorganization, on January 1, 2025, and promptly following the effectiveness of the Merger, GSO assigned certain contracts pertaining to its role as sponsor and manager of the Grayscale Products (such contracts, the "Sponsor Contracts") to GSIS, whereby GSIS assumed all of the rights and obligations of GSO under the Sponsor Contracts. Other than the assumption of the Sponsor Contracts by GSIS, the Reorganization does not alter the rights or obligations under any of the Sponsor Contracts. Additionally, GSO and GSIS executed a Certificate of Admission, pursuant to which GSIS was admitted as an additional sponsor and manager of the Grayscale Products. On January 3, 2025, GSO voluntarily withdrew as a sponsor and manager of the Grayscale Products, and, effective May 3, 2025, GSIS is the sole remaining sponsor and manager of the Grayscale Products.

The Merger described above was treated as a reorganization of companies under common control and has been accounted for as a change in reporting entity between entities under common control, as each entity was controlled by DCG. Accordingly, the Company's consolidated financial statements have been presented, giving retroactive effect to the transactions described above, using historical carrying values of the assets and liabilities of GSI in accordance with Accounting Standards Codification ("ASC") 250-10-45-21. For tax reporting purposes, GSI was treated as a corporation and was included in the consolidated federal income tax return, as well as various combined state and local income tax returns, with DCG. GSI and DCG had a tax-sharing agreement, pursuant to which the tax liabilities and attributes were settled as payable and utilized by DCG. GSI's policy was to reflect the income tax expense or benefit and footnote on a separate return basis. GSO is a limited liability company that has elected to be treated as a partnership for tax purposes. It has not made a provision for federal or state income taxes because it is the individual responsibility of each of the Company's members to separately report their proportionate share of the Company's taxable income or loss. In connection with the Reorganization, the net deferred tax asset recorded by GSI as of December 31, 2024 was transferred to GSOIH and DGH. Accordingly, the transfer of the net deferred tax asset of $0.6 million is reflected as an adjustment to equity and included within distributions to affiliates during the six months ended June 30, 2025, within the Consolidated Statements of Changes in Member's Equity.

As of June 30, 2025, GSIS act as the co-sponsor and co-manager of Grayscale Aave Trust (AAVE), Grayscale Avalanche Trust (AVAX), Grayscale Basic Attention Token Trust (BAT) (OTCQX: GBAT), Grayscale Bitcoin Trust

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

ETF (NYSE Arca: GBTC), Grayscale Bitcoin Cash Trust (BCH) (OTCQX: BCHG), Grayscale Bitcoin Mini Trust ETF (NYSE Arca: BTC), Grayscale Bittensor Trust (TAO), Grayscale Chainlink Trust (LINK) (OTCQX: GLNK), Grayscale Decentraland Trust (MANA) (OTCQX: MANA), Grayscale DeepBook Trust (DEEP), Grayscale Dogecoin Trust (DOGE), Grayscale Ethereum Classic Trust (ETC) (OTCQX: ETCG), Grayscale Ethereum Trust ETF (NYSE Arca: ETHE), Grayscale Ethereum Mini Trust ETF (NYSE Arca: ETH), Grayscale Filecoin Trust (FIL) (OTC Markets: FILG), Grayscale Horizen Trust (ZEN) (OTCQX: HZEN), Grayscale Lido DAO Trust (LDO), Grayscale Litecoin Trust (LTC) (OTCQX: LTCN), Grayscale Livepeer Trust (LPT) (OTCQX: GLIV), Grayscale MakerDao Trust (MKR), Grayscale NEAR Trust (NEAR), Grayscale Optimism Trust (OP), Grayscale Pyth Trust (PYTH), Grayscale Solana Trust (SOL) (OTCQX: GSOL), Grayscale Space and Time Trust (SXT), Grayscale Stacks Trust (STX), Grayscale Stellar Lumens Trust (XLM) (OTCQX: GXLM), Grayscale Sui Trust (SUI), Grayscale Walrus Trust (WAL), Grayscale XRP Trust, Grayscale Zcash Trust (ZEC) (OTCQX: ZCSH), Grayscale Decentralized AI Fund LLC, Grayscale Decentralized Finance (DeFi) Fund LLC (OTCQB: DEFG), Grayscale Digital Large Cap Fund LLC (OTCQX: GDLC), and Grayscale Smart Contract Platform Ex Ethereum (ETH) Fund LLC (collectively, the "Grayscale Products" or "Trusts and Funds"), each of which is an affiliate of the Company. GSIS is responsible for the day-to-day administration of the Trusts and Funds which includes monitoring the overall performance of the Trusts and Funds, preparing and providing annual and quarterly reports on behalf of the Trusts and Funds to investors, and is also responsible for selecting and monitoring the Trusts' and Funds' service providers. As payment for aforementioned services, GSIS charges the Trusts and Funds a daily management fee.

Grayscale Dynamic Income Fund LP (the "Partnership") is a Delaware limited partnership that was formed on July 24, 2023 and commenced operations on October 2, 2023. The Partnership was organized for the purpose of optimizing staking rewards from digital assets and generating capital appreciation through investments in digital assets. The Partnership is managed by Grayscale Dynamic Income GP LLC and Grayscale Advisors.

The digital asset custodian of the Company is Coinbase Custody Trust Company, LLC (the "Custodian"), a third-party service provider. The Custodian is responsible for safeguarding the digital assets held by the Company and holding the private key(s) that provide access to the Company's digital wallets and vaults.

**2.** **Summary of Significant Accounting Policies** 

***Basis of Accounting***

These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") as determined by the Financial Accounting Standards Board (the "FASB") within its Accounting Standards Codification ("ASC"). The following is a summary of significant accounting and reporting policies used in preparing the financial statements.

In the opinion of the Company, the accompanying unaudited financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2025, and its results of operations for the six months ended June 30, 2025 and 2024, and cash flows for the six months ended June 30, 2025 and 2024. The statement of financial condition at December 31, 2024, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.

***Principles of Consolidation***

The accompanying consolidated financial statements include the accounts of GSO and its wholly-owned subsidiaries: GSIS, Grayscale Securities and Grayscale Advisors. All intercompany transactions and balances have been eliminated in consolidation. The Company also evaluates the Grayscale Products and other investment vehicles for potential consolidation under the voting interest entity ("VOE") model and variable interest entity ("VIE") model in accordance with FASB ASC Topic 810, *Consolidation*, and, as a result, consolidated Grayscale Dynamic Income GP LLC and Grayscale Dynamic Income Fund LP as of June 30, 2025 and December 31, 2024. The Company has

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

concluded that it does not have the characteristics of the primary beneficiary or a controlling financial interest and therefore does not consolidate the other Grayscale Products as of June 30, 2025 or December 31, 2024.

***Use of Estimates***

The preparation of the consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company's significant estimates and assumptions include the fair value of stock-based awards. Actual results could differ from those estimates.

***Cash and Cash Equivalents***

Cash and cash equivalents may include cash on hand, cash on trading platforms, cash held at brokers, demand deposits, money market funds and short-term highly liquid investments with original maturities of three months or less. The Company maintains its cash and cash equivalents in bank deposit and brokerage accounts whose balances may exceed federally insured limits. Routinely, cash balances will exceed federally insured levels, however, the Company does not believe there is a significant credit risk with respect to these balances. Regional banks may hold funds for limited periods of time in order to facilitate payment of operating expenses and the Company is exposed to credit risk for such institutions for amounts above federally insured levels during those periods. As of June 30, 2025, the Company held no restricted cash. As of December 31, 2024, restricted cash amounted to approximately $0.2 million, which includes cash deposited in a special bank account for the exclusive benefit of customers related to Grayscale Securities' role as authorized participant for the Grayscale Products.

***Prepaid Expenses and Other Assets***

Prepaid expenses and other assets primarily include prepaid amounts relating to various dues and fees for professional services.

***Revenue Recognition***

The Company recognizes revenue under FASB ASC Topic 606, *Revenue from Contracts with Customers*. The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation.

The Company recognizes revenue and other income primarily from the following sources:

*Management Fees*

The Company earns a management fee through its wholly owned subsidiary, GSIS, for acting as the sponsor and manager for the Trusts and Funds. The performance obligation is the management of the Trusts and Funds. While the individual activities that comprise the performance obligation can vary day to day, the nature of the overall performance obligation to provide management service is the same and considered by the Company to be a series of services that have the same pattern of transfer to the customer and the same method to measure progress toward satisfaction of the performance obligation. The series of distinct services represents a single performance obligation

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

that is satisfied over time. The Company recognizes revenue ratably as the Trusts and Funds receive and consume the benefits as they are provided by the Company. Consideration for the Company's services is generally in the form of variable consideration because fees are based on agreed-upon management service fee percentages ranging from 0.15% - 2.5% of the Digital Asset Holdings Fee Basis Amount or Net Asset Value ("NAV") of the Trusts and Funds (as defined in the respective Trust Agreements and LLC Agreements). Such fees are affected by changes in the Digital Asset Holdings Fee Basis Amount or NAV of the Trusts and Funds, including market appreciation or depreciation and net inflows or outflows. The Company includes variable consideration in revenue when it is no longer probable of significant reversal, i.e., when the associated uncertainty is resolved. In exchange for the daily performance of management services, the Company receives noncash consideration in the form of units of the digital asset which are typically settled monthly in arrears. The Company measures the estimated fair value of the noncash consideration on a daily basis at contract inception. Changes in the fair value of the noncash consideration due to form of the consideration (changes in the market price of digital assets) are not included in the transaction price and therefore, are not included in revenue. In performing management services, the Company has discretion to involve third parties in providing services to the Trusts and Funds. The Company is deemed to be the principal in the arrangement because the Company controls the promised services before they are transferred to customers, and accordingly presents the revenue gross of related costs.

Digital assets received by the Company as non-cash consideration related to management fees are converted nearly immediately into cash.

*Realized and Unrealized (Losses) Gains, Net*

Investment income is derived from the Company's holdings of digital assets, holdings of digital asset trusts and funds, and holdings of equity in portfolio companies, and is included in realized and unrealized (losses) gains, net, on the Consolidated Statements of Operations. The Company records its investment transactions on a trade date basis. Realized gains and losses on the sales of investments are recognized at the date of sale as the difference between the sale proceeds and the cost basis of the investment. The cost basis of each investment is determined using a specific identification method which allocates cost based on a tranche methodology, in which each group of investments acquired through one purchase is deemed a tranche. Unrealized gains and losses on an investment consist of the change in fair value of an investment for the period.

***Management Fee Monetization*** 

The Company utilizes derivative contracts to minimize digital asset price risk that may arise in relation to its management fees, which are accrued for in U.S. dollars but are settled by way of receipt of digital asset tokens, and does not apply hedge accounting for such contracts. As noted above, the management fees are accrued daily in U.S. dollar at fair value, however, the Company receives noncash consideration in the form of digital asset tokens. This form of consideration introduces price risk between the daily management fee accrual and the date of receipt of the digital asset tokens from the Trusts and Funds. To minimize this risk, the Company enters into forward contracts periodically throughout the month to deliver a fixed quantity of digital asset tokens at a fixed price to trading counterparties. There were no forward contracts outstanding as of June 30, 2025 or December 31, 2024. Any premiums, unrealized and realized gains and losses related to the forward contracts are included in realized and unrealized (losses) gains, net on the Consolidated Statements of Operations.

***Digital Assets***

The Company uses fair value as its method of accounting for digital assets held that are within the scope of Accounting Standards Update ("ASU") 2023-08, *Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets*. The fair value for each underlying digital asset is determined by which of the eligible digital asset exchanges is the Company's principal market, as further detailed below. Realized gains and losses are calculated using the specific identification method. The cost of each digital asset is determined using a specific identification method which allocates cost based on a tranche methodology, which each group of

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

digital assets acquired through one purchase being deemed a tranche. Changes in net unrealized gains or losses for these digital assets are included in realized and unrealized (losses) gains, net on the Consolidated Statements of Operations.

***Principal Market and Fair Value Determination***

To determine which market is the Company's principal market (or in the absence of a principal market, the most advantageous market) for purposes of determining fair value of individual digital assets, the Company follows FASB ASC Topic 820, *Fair Value Measurement*, ("ASC 820") which outlines the application of fair value accounting. ASC 820 determines fair value to be the price that would be received for digital assets in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820 requires the Company to assume that the digital asset is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.

The Company may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets, and Exchange Markets, each as defined in the FASB Master Glossary (collectively, "Digital Asset Markets"). In determining which of the eligible Digital Asset Markets is the Company's principal market, the Company reviews these criteria in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•First, the Company reviews a list of Digital Asset Markets that maintain practices and policies designed to comply with anti-money laundering ("AML") and know-your-customer ("KYC") regulations, and non-Digital Asset Exchange Markets that the Company reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Second, the Company sorts the remaining Digital Asset Markets from high to low by market-based volume and level of activity of the digital asset traded on each Digital Asset Market in the trailing twelve months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Third, the Company then reviews pricing fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fourth, the Company then selects a Digital Asset Market as its principal market based on the highest market-based volume, level of activity, and price stability in comparison to the other Digital asset Markets on the list. Based on information reasonably available to the Company, Exchange Markets have the greatest volume and level of activity for the asset. The Company therefore looks to accessible Exchange Markets as opposed to the Brokered Market, Dealer Market, and Principal-to-Principal Markets to determine its principal market.

The Company determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market's trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Company has access to, or (iii) if recent changes to each Digital Asset Market's price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Company's determination of its principal market.

***Fair Value Measurement***

The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

would be received for an asset or paid to transfer a liability in the Company's principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity's own assumptions based on market data and the entity's judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances.

Certain assets of the Company are required to be recorded at fair value either on a recurring or nonrecurring basis. The Company's non-financial assets such as property and equipment are recorded at cost. Fair value adjustments are made to these non-financial assets, on a nonrecurring basis, in the period an impairment charge is recognized.

The carrying amounts reflected in the Consolidated Statements of Financial Condition for cash and cash equivalents, prepaid expenses and other assets, accounts payable and accrued expenses and tax payable approximate fair value due to their short-term nature.

The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below:

Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

***Property and Equipment, net***

Property and equipment are stated at cost, less accumulated depreciation. Maintenance and repairs are charged to expense when incurred. Additions and improvements that extend the economic useful life of the asset are capitalized and depreciated over the remaining useful lives of the assets. The cost and accumulated depreciation of assets sold or retired are removed from the respective accounts, and any resulting gain or loss is reflected in current earnings. Depreciation is provided using the straight-line method in amounts considered to be sufficient to amortize the cost of the assets to operations over their estimated useful lives as follows:

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| | |
|:---|:---|
| **Asset** | **Estimated Useful Life** |
| Computer hardware | 3 years |
| Computer software | 3 years |
| Furniture and fixtures | 7 years |

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

Property and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows derived from such assets. Factors that the Company considers in deciding when to perform an impairment review include significant changes in the Company's forecasted projections for the asset or asset group for reasons including, but not limited to, significant changes, or planned changes in the Company's use of the assets and significant negative industry or economic trends. The impairment test is based on a comparison of the undiscounted cash flows expected to be generated from the use of the asset group. If impairment is indicated, the asset is written down by the amount by which the carrying value of the asset exceeds the related fair value of the asset with the related impairment charge recognized within the Consolidated Statements of Operations (see Note 5).

***Leases*** 

The Company accounts for its lease obligations in accordance with FASB ASC Topic 842, *Leases* ("ASC 842"), which requires the recognition of both (i) a lease liability equal to the present value of the remaining lease payments and (ii) an offsetting right-of-use ("ROU") asset. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The lease terms may include options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis, and the ROU assets and lease liabilities are adjusted when it is reasonably certain that an option will be exercised. If a lease arrangement does not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease expense associated with leases that have a term of 12 months or less as of the commencement date are recognized as a component of general and administrative expenses on a straight-line basis over the lease term.

***Stock-Based Compensation***

The Company recognizes stock-based compensation expense for all options and stock appreciation rights ("SARs"), whether expected to be settled in stock or cash, within the scope of FASB ASC Topic 718, *Stock Compensation*, that are expected to vest. Stock-based compensation expense for stock option awards is measured at the date of grant, based on the fair value of the award, and is recognized using the straight-line method over the employee's requisite service period, which is generally the vesting period. The amount of compensation cost recognized reflects the estimated number of awards expected to vest. Compensation cost for stock-based awards is recorded within stock-based compensation on the Consolidated Statements of Operations.

The Company accounts for SARs that provide for cash settlement as liability-classified awards in accordance with ASC 718. Compensation cost for SARs is recognized over the requisite service period, which is generally the vesting period, and is adjusted at each reporting date to reflect changes in the fair value of the awards. SARs are remeasured at fair value at the end of each reporting period through the date of settlement. Upon exercise, the Company will settle SARs in cash calculated as the difference between the fair value of the underlying shares at the exercise date and the exercise price.

Certain awards reference the shares of DCG and not the Company ("DCG Awards"). DCG Awards expected to be settled in cash are recorded as a liability on the books and records of DCG. The impact of remeasuring the DCG Awards each reporting period is reflected in the Company's financial statements, as an offset to capital distribution to DCG (i.e., compensation cost with an offsetting entry to capital distribution). The Company does not record a liability related to employee DCG Awards given the liability-classified awards are reflected as a liability by DCG and are remeasured at intrinsic value under the practical expedient provided by ASU 2016-09, *Compensation–Stock Compensation* ("ASU 2016-09").

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

Certain awards reference the shares of GSOIH and contain performance conditions that require the consummation of an initial public offering ("IPO") before the awards become freely exercisable. In accordance with ASC 718, stock-based compensation expense associated with these awards is not recognized until the IPO is consummated, as such events are not considered probable until they occur. Upon consummation of the IPO, the Company recognizes stock-based compensation expense on a prospective basis over the remaining requisite service period for each vesting tranche. For any tranche in which the requisite service has been rendered as of the IPO date, the remaining unrecognized stock-based compensation expense is recognized in full at that time. SARs classified as liability awards are also remeasured at fair value at each reporting date through the date of settlement.

The Company has elected to account for forfeitures of awards as they occur. As such, stock-based compensation expense is reversed in the period in which a forfeiture is incurred, rather than estimating forfeitures at the grant date. <br>

***Marketing***

Marketing expenses primarily include costs related to branding, advertising and marketing programs. Marketing and advertising costs are expensed as incurred.

***Income Taxes***

Effective January 1, 2025 and for the six months ended June 30, 2025, the Company is a limited liability company and has elected to be treated as a partnership for tax purposes. Accordingly, no provision has been made for federal or state income taxes, since it is the personal responsibility of the individual members of the Company to separately report their proportionate share of the Company's taxable income or loss. The Company has made a provision for New York City Unincorporated Business Tax which is included in provision for income taxes on the Consolidated Statements of Operations.

For the six months ended June 30, 2024, GSI, the predecessor, was included in the consolidated federal income tax return, as well as various combined state and local income tax returns, with DCG. GSI and DCG had a tax-sharing agreement, pursuant to which the tax liabilities and attributes were settled as payable and utilized by DCG. GSI's policy was to reflect the income tax expense or benefit and footnote on a separate return basis.

The Company recognized deferred income tax assets and liabilities for the expected future tax consequences of events on the financial statements in accordance with FASB ASC Topic 740, *Income Taxes*. Under ASC 740, deferred income tax assets and liabilities are based on the differences between book value of assets and liabilities on the balance sheet and tax bases of assets and liabilities, by applying the enacted statutory tax rates in effect for the years when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to an amount that, in the opinion of Management, is "more-likely-than-not" to be realized.

Under ASC 740-10-25, guidance on accounting for uncertainty in income tax positions describes how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. The guidance requires the Company to determine whether a tax position is "more-likely-than-not" to be sustained upon examination, including the resolution of any related appeals or litigation process, based on the technical merits of the position. For tax positions meeting the "more-likely-than-not-threshold", the tax benefit recognized in the financial statements is the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the relevant taxing authorities.

The Company's policy is to accrue interest and penalties associated with unrecognized tax benefits, if applicable, as a component of provision for income taxes in the Consolidated Statements of Operations, and the corresponding liability in tax payable, in the Consolidated Statements of Financial Condition.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

***Segment Information*** 

The Company conducts business as a single operating segment as the sponsor and manager of the Grayscale Products, which is based upon the Company's current organizational and management structure, as well as information used by the Company's Chief Executive Officer and Chief Financial Officer (the chief operating decision makers, or "CODM") to assess operating performance and allocate resources.

***Recent Accounting Pronouncements***

*Accounting Pronouncements Recently Adopted*

On January 30, 2025, the SEC issued Staff Accounting Bulletin ("SAB") No. 122 ("SAB 122"). SAB 122 rescinds the previously issued interpretative guidance included within SAB 121 with respect to accounting for obligations to safeguard crypto assets that an entity holds for its customers. SAB 122 directs an entity to apply FASB ASC Topic 450-20, *Loss Contingencies,* to determine whether an entity has a liability related to risk of loss from an obligation to safeguard crypto assets for customers. The Company has adopted SAB 122 as of December 31, 2024 on a retrospective basis. During the year ended December 31, 2024, the Company entered into a key maintenance agreement with Grayscale Bittensor Trust (TAO) and Grayscale Decentralized AI Fund LLC to facilitate the security of the Bittensor ("TAO") held by the trust and fund, respectively. As a result of the adoption of SAB 122, the Company did not recognize a safeguarding customer crypto asset or safeguarding customer crypto liability related to its role as key maintainer for Grayscale Bittensor Trust (TAO) and Grayscale Decentralized AI Fund LLC. In March 2025, the Company engaged third-party service providers to serve as the custodian of the trust and fund's TAO. As a result as of March 31, 2025, the Company no longer serves as key maintainer of Grayscale Bittensor (TAO) of Grayscale Bittensor Trust (TAO) and Grayscale Decentralized AI Fund LLC.

In December 2023, the FASB issued ASU 2023-09, *Improvements to Income Tax Disclosures* ("ASU 2023-09"), to provide more detailed tax disclosure requirements. The guidance requires entities to disclose qualitative information about significant differences between the statutory tax rate and effective tax rate, income taxes paid, and disaggregate information by foreign and domestic income from continuing operations. The disclosure requirements will be applied on a prospective basis, with the option to apply it retrospectively. This new guidance became effective on January 1, 2025. The Company's adoption of this new standard did not have a material impact on the Company's consolidated financial statements and related disclosures.

*Accounting Pronouncements Not Yet Adopted*

In November 2024, the FASB issued ASU 2024-03, *Expense Disaggregation Disclosures* ("ASU 2024-03"). ASU 2024-03 amends FASB ASC Topic 220, *Comprehensive Income,* to expand income statement expense disclosures and require disclosure in the notes to the financial statements of specified information about certain costs and expenses. The effective date for ASU 2024-03 is for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on the Consolidated Financial Statements.

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

**3.** **Digital Assets**

The following table presents digital assets held by the Company:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| *(Amounts in thousands, except unit amounts)* | **Units** | **Cost Basis** | **Fair Value** |
| Ethereum | 101 | $236 | $254 |
| Ethereum Classic | 15116 | 253 | 246 |
| Bittensor | 5 | 2 | 2 |
| &nbsp;&nbsp;Total digital assets |  | $491 | $502 |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(Amounts in thousands, except unit amounts)* | **Units** | **Cost Basis** | **Fair Value** |
| Ethereum | 101 | $234 | $336 |
| Bittensor | 5 | 2 | 2 |
| &nbsp;&nbsp;Total digital assets |  | $236 | $338 |

---

The following table presents information about the Company's digital assets:

---

| | |
|:---|:---|
| *(Amounts in thousands)* | **Fair Value** |
| **Balance at January 1, 2024** | $194 |
| &nbsp;&nbsp;Digital assets received for management fees | 264536 |
| &nbsp;&nbsp;Proceeds from sale of digital assets | (257751) |
| &nbsp;&nbsp;Realized gain on sale of digital assets, net | 1174 |
| &nbsp;&nbsp;Unrealized gain on digital assets, net | 72 |
| **Balance at June 30, 2024** | $8225 |
| **Balance at January 1, 2025** | $338 |
| &nbsp;&nbsp;Digital assets received for management fees | 162558 |
| &nbsp;&nbsp;Proceeds from sale of digital assets | (162926) |
| &nbsp;&nbsp;Realized gain on sale of digital assets, net | 681 |
| &nbsp;&nbsp;Unrealized loss on digital assets, net | (149) |
| **Balance at June 30, 2025** | $502 |

---

Realized gains and losses are calculated using the specific identification method. For the six months ended June 30, 2025 and 2024, the Company recorded net realized gains of approximately $0.7 million and $1.2 million, respectively, from the sale of digital assets which is included in realized and unrealized (losses) gains, net on the Consolidated Statements of Operations.

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

**4.** **Fair Value Measurements**

The following table presents information about the Company's assets measured at fair value as of the Consolidated Statements of Financial Condition date:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Fair Value Measurement Using** | **Fair Value Measurement Using** | **Fair Value Measurement Using** | **Fair Value Measurement Using** |
| *(Amounts in thousands)* | **Total** | **Level 1** | **Level 2** | **Level 3** | **Net Asset Value** |
| **June 30, 2025** |  |  |  |  |  |
| &nbsp;&nbsp;**Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in money market funds<sup>(1)</sup> | $18280 | $18280 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investments | 1619 |  |  | 1619 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 502 | 500 | 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in digital asset trusts and funds<sup>(2)</sup> | 760 | 469 |  |  | 291 |
|  | $21161 | $19249 | $2 | $1619 | $291 |
| **December 31, 2024** |  |  |  |  |  |
| &nbsp;&nbsp;**Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in money market funds<sup>(1)</sup> | $71442 | $71442 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investments | 1876 |  |  | 1876 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 338 | 336 | 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in digital asset trusts and funds<sup>(2)</sup> | 1310 | 1061 |  |  | 249 |
|  | $74966 | $72839 | $2 | $1876 | $249 |

---

(1)Included in cash and cash equivalents in the Consolidated Statements of Financial Condition.

(2)Investments not yet quoted on a secondary market are recorded using net asset value and are shown for purposes of reconciling to the Consolidated Statements of Financial Condition.

Equity investments classified as Level 3 primarily represent an investment in an asset manager made in 2021 for which limited distributions have been received to date and no material events or transactions have occurred that would require an adjustment to the carrying value. There were no transfers of financial assets or liabilities to or from Level 3 during the six months ended June 30, 2025 and 2024.

**5.** **Property and Equipment, net**

Property and equipment, net consists of the following:

---

| | | |
|:---|:---|:---|
| *(Amounts in thousands)* | **June 30, 2025** | **December 31, 2024** |
| Computer hardware | $630 | $566 |
| Computer software | 1638 | 1530 |
| Furniture and fixtures | 127 | 120 |
| &nbsp;&nbsp;Total property and equipment | 2395 | 2216 |
| Accumulated depreciation | (1222) | (855) |
| &nbsp;&nbsp;Total property and equipment, net | $1173 | $1361 |

---

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

Depreciation expense was approximately $0.4 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively, and is included in general, administrative, and other expense on the Consolidated Statements of Operations. During the six months ended June 30, 2025 and 2024, the Company did not record any impairments of property and equipment.

**6.** **Leases** 

Effective January 1, 2024, the Company entered into an operating lease with DCG for its corporate headquarters office facilities. The lease has escalating rent payments through the expiration date of January 31, 2034, with the option to terminate the lease beginning on January 1, 2027.

The following table summarizes the Company's lease cost included in general, administrative and other expense in the Consolidated Statements of Operations:

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** |
| *(Amounts in thousands)* | **2025** | **2024** |
| Operating lease cost | $1339 | $1339 |
| &nbsp;&nbsp;Total lease cost | $1339 | $1339 |

---

Supplemental information related to operating leases is summarized below:

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** |
| *(Amounts in thousands)* | **2025** | **2024** |
| Operating cash flows for operating leases | $1163 | $1036 |
| Right-of-use assets obtained in exchange for lease obligations | $— | $16010 |

---

The following table presents information regarding the Company's operating lease:

---

| | | |
|:---|:---|:---|
| *(Amounts in thousands)* | **June 30, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| Right-of-use asset, net | $12943 | $13981 |
| &nbsp;&nbsp;Total lease assets | $12943 | $13981 |
| **Liabilities** |  |  |
| Operating lease liability, current portion | $1871 | $1742 |
| Operating lease liability, net of current portion | 11856 | 12847 |
| &nbsp;&nbsp;Total lease liability | $13727 | $14589 |
|  | **June 30, 2025** | **December 31, 2024** |
| Weighted average remaining lease term (in years) - operating leases | 5.50 | 6.00 |
| Weighted average discount rate - operating leases | 4.23% | 4.23% |

---

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

The following table summarizes the maturities of lease liabilities at June 30, 2025:

---

| | |
|:---|:---|
| *(Amounts in thousands)* |  |
| &nbsp;&nbsp;**Fiscal Year ending December 31,** | **Operating Leases** |
| &nbsp;&nbsp;2025 | $1163 |
| &nbsp;&nbsp;2026 | 2507 |
| &nbsp;&nbsp;2027 | 2689 |
| &nbsp;&nbsp;2028 | 2870 |
| &nbsp;&nbsp;2029 | 3052 |
| &nbsp;&nbsp;Thereafter | 3234 |
| Total minimum lease payments | $15515 |
| Less effects of discounting | (1788) |
| Total operating lease liability | $13727 |

---

**7.** **Accounts Payable and Accrued Expenses**

Accounts payable and accrued expenses consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Accrued bonus | $6703 | $12954 |
| Accounts payable | 12607 | 4951 |
| Other accrued expenses | 7846 | 9871 |
| &nbsp;&nbsp;Total | $27156 | $27776 |

---

**8.** **Member's Equity**

As of December 31, 2024, pursuant to the terms of the Limited Liability Company Agreement (the "LLC Agreement") in effect at the time, the business and affairs of the Company were managed and operated by DCG, which controlled the Company's sole member. On January 1, 2025, GSI completed an internal corporate reorganization following which the Company is managed by its sole managing member, GSO Intermediate Holdings Corporation, which is an indirectly wholly owned subsidiary of DCG.

**9.** **Concentrations**

The following table presents information about the Company's concentration of revenues earned as sponsor or manager of the Grayscale Products:

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** |
| **Grayscale Product** | **2025** | **2024** |
| Grayscale Bitcoin Trust ETF | 70% | 56% |
| Grayscale Ethereum Trust ETF | 19% | 39% |

---

The following table presents information about the Company's concentration of digital asset holdings:

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

---

| | | |
|:---|:---|:---|
| **Digital Asset** | **June 30, 2025** | **December 31, 2024** |
| Ethereum | 51% | 99% |
| Ethereum Classic | 49% | — % |

---

**10.** **Stock-based Compensation** 

***Digital Currency Group, Inc. 2016 Stock Plan***

The 2016 Stock Plan, as amended, (the "2016 Plan") provides for the grant of stock options and restricted stock to employees, directors, and consultants of DCG or certain subsidiary corporations. As of June 30, 2025, the maximum number of shares of common stock that may be issued over the term of the 2016 Plan shall not exceed 8,211,466 shares. Accordingly, DCG has reserved a sufficient number of shares of common stock to permit the exercise of options in accordance with the terms of the 2016 Plan. DCG's Board of Directors is responsible for administration of the 2016 Plan and has the sole discretion to determine which grantees will be granted awards and the terms and conditions of the awards granted. Option awards are generally granted with an exercise price equal to the market price of DCG's stock at the date of grant and generally vests 25% on the one-year anniversary from the grant date with the remaining 75% vesting in equal quarterly installments over the following three years and have 10-year contractual terms.

The following table summarizes the activities related to stock options granted by DCG under the 2016 Plan to the Company's employees:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of Options<br>(in Shares)** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Term (in years)** |
| Outstanding, January 1, 2025 | 82561 | $112.14 | 6.98 |
| &nbsp;&nbsp;Granted |  |  |  |
| &nbsp;&nbsp;Exercised |  |  |  |
| &nbsp;&nbsp;Forfeited or cancelled |  |  |  |
| Outstanding June 30, 2025 | 82561 | $112.14 | 6.49 |
| Exercisable, June 30, 2025 | 81187 | $111.73 | 6.48 |

---

During the six months ended June 30, 2025 and 2024, the Company recorded stock-based compensation expense of $0 and $0.3 million, respectively, related to stock options under the 2016 Plan which is included in stock-based compensation expense on the Consolidated Statements of Operations. As of June 30, 2025, no unrecognized compensation expense related to non-vested awards is expected to be recognized over the weighted average remaining vesting period of 0.5 years, which is dependent on the subsequent intrinsic value of the awards.

***Digital Currency Group, Inc. Stock Appreciation Rights Plan***

The Stock Appreciation Rights Plan (the "SARs Plan") provides for the grant of stock appreciation rights to employees, directors, and key persons of DCG and any subsidiary. The SARs Plan provides the employees with the right to receive, at the date the rights are exercised, cash settlements in the amount equal to the fair value of the market appreciation of the common stock since the grant date of the rights. The SARs typically vest 25% on the one-year anniversary from the grant date with the remaining 75% vesting in equal quarterly installments over the following three years. DCG's Board of Directors is responsible for administration of the SARs Plan and has the sole discretion to determine which grantees will be granted awards and the terms and conditions of the awards granted.

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

The following table summarizes the activities related to SARs granted by DCG under the SARs Plan to the Company's employees:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of SARs <br>(in Shares)** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Term (in years)** |
| Outstanding, January 1, 2025 | 289240 | $36.44 | 6.37 |
| &nbsp;&nbsp;Granted |  |  |  |
| &nbsp;&nbsp;Exercised | (102393) | 16.69 |  |
| &nbsp;&nbsp;Forfeited or cancelled | (3178) | 29.10 |  |
| Outstanding June 30, 2025 | 183669 | $47.58 | 7.36 |
| Exercisable, June 30, 2025 | 113000 | $56.86 | 7.03 |

---

During the six months ended June 30, 2025 and 2024, the Company recorded share-based compensation expense of approximately $0.8 million and $1.0 million, respectively, related to SARs which is included in stock-based compensation expense on the Consolidated Statements of Operations. As of June 30, 2025, approximately $1.3 million of unrecognized compensation expense related to non-vested awards is expected to be recognized over the weighted average remaining vesting period of 1.3 years, which is dependent on the subsequent intrinsic value of the awards.

***GSO Intermediate Holdings Corporation Omnibus 2025 Incentive Plan***

The GSO Intermediate Holdings Corporation Omnibus Incentive Plan, (the "Omnibus Plan") was adopted on March 19, 2025, under which employees, non-employee directors, or consultants of the Company are eligible to receive grants of shares as consideration for the provision of certain services to the Company and its subsidiaries and affiliates. The Omnibus Plan provides for the issuances of up to 10,000,000 shares of GSOIH Class A common stock for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other cash-based or stock-based awards. The Board of Directors of GSOIH is responsible for administration of the Omnibus Plan and has the sole discretion to determine which grantees will be granted awards and the terms and conditions of the awards granted. As of June 30, 2025, GSOIH has granted equity-based awards to grantees in the form of stock options and SARs under the Omnibus Plan.

Stock option and SARs awards granted under the Omnibus Plan vest in accordance with the terms of the individual award agreement. However, both stock options and SARs are exercisable only upon the consummation of an initial public offering ("IPO") or other qualified liquidity event. As of June 30, 2025, GSOIH has not consummated an IPO or other qualified liquidity event. Accordingly, no compensation expense has been recognized for these awards. The Company will begin recognizing compensation expense in the period in which the IPO or other liquidity event is consummated, based on the grant-date fair value for stock options and the fair value at each reporting date for SARs.

The Company determined the fair value of stock options granted utilizing the Black-Scholes valuation model and based upon the assumptions as provided below: <br>

---

| | |
|:---|:---|
|  | **Six Months Ended June 30, 2025** |
| Exercise price | 24.24 |
| Dividend yield | 0.0% |
| Expected volatility | 44.0% |
| Risk-free interest rate | 4.0% |
| Expected life (in years) | 5.77 |

---

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

The following table summarizes the activities related to stock options granted by GSOIH under the Omnibus Plan to the Company's employees: <br>

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of Options<br>(in Shares)** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Term (in years)** |
| Outstanding, January 1, 2025 |  | $— |  |
| &nbsp;&nbsp;Granted | 2829462 | 24.24 |  |
| &nbsp;&nbsp;Forfeited | (134538) | 24.24 |  |
| Outstanding, June 30, 2025 | 2694924 | $24.24 | 9.73 |
| Exercisable, June 30, 2025 |  |  |  |

---

No compensation cost was recognized for stock options during the six months ended June 30, 2025, as the IPO performance condition had not been satisfied. As of June 30, 2025, total unrecognized compensation cost related to nonvested stock options was $25.1 million, which is expected to be recognized over a weighted-average period of 3.31 years, beginning upon the consummation of an IPO.

*Stock Appreciation Rights* 

The SARs provide the employees with the right to receive, at the date the rights are exercised, cash settlements in the amount equal to the fair value of the market appreciation of the common stock since the grant date of the rights over and above an exercise price. SARs generally have a maximum contractual term of 10 years from the grant date. The SARs typically vest 25% on the one-year anniversary of the vesting commencement date, with the remaining 75% vesting in equal quarterly installments over the following three years, subject to continued service. The SARs are liability-classified awards under ASC 718, as they are expected to be settled in cash. Accordingly, the fair value of the SARs is remeasured at each reporting date until settlement. Compensation cost is recognized over the requisite service period and adjusted each period to reflect changes in fair value.

The following table summarizes the activities related to SARs granted by GSOIH under the Omnibus Plan to the Company's employees: <br>

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of SARs<br>(in Shares)** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Term (in years)** |
| Outstanding, January 1, 2025 |  | $— |  |
| &nbsp;&nbsp;Granted | 1166584 | 9.76 |  |
| &nbsp;&nbsp;Forfeited | (68881) | 9.76 |  |
| Outstanding, June 30, 2025 | 1097703 | $9.76 | 9.70 |
| Exercisable, June 30, 2025 |  |  |  |

---

No compensation cost was recognized for SARs during the six months ended June 30, 2025, as the IPO performance condition had not been satisfied. As of June 30, 2025, total unrecognized compensation cost related to nonvested SARs was $10.1 million, which is expected to be recognized over a weighted-average period of 3.38 years, beginning upon the consummation of an IPO. <br>

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

**11.** **Employee Benefit Plans**

The Company has a 401(k) savings plan covering all eligible employees in which the Company can make discretionary contributions from its profits. During the six months ended June 30, 2025 and 2024, the expense recognized in connection with this plan was approximately $0.9 million and $0.6 million, respectively, which is included in employee compensation and benefits expense on the Consolidated Statements of Operations.

**12.** **Income Taxes** 

Effective January 1, 2025 in connection with the Reorganization, the Company has elected to be treated as a partnership for tax purposes. Accordingly, no provision has been made for federal or state income taxes, since it is the personal responsibility of the individual members of the Company to separately report their proportionate share of the Company's taxable income or loss for the six months ended June 30, 2025. The Company has made a provision for New York City Unincorporated Business Tax ("UBT") in the amount of approximately $0.8 million for the six months ended June 30, 2025. Prior to January 1, 2025, GSI, the predecessor, was treated as corporation for tax purposes.

The components of the income tax provision for the six months ended June 30, 2024 are as follows:

---

| | |
|:---|:---|
|  | **Six months ended June 30,** |
|  | **2024** |
| **Current income tax expense (benefit):** |  |
| &nbsp;&nbsp;Federal | $45984 |
| &nbsp;&nbsp;State and other | 8791 |
|  | $54775 |
| **Deferred income tax expense (benefit):** |  |
| &nbsp;&nbsp;Federal | (680) |
| &nbsp;&nbsp;State and other | 25 |
|  | (655) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total income tax expense | $54120 |

---

Income tax expense for the six months ended June 30, 2024 differs from the amount calculated by applying the federal statutory rate of 21% to pretax income as follows:

---

| | | |
|:---|:---|:---|
|  | **Six months ended June 30, 2024** | **Six months ended June 30, 2024** |
|  | **Amount** | **Rate** |
| Tax expense at federal statutory rate | $47226 | 21.0% |
| Increase (decrease) in tax expense at federal statutory rate: |  |  |
| &nbsp;&nbsp;State and local income taxes, net of federal tax | 6882 | 3.1% |
| &nbsp;&nbsp;Permanent items | 120 | 0.0% |
| &nbsp;&nbsp;True-up and rate change | (108) | 0.0% |
| Effective tax rate | $54120 | 24.1% |

---

Temporary differences accumulate in deferred income tax balances and are recorded as deferred tax assets and deferred tax liabilities. On December 31, 2024, the components of deferred tax assets and liabilities were as follows:

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

---

| | |
|:---|:---|
|  | **December 31, 2024** |
| **Deferred tax assets** |  |
| &nbsp;&nbsp;Compensation and benefits | $1213 |
| &nbsp;&nbsp;Bad debt | 300 |
| &nbsp;&nbsp;Other | 313 |
|  | $1826 |
| **Deferred tax liabilities** |  |
| &nbsp;&nbsp;Depreciation and amortization | (291) |
| &nbsp;&nbsp;Unrealized gains | (116) |
| &nbsp;&nbsp;Prepaid expenses | (632) |
| &nbsp;&nbsp;Other | (180) |
|  | (1219) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax asset | $607 |

---

In connection with the Reorganization, the net deferred tax asset recorded by GSI as of December 31, 2024 was transferred to GSOIH and DGH.

ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements and prescribes a recognition threshold of "more-likely-than-not" to be sustained upon examination. The Company has not identified any uncertain tax positions that warrant tax reserves based on the "more-likely-than-not threshold."

The Company does not have any unrecognized tax benefits to significantly change in the next 12 months.

Management has assessed the positive and negative evidence to determine whether a valuation allowance against the existing gross deferred tax assets is required. Since inception, GSI had generated significant taxable income in each year and projects that sufficient future taxable income will be generated. After consideration of the evidence applicable to GSI, Management believes that it is more-likely-than-not that the gross deferred tax asset will be realized in the future. As a result, at December 31, 2024, GSI did not have a valuation allowance recorded against its deferred tax asset.

GSI was included in the consolidated federal income tax return, as well as various combined state and local income tax returns, with DCG. The Company and DCG have a tax-sharing agreement, pursuant to which the tax attributes are settled as utilized by DCG.

The Company is subject to U.S. federal income tax and state and local income tax in multiple jurisdictions. As of June 30, 2025, the earliest year the Company remains subject to examination by the Internal Revenue Service is for the tax year ending December 31, 2021. The earliest year the Company remains subject to examination by state and local tax authorities is the tax year ending December 31, 2018. The combined New York State City return is currently under audit for tax years ending December 31, 2018 to December 31, 2022.

**13.** **Credit Agreement**

On May 15, 2023, the Company entered into an amended Coinbase Post-Trade Financing Agreement with Coinbase Credit, Inc. (the "Credit Agreement") providing for a $45.0 million post-trade line of credit which may be drawn upon at any time. The Credit Agreement represents an extension of trading credits used in connection with intraday trading of digital assets on the Custodian's trading platform. Trading credits are settled by way of delivery of the applicable digital assets traded and are typically settled within one business day of the trade order. Borrowings under the Credit Agreement bear interest at a fixed rate of 0.04% simple interest per calendar day to be paid on the basis of the aggregate maximum amount drawn by the Company in the same type of digital asset for which the trade-trade line of credit was utilized.

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

As of June 30, 2025 and 2024, there were no outstanding amounts drawn from the Credit Agreement.

**14.** **Segment Reporting** 

The Company acts as sponsor and manager to the Grayscale Products as described in Note 1. The Company uses a consolidated approach to assess performance and allocate resources and as such operates in a single reportable segment. The Company's Chief Executive Officer and Chief Financial Officer are the chief operating decision maker ("CODM") and regularly receives financial information and management reports that are prepared on a consolidated basis. The CODM uses net income as reported on the Consolidated Statements of Operations and total assets as reported on the Consolidated Statements of Financial Condition to assess operating performance and allocate resources. The CODM receives expense information consistent with the financial information included on the Company's Consolidated Statement of Operations.

**15.** **Commitments and Contingencies** 

From time to time, the Company is involved in legal matters relating to claims arising in the ordinary course of business. There are currently no such matters pending that the Company believes could have a material adverse effect on its consolidated results of operations, cash flows or financial position. In addition, in the normal course of business, the Company may enter into contracts with service providers that contain general indemnification clauses. The Company has had no claims or payments pursuant to these agreements, and it believes the likelihood of a claim being made is remote. The Company's estimate of the value of such guarantees is de minimis, and therefore, no accrual has been made in the consolidated financial statements.

**16.** **Risk and Uncertainties**

The Company's operating activities expose it to various types of risk that are associated with the sponsorship and management of the Grayscale Products, the markets in which the Grayscale Products operate, as well as the risks associated with digital assets as the consideration received for providing such services is denominated in digital assets. The significant types of risks to which the Company is exposed include, but are not limited to market risk, industry risk, regulatory risk, liquidity risk, concentration risk, credit risk, counterparty risk, and digital asset risk. Certain aspects of those risks include, but are not limited to, the risk of loss related to value of accrued receivables from the Grayscale Products and the ultimate value of the digital assets delivered to the Company, and the risk that the Grayscale Products for which revenues are highly concentrated, and their underlying digital assets will decrease in value such that the Company becomes unprofitable or subject to regulatory changes that may adversely affect the Company. The digital asset industry is currently largely unregulated, highly speculative, and volatile. The price of digital assets has a limited history. During such history, digital asset prices have been volatile and subject to influence by many factors including the levels of liquidity. If digital asset markets continue to experience significant price fluctuations, the Company may experience substantial losses. Several factors may affect the price of digital assets, including, but not limited to, global supply and demand, and competition from other forms of digital asset or payment services. The Company plans to mitigate these risks through continued diversification of its investments and operating activities.

Requests to list the shares of other funds on national securities exchanges have been submitted to the SEC. On January 10, 2024 and May 23, 2024, the SEC approved NYSE Arca's 19b-4 application to list the shares of Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF, respectively, on NYSE Arca as exchange-traded products. However, even though NYSE Arca's requests with respect to Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF were approved, there is no guarantee that a similar application to list shares of the other Grayscale Products, on NYSE Arca or another national securities exchange, would also be approved.

Grayscale Bitcoin Trust ETF, Grayscale Ethereum Trust ETF and the Company face competition with respect to the creation of competing exchange-traded spot Bitcoin and Ether products, among other digital asset vehicles, several of which have applications pending before the SEC or have already received SEC approval. Whether Grayscale

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

Bitcoin Trust ETF, Grayscale Ethereum Trust ETF or any other Grayscale Product with a similar application to list shares on NYSE Arca as an exchange-traded product, is successful in maintaining its scale and achieving its intended competitive position may be impacted by a range of factors, including Grayscale Product's timing in entering the market relative to competing spot Bitcoin or other digital asset exchange traded products and its fee structure relative to those competing products. Competitors of Grayscale Bitcoin Trust ETF, Grayscale Ethereum Trust ETF or other Grayscale Products may also charge a substantially lower fee than the sponsor's fee in an effort to achieve initial market acceptance and scale, which could cause investors to favor such competing products over Grayscale Bitcoin Trust ETF, Grayscale Ethereum Trust ETF or other Grayscale Products. If Grayscale Bitcoin Trust ETF does not maintain sufficient scale due to competition, the Company may have difficulty raising sufficient revenue to cover the costs associated with maintaining Grayscale Bitcoin Trust ETF or other Grayscale Products.

**17.** **Related Party Transactions**

In accordance with the Trusts' and Funds' Trust Agreements and LLC Agreements, respectively, the Company earns a daily management fee ranging from 0.15% - 2.5% of the aggregate value of the applicable Trust's or Fund's assets, less liabilities. For the six months ended June 30, 2025 and 2024, the Company earned $198.8 million and $296.5 million, respectively, in management fees related to the Trusts and Funds. The revenue is recorded in the management fees, related parties on the Consolidated Statements of Operations. A portion of the management fees was derived from the shares held by DCG and certain affiliates of the Company in the Trusts and Funds.

The Company, from time to time, may temporarily waive all or a portion of the management fee of the Grayscale Products in its discretion for stated periods of time. Effective July 23, 2024, the Company waived a portion of the ETH Trust sponsor's fee for the first six months, so that the fee was 0% of the NAV of the ETH Trust for the first $2.0 billion of the ETH Trust's assets. As of December 31, 2024, ETH Trust's assets did not exceed $2.0 billion and no sponsor's fee for ETH Trust had been incurred. However, after the six-month waiver period expired on January 23, 2025, the sponsor's fee for ETH Trust is now 0.15%.

The Company has made, and may continue to make, distributions of excess cash and digital assets to its affiliates, GSOIH and DGH, and DCG. During the six months ended June 30, 2025, the Company distributed $111.0 million in cash to GSOIH and DGH. Additionally, during the six months ended June 30, 2025, the Company paid $10.3 million to DCG as payment for income taxes related to the accrued tax liability as of December 31, 2024. The Company recorded a tax provision adjustment of $6.3 million to DCG which was reflected as an adjustment to equity and included within distributions to affiliates during the six months ended June 30, 2025. In addition, in connection with the Reorganization, the Company transferred the net deferred tax asset of $0.6 million which was reflected as an adjustment to equity and included within distributions to affiliates during the six months ended June 30, 2025. During the six months ended June 30, 2024, the Company distributed $151.9 million in cash to DCG. Additionally, during the six months ended June 30, 2024, the Company paid $65.2 million to DCG as payment for income taxes.

The Company recognizes stock-based compensation expense for options and other arrangements related to awards that reference the shares of DCG and not the Company. Awards that reference the shares of DCG and are expected to be settled in cash are recorded as a liability on the books and records of DCG.

DCG also provides certain shared services to the Company including, but not limited to, occupancy, food services, maintenance and security. In addition, effective January 1, 2024, the Company signed an operating lease with DCG for its corporate headquarters office facilities in Stamford, CT. The term of the operating lease agreement commenced on January 1, 2024 and continues until January 31, 2034, unless terminated sooner by either party in accordance with the lease agreement.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**Grayscale Operating, LLC and Subsidiaries**

**Notes to the Unaudited Consolidated Financial Statements**

**18.** **Legal Proceedings**

The Company and Grayscale Bitcoin Trust ETF, are currently parties to the following legal proceeding:

On January 30, 2023, Osprey Funds, LLC ("Osprey") filed a suit in Connecticut Superior Court against the Company alleging that statements the Company made in its advertising and promotion of Grayscale Bitcoin Trust ETF violated the Connecticut Unfair Trade Practices Act ("CUPTA"), and seeking statutory damages and injunctive relief. On April 17, 2023, the Company filed a motion to dismiss the complaint and, following briefing, a hearing on the motion to dismiss was held on June 26, 2023. On October 23, 2023, the Court denied the Company's motion to dismiss. On November 6, 2023, the Company filed a motion for reargument of the Court'sorder denying the Company's motion to dismiss. On November 16, 2023, Osprey filed an opposition to the Company's motion for reargument, and on November 30, 2023, the Company filed a reply in further support of its motion for reargument. On March 11, 2024, the Court denied the Company's motion for reargument. On March 25, 2024, the Company filed an application for interlocutory appeal. On March 28, 2024, Osprey filed an opposition to the Company's application for interlocutory appeal. On April 1, 2024, the Court denied the Company's application for interlocutory appeal. On April 10, 2024, Osprey filed a motion to amend the complaint. The amended complaint went into effect on April 25, 2024. A scheduling order was entered by the Court with trial scheduled to begin on July 15, 2025. On July 31, 2024, the Company filed a motion to strike the amended complaint. On August 30, 2024, Osprey filed an opposition to the Company's motion to strike the amended complaint. On October 11, 2024, the Court denied the Company's motion to strike. On November 22, 2024, the Company filed a motion for summary judgment on the grounds that CUTPA does not apply to practices undertaken in connection with the purchase and sale of securities, and the Court granted the Company's motion for summary judgment on February 7, 2025. On February 10, 2025, Osprey filed a motion for reargument and the Court denied Osprey's motion for reargument on March 19, 2025. On March 31, 2025, Osprey filed a Notice of Appeal of the summary judgment decision and the Court's denial of the motion for reargument to the Connecticut Appellate Court. On May 12, 2025, Osprey withdrew the amended complaint and the appeal.

On May 19, 2025, Genesis Global Capital, LLC ("Genesis Capital") and Genesis Asia Pacific Pte. Ltd. ("Genesis Asia") filed a complaint in the United States Bankruptcy Court for the Southern District of New York ("SDNY Bankruptcy Court") against DCG and certain of its affiliates including the Company alleging that Genesis Capital made certain preferential transfers to the Company during the preference period prior to Genesis Capital's filing of a bankruptcy petition in SDNY Bankruptcy Court while the Company was allegedly an insider to Genesis Capital pursuant to 11 U.S.C. § 101(31). Genesis Capital seeks to avoid the alleged preferential transfers pursuant to 11 U.S.C. § 547(b), as well as recovery of property and disallowance of claims. The Company believes this lawsuit is without merit and intends to vigorously defend against it.

As of the date of this report, the Company does not expect the foregoing proceeding to have a material adverse effect on the Company's business, financial condition, or results of operations.

The Company may be subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business.

**19.** **Subsequent Events**

The Company evaluated subsequent events through the date of issuance of the consolidated financial statements and determined there were no subsequent events that require disclosure and/or adjustment. <br>

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholder<br>Grayscale Operating, LLC:

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated statements of financial condition of Grayscale Operating, LLC and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, changes in member's equity, and cash flows for the years then ended, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

*Basis for Opinion*

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Company's auditor since 2024.

New York, New York

March 14, 2025, except for Note 1, as to which the date is July 8, 2025

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **GRAYSCALE OPERATING, LLC AND SUBSIDIARIES** 

# **CONSO LIDATED STATEMENTS OF FINANCIAL CONDITION** 

# **(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $100188 | $111478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 2859 | 3951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 338 | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from DCG | 863 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 104248 | 115623 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments in digital asset trusts and funds | 1310 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investments | 1876 | 1862 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 1361 | 1517 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset, net | 607 | 3360 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset, net | 13981 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $123383 | $122382 |
| **Liabilities and member's equity** |  |  |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $27776 | $18665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax payable due to DCG | 3984 | 12097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability with DCG, current portion | 1742 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 33502 | 30762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability with DCG, net of current portion | 12847 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 46349 | 30762 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies (Note 14) |  |  |
| **Member's equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Member's equity | 77034 | 91620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and member's equity | $123383 | $122382 |

---

*See accompanying notes to the consolidated financial statements.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **GRAYSCALE OPERATING, LLC AND SUBSIDIARIES** 

# **CONSOLI DATED STATEMENTS OF OPERATIONS** 

# **(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| **Operating revenues:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fees, related parties | $506157 | $512707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 506157 | 512707 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation and benefits | 43878 | 25701 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 2563 | 12725 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for related party receivables |  | 869 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 42309 | 31035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing | 32847 | 19274 |
| &nbsp;&nbsp;&nbsp;&nbsp;General, administrative and other | 19195 | 10560 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 140792 | 100164 |
| **Other income:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized and unrealized gains, net | 2490 | 18107 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividend income | 3812 | 1606 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 61 | 330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 6363 | 20043 |
| Income before income taxes | 371728 | 432586 |
| Provision for income taxes | 89579 | 107633 |
| **Net income** | $282149 | $324953 |

---

*See accompanying notes to the consolidated financial statements.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **GRAYSCALE OPERATING, LLC AND SUBSIDIARIES** 

# **CONS OLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY** 

# **(in thousands)** 

---

| | |
|:---|:---|
|  | **Member's Equity** |
| **Balance at January 1, 2023** | $20535 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions to DCG | (266593) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 12725 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 324953 |
| **Balance at December 31, 2023** | 91620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distributions to DCG | (299298) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 2563 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 282149 |
| **Balance at December 31, 2024** | $77034 |

---

*See accompanying notes to the consolidated financial statements.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **GRAYSCALE OPERATING, LLC AND SUBSIDIARIES** 

# **CON SOLIDATED STATEMENTS OF CASH FLOWS** 

# **(in thousands)** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;Net income | $282149 | $324953 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue recognized from management fees | (506078) | (512707) |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue from staking | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of digital assets | 507672 | 300075 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized (gains) on sale of digital assets, net | (1673) | (17204) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gains) on digital assets, net | (61) | (535) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gains) on investments in digital asset trusts and funds | (742) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gains) on equity investments | (14) | (367) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 700 | 284 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of property and equipment |  | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 2563 | 12725 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax benefit, net | 2753 | 1470 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for related party receivables |  | 869 |
| &nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 1092 | (2790) |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use asset | 2029 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from DCG | (770) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due from related party |  | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 9111 | 6451 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax payable due to DCG | (8113) | 39112 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liability | (1421) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related party |  | (47) |
| Net cash provided by operating activities | 289193 | 152361 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;Purchases of equipment | (637) | (1524) |
| &nbsp;&nbsp;Purchases of investments |  | (251) |
| &nbsp;&nbsp;Purchases of investments in digital asset trusts and funds | (548) | (14) |
| Net cash used in investing activities | (1185) | (1789) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;Distributions to DCG | (299298) | (44806) |
| Net cash used in financing activities | (299298) | (44806) |
| Net change in cash and cash equivalents | (11290) | 105766 |
| Cash and cash equivalents, beginning of year | 111478 | 5712 |
| Cash and cash equivalents, end of year | $100188 | $111478 |
| **Supplemental disclosure of non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;Digital asset distributions to DCG | $— | $221787 |
| &nbsp;&nbsp;Income taxes paid to DCG in digital assets | $— | $39607 |
| **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;Cash paid to DCG for income taxes | $94940 | $64266 |

---

*See accompanying notes to the consolidated financial statements.*

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**1.** **Organ** **ization**

Grayscale Investments, LLC ("GSI") is a Delaware limited liability company formed on May 29, 2013, and is a wholly-owned subsidiary of Digital Currency Group, Inc. ("DCG"). On January 1, 2025, GSI consummated an internal corporate reorganization (the "Reorganization"), pursuant to which GSI merged with and into Grayscale Operating, LLC, a Delaware limited liability company and a wholly owned indirect subsidiary of Digital Currency Group, Inc. ("GSO" or the "Company"), with GSO continuing as the surviving company (the "Merger"). As a result of the Merger, GSO succeeded by operation of law to all the rights, powers, privileges and franchises and became subject to all of the obligations, liabilities, restrictions and disabilities of GSI. Please refer to the subsequent events discussed in Note 18, *Subsequent Events*, for more information.

The Merger described above was treated as a reorganization of companies under common control and has been accounted for as a change in reporting entity between entities under common control, as each entity was controlled by DCG. Accordingly, the Company's consolidated financial statements have been presented, giving retroactive effect to the transactions described above, using historical carrying values of the assets and liabilities of Grayscale Investments, LLC in accordance with Accounting Standards Codification ("ASC") 250-10-45-21.

As of December 31, 2024, the Company acts as the sponsor and manager of Grayscale Aave Trust (AAVE), Grayscale Avalanche Trust (AVAX), Grayscale Basic Attention Token Trust (BAT) (OTCQX: GBAT), Grayscale Bitcoin Trust ETF (NYSE Arca: GBTC), Grayscale Bitcoin Cash Trust (BCH) (OTCQX: BCHG), Grayscale Bitcoin Mini Trust ETF (NYSE Arca: BTC), Grayscale Bittensor Trust (TAO), Grayscale Chainlink Trust (LINK) (OTCQX: GLNK), Grayscale Decentraland Trust (MANA) (OTCQX: MANA), Grayscale Dogecoin Trust (DOGE), Grayscale Ethereum Classic Trust (ETC) (OTCQX: ETCG), Grayscale Ethereum Trust ETF (NYSE Arca: ETHE), Grayscale Ethereum Mini Trust ETF (NYSE Arca: ETH), Grayscale Filecoin Trust (FIL) (OTC Markets: FILG), Grayscale Horizen Trust (ZEN) (OTCQX: HZEN), Grayscale Lido DAO Trust (LDO), Grayscale Litecoin Trust (LTC) (OTCQX: LTCN), Grayscale Livepeer Trust (LPT) (OTCQX: GLIV), Grayscale MakerDao Trust (MKR), Grayscale NEAR Trust (NEAR), Grayscale Optimism Trust (OP), Grayscale Pyth Trust (PYTH), Grayscale Solana Trust (SOL) (OTCQX: GSOL), Grayscale Stacks Trust (STX), Grayscale Stellar Lumens Trust (XLM) (OTCQX: GXLM), Grayscale Sui Trust (SUI), Grayscale XRP Trust, Grayscale Zcash Trust (ZEC) (OTCQX: ZCSH), Grayscale Decentralized AI Fund LLC, Grayscale Decentralized Finance (DeFi) Fund LLC (OTCQB: DEFG), Grayscale Digital Large Cap Fund LLC (OTCQX: GDLC), and Grayscale Smart Contract Platform Ex Ethereum (ETH) Fund LLC (collectively, the "Grayscale Products" or "Trusts and Funds") as of December 31, 2024, each of which is an affiliate of the Company. The Company is responsible for the day-to-day administration of the Trusts and Funds which includes monitoring the overall performance of the Trusts and Funds, preparing and providing annual and quarterly reports on behalf of the Trusts and Funds to investors, and is also responsible for selecting and monitoring the Trusts' and Funds' service providers. In addition, during the year ended December 31, 2024, the Company entered into a key maintenance agreement with Grayscale Bittensor Trust (TAO) and Grayscale Decentralized AI Fund LLC to facilitate the security of the Bittensor (TAO) held by the trust and fund, respectively. As payment for aforementioned services, the Company charges the Trusts and Funds a daily management fee.

The Company wholly owns Grayscale Securities, LLC ("Grayscale Securities"), an introducing broker-dealer, registered with the Securities and Exchange Commission (the "SEC") and a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"), and Grayscale Advisors, LLC ("Grayscale Advisors"), a registered investment advisor with the SEC and the advisor of Grayscale Bitcoin Miners ETF (Ticker: MNRS). Offices for GSO, Grayscale Securities, and Grayscale Advisors are located at 290 Harbor Drive, 4th Floor, Stamford, Connecticut 06902.

Grayscale Dynamic Income Fund LP (the "Partnership") is a Delaware limited partnership that was formed on July 24, 2023 and commenced operations on October 2, 2023. The Partnership was organized for the purpose of optimizing staking rewards from digital assets and generating capital appreciation through investments in digital assets. The Partnership is managed by Grayscale Dynamic Income GP LLC and Grayscale Advisors.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The digital asset custodian of the Company is Coinbase Custody Trust Company, LLC (the "Custodian"), a third-party service provider. The Custodian is responsible for safeguarding the digital assets held by the Company and holding the private key(s) that provide access to the Company's digital wallets and vaults.

**2.** **Summary of Significant Accounting Policies** 

***Basis of Accounting***

These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") as determined by the Financial Accounting Standards Board (the "FASB") within its Accounting Standards Codification ("ASC"). The following is a summary of significant accounting and reporting policies used in preparing the financial statements.

***Principles of Consolidation***

The accompanying consolidated financial statements include the accounts of GSO and its wholly-owned subsidiaries: Grayscale Securities and Grayscale Advisors. All intercompany transactions and balances have been eliminated in consolidation. The Company also evaluates the Grayscale Products and other investment vehicles for potential consolidation under the voting interest entity ("VOE") model and variable interest entity ("VIE") model in accordance with FASB ASC Topic 810, *Consolidation*, and, as a result, consolidated Grayscale Dynamic Income GP, LLC and Grayscale Dynamic Income Fund LP as of December 31, 2024 and 2023. The Company has concluded that it does not have the characteristics of the primary beneficiary or a controlling financial interest and therefore does not consolidate the other Grayscale Products as of December 31, 2024 or 2023.

***Use of Estimates***

The preparation of the consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company's significant estimates and assumptions include the recognition of deferred taxes, the fair value of stock-based awards, and assessing the likelihood of adverse outcomes from pending litigation and regulatory matters. Actual results could differ from those estimates.

***Cash and Cash Equivalents***

Cash and cash equivalents may include cash on hand, cash on trading platforms, cash held at brokers, demand deposits, money market funds and short-term highly liquid investments with original maturities of three months or less. The Company maintains its cash and cash equivalents in bank deposit and brokerage accounts whose balances may exceed federally insured limits. Routinely, cash balances will exceed federally insured levels, however, the Company does not believe there is a significant credit risk with respect to these balances. Regional banks may hold funds for limited periods of time in order to facilitate payment of operating expenses and the Company is exposed to credit risk for such institutions for amounts above federally insured levels during those periods. As of December 31, 2024, restricted cash amounted to approximately $0.2 million, which includes cash deposited in a special bank account for the exclusive benefit of customers related to Grayscale Securities' role as authorized participant for the Grayscale Products. As of December 31, 2023, the Company held no restricted cash.

***Prepaid Expenses and Other Assets***

Prepaid expenses and other assets primarily include prepaid amounts relating to various dues and fees for professional services.

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**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

***Revenue Recognition***

The Company recognizes revenue under ASC 606, *Revenue from Contracts with Customers*. The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation.

The Company recognizes revenue and other income primarily from the following sources:

*Management Fees*

The Company earns a management fee for acting as the sponsor for the Trusts and Funds. The performance obligation is the management of the Trusts and Funds. While the individual activities that comprise the performance obligation can vary day to day, the nature of the overall performance obligation to provide management service is the same and considered by the Company to be a series of services that have the same pattern of transfer to the customer and the same method to measure progress toward satisfaction of the performance obligation. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably as the Trusts and Funds receive and consume the benefits as they are provided by the Company. Consideration for the Company's services is generally in the form of variable consideration because fees are based on agreed-upon management service fee percentages ranging from 0.15% - 2.5% of the Digital Asset Holdings Fee Basis Amount or Net Asset Value ("NAV") of the Trusts and Funds (as defined in the respective Trust Agreements and LLC Agreements). Such fees are affected by changes in the Digital Asset Holdings Fee Basis Amount or NAV of the Trusts and Funds, including market appreciation or depreciation and net inflows or outflows. The Company includes variable consideration in revenue when it is no longer probable of significant reversal, i.e., when the associated uncertainty is resolved. In exchange for management services, the Company receives noncash consideration in the form of units of the digital asset which are typically settled monthly in arrears. The Company measures the estimated fair value of the noncash consideration at contract inception. Changes in the fair value of the noncash consideration due to form of the consideration (changes in the market price of digital assets) are not included in the transaction price and therefore, are not included in revenue. In performing management services, the Company has discretion to involve third parties in providing services to the Trusts and Funds. The Company is deemed to be the principal in the arrangement because the Company controls the promised services before they are transferred to customers, and accordingly presents the revenue gross of related costs.

Digital assets received by the Company as non-cash consideration related to management fees are converted nearly immediately into cash.

*Realized and Unrealized Gains (Losses), Net*

Investment income is derived from the Company's holdings of digital assets and holdings of equity in portfolio companies, and is included in realized and unrealized gains, net, on the Consolidated Statements of Operations. The Company records its investment transactions on a trade date basis. Realized gains and losses on the sales of investments are recognized at the date of sale as the difference between the sale proceeds and the cost basis of the investment. The cost basis of each investment is determined using a specific identification method which allocates cost based on a tranche methodology, in which each group of investments acquired through one purchase is deemed a tranche. Unrealized gains and losses on an investment consist of the change in fair value of an investment for the period.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

***Management Fee Monetization*** 

The Company utilizes derivative contracts to minimize digital asset price risk that may arise in relation to its management fees, which are accrued for in U.S. dollars but are settled by way of receipt of digital asset tokens, and does not apply hedge accounting for such contracts. As noted above, the management fees are accrued daily in U.S. dollar at fair value, however, the Company receives noncash consideration in the form of digital asset tokens. This form of consideration introduces price risk between the daily management fee accrual and the date of receipt of the digital asset tokens from the Trusts and Funds. To minimize this risk, the Company enters into forward contracts periodically throughout the month to deliver a fixed quantity of digital asset tokens at a fixed price to trading counterparties. There were no forward contracts outstanding as of December 31, 2024 or 2023. Any premiums, unrealized and realized gains and losses related to the forward contracts are included in realized and unrealized gains, net on the Consolidated Statements of Operations.

***Digital Assets***

The Company uses fair value as its method of accounting for digital assets held that are within the scope of Accounting Standards Update ("ASU") 2023-08, *Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets*. The fair value for each underlying digital asset is determined by which of the eligible digital asset exchanges is the Company's principal market, as further detailed below. Realized gains and losses are calculated using the specific identification method. The cost of each digital asset is determined using a specific identification method which allocates cost based on a tranche methodology, which each group of digital assets acquired through one purchase being deemed a tranche. Changes in net unrealized gains or losses for these digital assets are included in realized and unrealized gains, net on the Consolidated Statements of Operations.

***Principal Market and Fair Value Determination***

To determine which market is the Company's principal market (or in the absence of a principal market, the most advantageous market) for purposes of determining fair value of individual digital assets, the Company follows ASC 820, *Fair Value Measurement*, ("ASC 820") which outlines the application of fair value accounting. ASC 820 determines fair value to be the price that would be received for digital assets in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820 requires the Company to assume that the digital asset is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact.

The Company may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets, and Exchange Markets, each as defined in the FASB Master Glossary (collectively, "Digital Asset Markets"). In determining which of the eligible Digital Asset Markets is the Company's principal market, the Company reviews these criteria in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•First, the Company reviews a list of Digital Asset Markets that maintain practices and policies designed to comply with anti-money laundering ("AML") and know-your-customer ("KYC") regulations, and non-Digital Asset Exchange Markets that the Company reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Second, the Company sorts the remaining Digital Asset Markets from high to low by market-based volume and level of activity of the digital asset traded on each Digital Asset Market in the trailing twelve months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Third, the Company then reviews pricing fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fourth, the Company then selects a Digital Asset Market as its principal market based on the highest market-based volume, level of activity, and price stability in comparison to the other Digital asset Markets on the list. Based on information reasonably available to the Company, Exchange Markets have the greatest volume and level of activity for the asset. The Company therefore looks to accessible Exchange Markets as opposed to the Brokered Market, Dealer Market, and Principal-to-Principal Markets to determine its principal market.

The Company determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market's trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Company has access to, or (iii) if recent changes to each Digital Asset Market's price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Company's determination of its principal market.

***Fair Value Measurement***

The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company's principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity's own assumptions based on market data and the entity's judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances.

Certain assets of the Company are required to be recorded at fair value either on a recurring or nonrecurring basis. The Company's non-financial assets such as property and equipment are recorded at cost. Fair value adjustments are made to these non-financial assets, on a nonrecurring basis, in the period an impairment charge is recognized.

The carrying amounts reflected in the Consolidated Statements of Financial Condition for cash and cash equivalents, prepaid expenses and other assets, accounts payable and accrued expenses and tax payable approximate fair value due to their short-term nature.

The valuation hierarchy is composed of three levels. The classification within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels within the valuation hierarchy are described below:

Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

instrument is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

***Property and Equipment, net***

Property and equipment are stated at cost, less accumulated depreciation. Maintenance and repairs are charged to expense when incurred. Additions and improvements that extend the economic useful life of the asset are capitalized and depreciated over the remaining useful lives of the assets. The cost and accumulated depreciation of assets sold or retired are removed from the respective accounts, and any resulting gain or loss is reflected in current earnings. Depreciation is provided using the straight-line method in amounts considered to be sufficient to amortize the cost of the assets to operations over their estimated useful lives as follows:

---

| | |
|:---|:---|
| **Asset** | **Estimated Useful Life** |
| Computer hardware | 3 years |
| Computer software | 3 years |
| Furniture and fixtures | 7 years |

---

Property and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows derived from such assets. Factors that the Company considers in deciding when to perform an impairment review include significant changes in the Company's forecasted projections for the asset or asset group for reasons including, but not limited to, significant changes, or planned changes in the Company's use of the assets and significant negative industry or economic trends. The impairment test is based on a comparison of the undiscounted cash flows expected to be generated from the use of the asset group. If impairment is indicated, the asset is written down by the amount by which the carrying value of the asset exceeds the related fair value of the asset with the related impairment charge recognized within the Consolidated Statements of Operations (see Note 5).

***Leases*** 

The Company accounts for its lease obligations in accordance with FASB ASC Topic 842, *Leases* ("ASC 842"), which requires the recognition of both (i) a lease liability equal to the present value of the remaining lease payments and (ii) an offsetting right-of-use ("ROU") asset. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The lease terms may include options to extend or terminate the lease. These options to extend or terminate are assessed on a lease-by-lease basis, and the ROU assets and lease liabilities are adjusted when it is reasonably certain that an option will be exercised. If a lease arrangement does not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease expense associated with leases that have a term of 12 months or less as of the commencement date are recognized as a component of general and administrative expenses on a straight-line basis over the lease term.

***Stock-Based Compensation***

The Company recognizes stock-based compensation expense for all options and stock appreciation rights ("SARs"), whether expected to be settled in stock or cash, within the scope of ASC 718, *Stock Compensation*, that are expected to vest. The awards reference the shares of DCG and not the Company. Awards expected to be settled in cash are recorded as a liability on the books and records of DCG. Stock-based compensation expense is measured at the date of grant, based on the fair value of the award, and is recognized using the straight-line method over the employee's requisite service period within employee compensation and benefits on the Consolidated Statements of

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**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Operations. The awards are accounted for as employee awards under ASC 718. The impact of remeasuring the awards each reporting period is reflected in the Company's financial statements, as an offset to capital distribution to DCG (i.e., compensation cost with an offsetting entry to capital distribution). The Company does not record a liability related to employee awards given the liability-classified awards are reflected as a liability by DCG and are remeasured at intrinsic value under the practical expedient provided by ASU 2016-09, *Compensation–Stock Compensation* ("ASU 2016-09").

The Company accounts for SARs that provide for cash settlement in accordance with ASC 718. Compensation cost is recognized for SARs using a straight-line method over the requisite period of the award, which is generally the vesting term, and is included in stock-based compensation on the Consolidated Statements of Operations. SARs are accounted for as employee awards under ASC 718. The impact of remeasuring SARs each reporting period is reflected in the Company's financial statements, as an offset to capital distribution to DCG (i.e., compensation cost with an offsetting entry to capital distribution). The Company does not record a liability related to SARs given the liability-classified awards are reflected as a liability by DCG and are remeasured at intrinsic value under the practical expedient provided by ASU 2016-09.

***Marketing***

Marketing expenses primarily include costs related to branding, advertising and marketing programs. Marketing and advertising costs are expensed as incurred.

***Income Taxes***

The Company is included in the consolidated federal income tax return, as well as various combined state and local income tax returns, with DCG. The Company and DCG have a tax-sharing agreement, pursuant to which the tax attributes are settled as utilized by DCG. The Company's policy is to reflect the income tax expense or benefit and footnote on a separate return basis.

The Company recognizes deferred income tax assets and liabilities for the expected future tax consequences of events on the financial statements in accordance with FASB ASC Topic 740, *Income Taxes*. Under ASC 740, deferred income tax assets and liabilities are based on the differences between book value of assets and liabilities on the balance sheet and tax bases of assets and liabilities, by applying the enacted statutory tax rates in effect for the years when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to an amount that, in the opinion of Management, is "more-likely-than-not" to be realized.

Under ASC 740-10-25, guidance on accounting for uncertainty in income tax positions describes how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. The guidance requires the Company to determine whether a tax position is "more-likely-than-not" to be sustained upon examination, including the resolution of any related appeals or litigation process, based on the technical merits of the position. For tax positions meeting the "more-likely-than-not-threshold", the tax benefit recognized in the financial statements is the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the relevant taxing authorities.

The Company's policy is to accrue interest and penalties associated with unrecognized tax benefits, if applicable, as a component of provision for income taxes in the Consolidated Statements of Operations, and the corresponding liability in tax payable, in the Consolidated Statements of Financial Condition.

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**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

***Recent Accounting Pronouncements***

*Accounting Pronouncements Recently Adopted*

In this reporting period, the Company adopted FASB ASU 2023-07, *Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures* ("ASU 2023-07"). Adoption of the new standard impacted financial statement disclosures only and did not affect the Company's financial position or the results of its operations. Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker ("CODM") in deciding how to allocate resources and to assess performance. The Company's Chief Executive Officer and Chief Financial Officer are the Company's CODM. The CODM monitors the Company's operations, reviews the financial results, and manages expenses incurred on a consolidated basis. Accordingly, the Company represents a single operating segment. The CODM assesses performance of the reportable segment and decides how to allocate capital and resources based on consolidated net income that is reported on the Consolidated Statements of Operations as Net Income. In addition, segment assets are reflected on the accompanying Consolidated Statements of Financial Condition and significant segment expenses are included on the accompanying Consolidated Statements of Operations.

On January 30, 2025, the SEC issued Staff Accounting Bulletin ("SAB") No. 122 ("SAB 122"). SAB 122 rescinds the previously issued interpretative guidance included within SAB 121 with respect to accounting for obligations to safeguard crypto assets that an entity holds for its customers. SAB 122 directs an entity to apply FASB ASC ("ASC") 450-20, *Loss Contingencies*, to determine whether an entity has a liability related to risk of loss from an obligation to safeguard crypto assets for customers. The Company has adopted SAB 122 as of December 31, 2024 on a retrospective basis. As a result of the adoption of SAB 122, the Company has not recognized a safeguarding customer crypto asset or safeguarding customer crypto liability related to its role as key maintainer for Grayscale Bittensor Trust (TAO) and Grayscale Decentralized AI Fund LLC.

In December 2023, the FASB issued ASU 2023-08, *Intangibles—Goodwill and Other—Crypto Assets: Accounting for and Disclosure of Crypto Assets* ("ASU 2023-08"). Under this new standard, entities holding digital assets that qualify as "crypto assets" must measure the digital assets at fair value upon initial recognition and at the end of each reporting period, with changes in fair value reported in realized and unrealized gains (losses), net in the Consolidated Statements of Operations. ASU 2023-08 is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, for all entities. Early adoption is also permitted. The Company adopted ASU 2023-08 effective January 1, 2023. The adoption of this standard did not have a material impact on the Company's consolidated financial statements.

*Accounting Pronouncements Not Yet Adopted*

In December 2023, the FASB issued ASU 2023-09, *Improvements to Income Tax Disclosures* ("ASU 2023-09"), to provide more detailed tax disclosure requirements. The guidance requires entities to disclose qualitative information about significant differences between the statutory tax rate and effective tax rate, income taxes paid, and disaggregate information by foreign and domestic income from continuing operations. The disclosure requirements will be applied on a prospective basis, with the option to apply it retrospectively. The effective date for ASU 2023-09 is for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Expense Disaggregation Disclosures* ("ASU 2024-03"). ASU 2024-03 amends FASB ASC Topic 220, *Comprehensive Income*, to expand income statement expense disclosures and require disclosure in the notes to the financial statements of specified information about certain costs and expenses. The effective date for ASU 2024-03 is for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on the Consolidated Financial Statements.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**3.** **Digital Assets**

The following table presents digital assets held by the Company:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(Amounts in thousands, except unit amounts)* | **Units** | **Cost Basis** | **Fair Value** |
| Ethereum | 101 | $234 | $336 |
| Bittensor | 5 | 2 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total digital assets |  | $236 | $338 |
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
| *(Amounts in thousands, except unit amounts)* | **Units** | **Cost Basis** | **Fair Value** |
| Ethereum | 67 | $116 | $154 |
| Stellar | 154660 | 19 | 20 |
| Decentraland | 37573 | 19 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total digital assets |  | $154 | $194 |

---

The following table presents information about the Company's digital assets:

---

| | |
|:---|:---|
| *(Amounts in thousands)* | **Fair Value** |
| **Balance at January 1, 2023** | $31705 |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital assets received for management fees | 512707 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of digital assets | (300075) |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital asset distributions to DCG | (221787) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid to DCG in digital assets | (39607) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gain on sale of digital assets, net | 17204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on digital assets, net | 47 |
| **Balance at December 31, 2023** | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital assets received for management fees | 506078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of digital assets | (507672) |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue from staking | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gain on sale of digital assets, net | 1673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on digital assets, net | 61 |
| **Balance at December 31, 2024** | $338 |

---

Realized gains and losses are calculated using the specific identification method. For the years ended December 31, 2024 and 2023, the Company recorded net realized gains of $1.7 million and $17.2 million, respectively, from the sale of digital assets which is included in realized and unrealized gains, net on the Consolidated Statements of Operations.

**4.** **Fair Value Measurements**

The following table presents information about the Company's assets measured at fair value as of the Consolidated Statements of Financial Condition date:

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Fair Value Measurement Using** | **Fair Value Measurement Using** | **Fair Value Measurement Using** | **Fair Value Measurement Using** |
| *(Amounts in thousands)* | **Total** | **Level 1** | **Level 2** | **Level 3** | **Net Asset Value** |
| **December 31, 2024** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in money market funds<sup>(1)</sup> | $71442 | $71442 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity investments | 1876 |  |  | 1876 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 338 | 336 | 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in digital asset trusts and<br> funds<sup>(2)</sup> | 1310 | 1061 |  |  | 249 |
|  | $74966 | $72839 | $2 | $1876 | $249 |
| **December 31, 2023** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in money market funds<sup>(1)</sup> | $57436 | $57436 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity investments | 1862 |  |  | 1862 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 194 | 194 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in digital asset trusts and<br> funds<sup>(2)</sup> | 20 |  |  |  | 20 |
|  | $59512 | $57630 | $— | $1862 | $20 |

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(1)Included in cash and cash equivalents in the Consolidated Statements of Financial Condition.

(2)Investments not yet quoted on a secondary market are recorded using net asset value and are shown for purposes of reconciling to the Consolidated Statements of Financial Condition.

Equity investments classified as Level 3 primarily represent an investment in an asset manager made in 2021 for which limited distributions have been received to date and no material events or transactions have occurred that would require an adjustment to the carrying value. There were no transfers of financial assets or liabilities to or from Level 3 during the years ended December 31, 2024 and 2023.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**5.** **Property and Equipment, net**

Property and equipment, net consists of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| *(Amounts in thousands)* | **2024** | **2023** |
| Computer hardware | $566 | $546 |
| Computer software | 1530 | 1314 |
| Furniture and fixtures | 120 | 126 |
| Total property and equipment | 2216 | 1986 |
| Accumulated depreciation | (855) | (469) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment, net | $1361 | $1517 |

---

Depreciation expense was $0.7 million and $0.3 million for the years ended December 31, 2024 and 2023, respectively, and is included in general, administrative, and other expense on the Consolidated Statements of Operations. During the year ended December 31, 2024, the Company did not record any impairments of property and equipment. During the year ended December 31, 2023, the Company recorded impairments of property and equipment in the amount of less than $0.1 million, and is included in general, administrative, and other expense on the Consolidated Statement of Operations.

**6.** **Leases** 

Effective January 1, 2024, the Company has entered into an operating lease with DCG for its corporate headquarters office facilities. The lease has escalating rent payments through the expiration date of January 31, 2034 with the option to terminate the lease beginning on January 1, 2027. The Company was not party to any lease agreements for the year ended December 31, 2023.

The following table summarizes the Company's lease cost included in general, administrative and other expense in the Consolidated Statements of Operations for the year ended December 31, 2024:

---

| | |
|:---|:---|
|  | **Year ended December 31,** |
| *(Amounts in thousands)* | **2024** |
| Operating lease cost | $2678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease cost | $2678 |

---

Supplemental information related to operating leases is summarized below:

---

| | |
|:---|:---|
|  | **Year ended December 31,** |
| *(Amounts in thousands)* | **2024** |
| Operating cash flows for operating leases | $2071 |
| Right-of-use assets obtained in exchange for lease obligations | $16010 |

---

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The following table presents information regarding the Company's operating lease:

---

| | |
|:---|:---|
| *(Amounts in thousands)* | **As of<br>December 31,<br>2024** |
| **Assets** |  |
| Right-of-use asset, net | $13981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease assets | $13981 |
| **Liabilities** |  |
| Operating lease liability, current portion | $1742 |
| Operating lease liability, net of current portion | 12847 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease liability | $14589 |
|  | **As of<br>December 31,<br>2024** |
| Weighted average remaining lease term (in years) - operating leases | 6.00 |
| Weighted average discount rate - operating leases | 4.23% |

---

The following table summarizes the maturities of lease liabilities at December 31, 2024:

---

| | |
|:---|:---|
| *(Amounts in thousands)* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Fiscal Year ending December 31,** | **Operating Leases** |
| &nbsp;&nbsp;&nbsp;&nbsp;2025 | $2325 |
| &nbsp;&nbsp;&nbsp;&nbsp;2026 | 2507 |
| &nbsp;&nbsp;&nbsp;&nbsp;2027 | 2689 |
| &nbsp;&nbsp;&nbsp;&nbsp;2028 | 2870 |
| &nbsp;&nbsp;&nbsp;&nbsp;2029 | 3052 |
| &nbsp;&nbsp;&nbsp;&nbsp;Thereafter | 3234 |
| Total minimum lease payments | $16677 |
| Less effects of discounting | (2088) |
| Total operating lease liability | $14589 |

---

**7.** **Accounts Payable and Accrued Expenses**

Accounts payable and accrued expenses consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| *(Amounts in thousands)* | **2024** | **2023** |
| Accrued bonus | $12954 | $9000 |
| Accounts payable | 4951 | 2040 |
| Other accrued expenses | 9871 | 7625 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $27776 | $18665 |

---

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**8.** **Member's Equity**

As of December 31, 2024, pursuant to the terms of the Limited Liability Company Agreement (the "LLC Agreement") in effect at the time, the business and affairs of the Company were managed and operated by DCG, which controlled the Company's sole member. On January 1, 2025, GSI completed an internal corporate reorganization following which the Company is managed by its sole managing member, GSO Intermediate Holdings Corporation, which is an indirectly wholly owned subsidiary of DCG. Please refer to Note 18, *Subsequent Events*, for more information.

**9.** **Concentrations**

The following table presents information about the Company's concentration of revenues earned as sponsor or manager of the Grayscale Products:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **Grayscale Product** | **2024** | **2023** |
| Grayscale Bitcoin Trust ETF | 57% | 70% |
| Grayscale Ethereum Trust ETF | 36% | 26% |
| Grayscale Digital Large Cap Fund, LLC | 3% | 1% |
| Grayscale Ethereum Classic Trust (ETC) | 1% | 1% |
| Grayscale Litecoin Trust (LTC) | 1% | 1% |

---

The following table presents information about the Company's concentration of digital asset holdings:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| **Digital Asset** | **2024** | **2023** |
| Ethereum | 99% | 80% |
| Bittensor | 1% | — % |
| Stellar | — % | 10% |
| Decentraland | — % | 10% |

---

**10.** **Stock-based Compensation** 

***Digital Currency Group, Inc. 2016 Stock Plan***

The 2016 Stock Plan, as amended, (the "2016 Plan") provides for the grant of stock options and restricted stock to employees, directors, and consultants of DCG or certain subsidiary corporations. As of December 31, 2024 and 2023, the maximum number of shares of common stock that may be issued over the term of the 2016 Plan shall not exceed 7,438,100 shares. Accordingly, DCG has reserved a sufficient number of shares of common stock to permit the exercise of options in accordance with the terms of the 2016 Plan. DCG's Board of Directors is responsible for administration of the 2016 Plan and has the sole discretion to determine which grantees will be granted awards and the terms and conditions of the awards granted. Option awards are generally granted with an exercise price equal to the market price of DCG's stock at the date of grant and generally vests 25% on the one-year anniversary from the grant date with the remaining 75% vesting in equal quarterly installments over the following three years and have 10-year contractual terms.

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The following table summarizes the activities related to stock options granted by DCG under the 2016 Plan to the Company's employees:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of Options<br>(in Shares)** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Term** |
| Outstanding, January 1, 2023 | 89024 | $117.97 | 7.90 |
| &nbsp;&nbsp;Granted | 107411 | 27.93 |  |
| &nbsp;&nbsp;Exercised |  |  |  |
| &nbsp;&nbsp;Forfeited or cancelled |  |  |  |
| Outstanding, December 31, 2023 | 196435 | $68.73 | 8.73 |
| &nbsp;&nbsp;Granted | 21748 | 50.92 |  |
| &nbsp;&nbsp;Exercised | (91121) | 27.93 |  |
| &nbsp;&nbsp;Forfeited or cancelled | (48976) | 62.39 |  |
| Outstanding, December 31, 2024 | 78086 | $115.37 | 6.84 |
| Exercisable, December 31, 2024 | 75796 | $114.73 | 6.85 |

---

During the years ended December 31, 2024 and 2023, the Company recorded stock-based compensation expense of $1.1 million and $1.5 million, respectively, related to stock options under the 2016 Plan which is included in stock-based compensation expense on the Consolidated Statements of Operations. During the year ended December 31, 2024, the Company modified certain options held by a former key employee to accelerate one year of additional vesting on such awards, resulting in the recognition of incremental stock-based compensation expense of $0.8 million. As of December 31, 2024, no unrecognized compensation expense related to non-vested awards is expected to be recognized over the weighted average remaining vesting period of 1.0 year, which is dependent on the subsequent intrinsic value of the awards.

***Digital Currency Group, Inc. Stock Appreciation Rights Plan***

The Stock Appreciation Rights Plan (the "SARs Plan") provides for the grant of stock appreciation rights to employees, directors, and key persons of DCG and any subsidiary. The SARs Plan provides the employees with the right to receive, at the date the rights are exercised, cash settlements in the amount equal to the fair value of the market appreciation of the common stock since the grant date of the rights. The SARs typically vest 25% on the one-year anniversary from the grant date with the remaining 75% vesting in equal quarterly installments over the following three years. DCG's Board of Directors is responsible for administration of the SARs Plan and has the sole discretion to determine which grantees will be granted awards and the terms and conditions of the awards granted.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

The following table summarizes the activities related to SARs granted by DCG under the SARs Plan to the Company's employees:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of SARs <br>(in Shares)** | **Weighted Average Exercise Price** | **Weighted Average Remaining Contractual Term** |
| Outstanding, January 1, 2023 | 345823 | $22.90 | 2.93 |
| &nbsp;&nbsp;Granted | 248102 | 27.93 |  |
| &nbsp;&nbsp;Exercised |  |  |  |
| &nbsp;&nbsp;Forfeited or cancelled | (2575) | 136.52 |  |
| Outstanding, December 31, 2023 | 591350 | $24.52 | 5.66 |
| &nbsp;&nbsp;Granted | 19691 | 27.93 |  |
| &nbsp;&nbsp;Exercised | (313714) | 12.85 |  |
| &nbsp;&nbsp;Forfeited or cancelled | (8087) | 59.23 |  |
| Outstanding, December 31, 2024 | 289240 | $36.44 | 6.37 |
| Exercisable, December 31, 2024 | 178086 | $37.44 | 5.18 |

---

During the years ended December 31, 2024 and 2023, the Company recorded share-based compensation expense of $1.5 million and $11.2 million, respectively, related to SARs which is included in stock-based compensation expense on the Consolidated Statements of Operations. As of December 31, 2024, $2.2 million of unrecognized compensation expense related to non-vested awards is expected to be recognized over the weighted average remaining vesting period of 1.6 years, which is dependent on the subsequent intrinsic value of the awards.

**11.** **Employee Benefit Plans**

The Company has a 401(k) savings plan covering all eligible employees in which the Company can make discretionary contributions from its profits. During the years ended December 31, 2024 and 2023, the expense recognized in connection with this plan was approximately $0.9 million and $0.5 million, respectively, which is included in employee compensation and benefits expense on the Consolidated Statements of Operations.

**12.** **Income Taxes** 

The components of the income tax provision for the years ended December 31, 2024 and 2023, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
| *(Amounts in thousands)* | **2024** | **2023** |
| **Current income tax expense (benefit):** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | $72876 | $85075 |
| &nbsp;&nbsp;&nbsp;&nbsp;State and other | 13950 | 20892 |
|  | $86826 | $105967 |
| **Deferred income tax expense (benefit):** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal | 2181 | 1561 |
| &nbsp;&nbsp;&nbsp;&nbsp;State and other | 572 | 105 |
|  | 2753 | 1666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income tax expense | $89579 | $107633 |

---

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Income tax expense for the years ended December 31, 2024 and 2023, differs from the amount calculated by applying the federal statutory rate of 21% to pretax income as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
| *(Amounts in thousands)* | **2024** | **2024** |
| Tax expense at federal statutory rate | $78063 | 21.0% |
| Increase (decrease) in tax expense at federal statutory rate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;State and local income taxes, net of federal tax | 11352 | 3.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Permanent items | 240 | 0.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;True-up and rate change | (76) | (0.0)% |
| Effective tax rate | $89579 | 24.1% |
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2023** | **2023** |
| *(Amounts in thousands)* | **Amount** | **Rate** |
| Tax expense at federal statutory rate | $90842 | 21.0% |
| Increase (decrease) in tax expense at federal statutory rate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;State and local income taxes, net of federal tax | 16754 | 3.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Permanent items | 203 | 0.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;True-up and rate change | (166) | (0.1)% |
| Effective tax rate | $107633 | 24.9% |

---

Temporary differences accumulate in deferred income tax balances and are recorded as deferred tax assets and deferred tax liabilities. On December 31, 2024 and 2023, the components of deferred tax assets and liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
| *(Amounts in thousands)* | **2024** | **2023** |
| **Deferred tax assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Compensation and benefits | $1213 | $4455 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bad debt | 300 | 216 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 313 | 40 |
|  | $1826 | $4711 |
| **Deferred tax liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | (291) | (280) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains | (116) | (103) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (632) | (968) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | (180) |  |
|  | (1219) | (1351) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax asset | $607 | $3360 |

---

ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements and prescribes a recognition threshold of "more-likely-than-not" to be sustained upon examination. The Company has not identified any uncertain tax positions that warrant tax reserves based on the "more-likely-than-not threshold."

The Company does not have any unrecognized tax benefits to significantly change in the next 12 months.

------

**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Management has assessed the positive and negative evidence to determine whether a valuation allowance against the existing gross deferred tax assets is required. Since inception, the Company has generated significant taxable income in each year and projects that sufficient future taxable income will be generated. After consideration of the evidence applicable to the Company, Management believes that it is more-likely-than-not that the gross deferred tax asset will be realized in the future. As a result, at December 31, 2024 and 2023, the Company did not have a valuation allowance recorded against its deferred tax asset.

The Company is included in the consolidated federal income tax return, as well as various combined state and local income tax returns, with DCG. The Company and DCG have a tax-sharing agreement, pursuant to which the tax attributes are settled as utilized by DCG.

The Company is subject to U.S. federal income tax and state and local income tax in multiple jurisdictions. As of December 31, 2024, the earliest year the Company remains subject to examination by the Internal Revenue Service is for the tax year ending December 31, 2021. The earliest year the Company remains subject to examination by state and local tax authorities is the tax year ending December 31, 2018. The combined New York State City return is currently under audit for tax years ending December 31, 2018 to December 31, 2022.

**13.** **Credit Agreement**

On May 15, 2023, the Company entered into an amended Coinbase Post-Trade Financing Agreement with Coinbase Credit, Inc. (the "Credit Agreement") providing for a $45.0 million post-trade line of credit which may be drawn upon at any time. The Credit Agreement represents an extension of trading credits used in connection with intraday trading of digital assets on the Custodian's trading platform. Trading credits are settled by way of delivery of the applicable digital assets traded and are typically settled within one business day of the trade order. Borrowings under the Credit Agreement bear interest at a fixed rate of 0.04% simple interest per calendar day to be paid on the basis of the aggregate maximum amount drawn by the Company in the same type of digital asset for which the trade-trade line of credit was utilized.

As of December 31, 2024 and 2023, there were no outstanding amounts drawn from the Credit Agreement.

**14.** **Commitments and Contingencies** 

From time to time, the Company is involved in legal matters relating to claims arising in the ordinary course of business. There are currently no such matters pending that the Company believes could have a material adverse effect on its consolidated results of operations, cash flows or financial position. In addition, in the normal course of business, the Company may enter into contracts with service providers that contain general indemnification clauses. The Company has had no claims or payments pursuant to these agreements, and it believes the likelihood of a claim being made is remote. The Company's estimate of the value of such guarantees is de minimis, and therefore, no accrual has been made in the consolidated financial statements.

**15.** **Risk and Uncertainties**

The Company's operating activities expose it to various types of risk that are associated with the sponsorship and management of the Grayscale Products, the markets in which the Grayscale Products operate, as well as the risks associated with digital assets as the consideration received for providing such services is denominated in digital assets. The significant types of risks to which the Company is exposed include, but are not limited to market risk, industry risk, regulatory risk, liquidity risk, concentration risk, credit risk, counterparty risk, and digital asset risk. Certain aspects of those risks include, but are not limited to, the risk of loss related to value of accrued receivables from the Grayscale Products and the ultimate value of the digital assets delivered to the Company, and the risk that the Grayscale Products for which revenues are highly concentrated, and their underlying digital assets will decrease in value such that the Company becomes unprofitable or subject to regulatory changes that may adversely affect the

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

Company. The digital asset industry is currently largely unregulated, highly speculative, and volatile. The price of digital assets has a limited history. During such history, digital asset prices have been volatile and subject to influence by many factors including the levels of liquidity. If digital asset markets continue to experience significant price fluctuations, the Company may experience substantial losses. Several factors may affect the price of digital assets, including, but not limited to, global supply and demand, and competition from other forms of digital asset or payment services. The Company plans to mitigate these risks through continued diversification of its investments and operating activities.

Requests to list the shares of other funds on national securities exchanges have been submitted to the SEC. On January 10, 2024 and May 23, 2024, the SEC approved NYSE Arca's 19b-4 application to list the shares of Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF, respectively, on NYSE Arca as exchange-traded products. However, even though NYSE Arca's requests with respect to Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF were approved, there is no guarantee that a similar application to list shares of the other Grayscale Products, on NYSE Arca or another national securities exchange, would also be approved.

Grayscale Bitcoin Trust ETF and the Company face competition with respect to the creation of competing exchange-traded spot Bitcoin products, among other digital asset vehicles, several of which have applications pending before the SEC or have already received SEC approval. Whether Grayscale Bitcoin Trust ETF, or any other Grayscale Product with a similar application to list shares on NYSE Arca as an exchange-traded product, is successful in maintaining its scale and achieving its intended competitive position may be impacted by a range of factors, including Grayscale Product's timing in entering the market relative to competing spot Bitcoin or other digital asset exchange traded products and its fee structure relative to those competing products. Competitors of Grayscale Bitcoin Trust ETF, Grayscale Ethereum Trust ETF or other Grayscale Products may also charge a substantially lower fee than the sponsor's fee in an effort to achieve initial market acceptance and scale, which could cause investors to favor such competing products over Grayscale Bitcoin Trust ETF, Grayscale Ethereum Trust ETF or other Grayscale Products. If Grayscale Bitcoin Trust ETF does not maintain sufficient scale due to competition, the Company may have difficulty raising sufficient revenue to cover the costs associated with maintaining Grayscale Bitcoin Trust ETF or other Grayscale Products.

**16.** **Related Party Transactions**

In accordance with the Trusts' and Funds' Trust Agreements and LLC Agreements, respectively, the Company earns a daily management fee ranging from 0.15% - 2.5% of the aggregate value of the applicable Trust's or Fund's assets, less liabilities. For the years ended December 31, 2024 and 2023, the Company earned $506.1 million and $512.7 million, respectively, in management fees related to the Trusts and Funds. The revenue is recorded in the management fees, related parties on the Consolidated Statements of Operations. A portion of the management fees was derived from the shares held by DCG, Genesis Global Trading, Inc. and Genesis Global Capital, LLC ("Genesis"), wholly owned subsidiaries of DCG, and certain affiliates of the Company in the Trusts and Funds.

The Company may lend and receive digital asset loans from affiliate companies and generate revenue from interest income earned on such loans. The Company accrues interest income on digital asset loans in the same token in which the loan was issued. The Company did not lend any digital assets during the year ended December 31, 2024. The Company had approximately $0.9 million of digital asset loans to Genesis outstanding as of December 31, 2023. The Company assessed the likelihood of recognizing benefit from certain digital asset loans due from its affiliates and determined recognition of a reserve on all amounts due from Genesis to be appropriate. The Company recognized a reserve in the amount of approximately $0.9 million during the year ended December 31, 2023, which is included in provision for related party receivables on the Consolidated Statement of Operations. The Company will continue to assess the applicability of the reserve on these receivables.

On July 23, 2024, Grayscale Ethereum Trust ETF completed its pro rata distribution of 310,158,500 shares of Grayscale Ethereum Mini Trust ETF (the "ETH Trust") to shareholders of Grayscale Ethereum Trust ETF as of July

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

18, 2024. In connection therewith, on July 23, 2024, Grayscale Ethereum Trust ETF contributed to the ETH Trust an amount of Ether equal to 10% of the total Ether held by Grayscale Ethereum Trust ETF as of July 18, 2024, equal to 292,262.98913350 Ether, as consideration and in exchange for the issuance of shares of the ETH Trust. The ETH Trust began trading on NYSE Arca on July 31, 2024 under the trading symbol "ETH." The Company acts as the sponsor of the ETH Trust.

The Company, from time to time, may temporarily waive all or a portion of the management fee of the Grayscale Products in its discretion for stated periods of time. Effective July 23, 2024, the Company waived a portion of the ETH Trust sponsor's fee for the first six months, so that the fee was 0% of the NAV of the ETH Trust for the first $2.0 billion of the ETH Trust's assets. As of December 31, 2024, ETH Trust's assets did not exceed $2.0 billion and no sponsor's fee for ETH Trust had been incurred. However, after the six-month waiver period expired on January 23, 2025, the sponsor's fee for ETH Trust is now 0.15%.

On July 31, 2024, Grayscale Bitcoin Trust ETF completed its pro rata distribution of 303,690,100 shares of Grayscale Bitcoin Mini Trust ETF (the "BTC Trust") to shareholders of Grayscale Bitcoin Trust ETF as of July 30, 2024. In connection therewith, on July 31, 2024, Grayscale Bitcoin Trust ETF contributed to the BTC Trust an amount of Bitcoin equal to 10% of the total Bitcoin held by Grayscale Bitcoin Trust ETF as of the July 31, 2024, equal to 26,935.83753443 Bitcoin, as consideration and in exchange for the issuance of shares of the BTC Trust. The BTC Trust began trading on NYSE Arca on July 31, 2024 under the trading symbol "BTC." The Company acts as the sponsor of the BTC Trust and earns a daily management fee of 0.15% of the aggregate value of the BTC Trust's assets, less liabilities.

The Company has made, and may continue to make, distributions of excess cash and digital assets to DCG. During the year ended December 31, 2024, the Company distributed $289.3 million in cash to DCG. Additionally, during the year ended December 31, 2024, the Company paid $94.9 million to DCG as payment for income taxes. During the year ended December 31, 2023, the Company distributed $266.6 million to DCG, of which $44.8 million was distributed in cash and $221.8 million was distributed in digital assets. Additionally, during the year ended December 31, 2023, $103.9 million of the total distribution to DCG represented payment for income taxes, which consisted of $64.3 million in cash and $39.6 million in digital assets.

The Company recognizes stock-based compensation expense for all options and other arrangements. The awards reference the shares of DCG and not the Company. Awards expected to be settled in cash are recorded as a liability on the books and records of DCG.

DCG also provides certain shared services to the Company including, but not limited to, occupancy, food services, maintenance and security. In addition, effective January 1, 2024, the Company signed an operating lease with DCG for its corporate headquarters office facilities in Stamford, CT. The term of the operating lease agreement commenced on January 1, 2024 and continues until January 31, 2034, unless terminated sooner by either party in accordance with the lease agreement.

**17.** **Legal Proceedings**

The Company and Grayscale Bitcoin Trust ETF, are currently parties to the following legal proceeding:

On January 30, 2023, Osprey Funds, LLC ("Osprey") filed a suit in Connecticut Superior Court against the Company alleging that statements the Company made in its advertising and promotion of Grayscale Bitcoin Trust ETF violated the Connecticut Unfair Trade Practices Act ("CUPTA"), and seeking statutory damages and injunctive relief. On April 17, 2023, the Company filed a motion to dismiss the complaint and, following briefing, a hearing on the motion to dismiss was held on June 26, 2023. On October 23, 2023, the Court denied the Company's motion to dismiss. On November 6, 2023, the Company filed a motion for reargument of the Court'sorder denying the Company's motion to dismiss. On November 16, 2023, Osprey filed an opposition to the Company's motion for

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

reargument, and on November 30, 2023, the Company filed a reply in further support of its motion for reargument. On March 11, 2024, the Court denied the Company's motion for reargument. On March 25, 2024, the Company filed an application for interlocutory appeal. On March 28, 2024, Osprey filed an opposition to the Company's application for interlocutory appeal. On April 1, 2024, the Court denied the Company's application for interlocutory appeal. On April 10, 2024, Osprey filed a motion to amend the complaint. The amended complaint went into effect on April 25, 2024. A scheduling order was entered by the Court with trial scheduled to begin on July 15, 2025. On July 31, 2024, the Company filed a motion to strike the amended complaint. On August 30, 2024, Osprey filed an opposition to the Company's motion to strike the amended complaint. On October 11, 2024, the Court denied the Company's motion to strike. On November 22, 2024, the Company filed a motion for summary judgment on the grounds that CUTPA does not apply to practices undertaken in connection with the purchase and sale of securities, and the Court granted the Company's motion for summary judgment on February 7, 2025. On February 10, 2025, Osprey filed a motion for reargument. The Company and the Grayscale Bitcoin Trust ETF believe that judgment was properly granted in their favor and intend to vigorously defend against any attempts to overturn the judgment.

As of the date of this report, the Company does not expect the foregoing proceeding to have a material adverse effect on the Company's business, financial condition, or results of operations.

The Company may be subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business.

**18.** **Subsequent Events**

The Company has evaluated subsequent events through July 8, 2025, the date these consolidated financial statements were available to be issued.

On January 1, 2025, Grayscale Investments, LLC ("GSI") consummated an internal corporate reorganization (the "Reorganization"). On January 1, 2025, GSI entered into an agreement and plan of merger with GSO and DCG Grayscale Holdco, LLC ("DGH"), a direct wholly-owned subsidiary of DCG, pursuant to which GSI merged with and into GSO, with GSO surviving the merger as a wholly-owned subsidiary of DGH (the "Merger"). As a result of the Merger, GSO succeeded by operation of law to all the rights, powers, privileges and franchises and became subject to all of the obligations, liabilities, restrictions and disabilities of GSI, including with respect to the Sponsor Contracts (as defined below), all as provided under the Delaware Limited Liability Company Act. Effective January 1, 2025, GSS and GSA are direct wholly-owned subsidiaries of GSO. In addition, on January 1, 2025, GSO Intermediate Holding Corporation ("GSOIH"), which is a direct wholly-owned subsidiary of DGH, became the sole managing member of GSO.

In connection with the Reorganization, on January 1, 2025, and promptly following the effectiveness of the Merger, GSO assigned certain contracts pertaining to its role as sponsor and manager of the Grayscale Products (such contracts, the "Sponsor Contracts") to GSIS, whereby GSIS assumed all of the rights and obligations of GSO under the Sponsor Contracts. Other than the assumption of the Sponsor Contracts by GSIS, the Reorganization does not alter the rights or obligations under any of the Sponsor Contracts.

In connection with the Reorganization, on January 1, 2025, and promptly following the effectiveness of the Merger, GSO and GSIS executed a Certificate of Admission, pursuant to which GSIS was admitted as an additional sponsor or manager of the Grayscale Products. On January 3, 2025, GSO voluntarily withdrew as a sponsor or manager of the Grayscale Products, and, effective May 3, 2025, GSIS shall be the sole remaining sponsor or manager of the Grayscale Products.

The Reorganization did not have a material impact on the operations of the Company.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

**GRAYSCALE OPERATING, LLC AND SUBSIDIARIES**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

In March 2025, GSO, as sponsor and manager of Grayscale Bittensor Trust (TAO) and Grayscale Decentralized AI Fund LLC, engaged third-party service providers to custody the Bittensor ("TAO") of trust and fund, respectively. The custodians are responsible for safeguarding the TAO held by the trust and fund, and holding the private key(s) that provide access to the trust and fund's digital wallets and vaults. As a result, the Company no longer serves as key maintainer of Grayscale Bittensor (TAO) of Grayscale Bittensor Trust (TAO) and Grayscale Decentralized AI Fund LLC.

On February 10, 2025, Osprey filed a motion for reargument and the Court denied Osprey's motion for reargument on March 19, 2025. On March 31, 2025, Osprey filed a Notice of Appeal of the summary judgment decision and the Court's denial of the motion for reargument to the Connecticut Appellate Court. On May 12, 2025, Osprey withdrew the amended complaint and the appeal.

On May 19, 2025, Genesis Global Capital, LLC ("Genesis Capital") and Genesis Asia Pacific Pte. Ltd. ("Genesis Asia") filed a complaint in the United States Bankruptcy Court for the Southern District of New York ("SDNY Bankruptcy Court") against DCG and certain of its affiliates including the Company alleging that Genesis Capital made certain preferential transfers to the Company during the preference period prior to Genesis Capital's filing of a bankruptcy petition in SDNY Bankruptcy Court while the Company was allegedly an insider to Genesis Capital pursuant to 11 U.S.C. § 101(31). Genesis Capital seeks to avoid the alleged preferential transfers pursuant to 11 U.S.C. § 547(b), as well as recovery of property and disallowance of claims. The Company believes this lawsuit is without merit and intends to vigorously defend against it.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Shares**

**Class A common stock**

![img52763228_4.jpg](img52763228_4.jpg)

**PRELIMINARY PROSPECTUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**, 2025**

**Morgan Stanley**

**Until , 2025, all dealers that buy, sell or trade our shares of Class A common stock, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **PART II<br>INFORMATION NOT REQUIRED IN PROSPECTUS** 

## **Item 13. Other Expenses of Issuance and Distribution** 
Estimated expenses, other than underwriting discounts and commissions, of the sale of our Class A common stock, are as follows (in thousands):

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| | |
|:---|:---|
|  | **Amount to Be Paid** |
| SEC registration fee | $\* |
| FINRA filing fee | \* |
| Listing fee | \* |
| Transfer agent and registrar's fees | \* |
| Printing and engraving expenses | \* |
| Legal fees and expenses | \* |
| Accounting fees and expenses | \* |
| Blue Sky fees and expenses | \* |
| Miscellaneous | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $\* |

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\* To be provided by amendment.

Each of the amounts set forth above, other than the SEC registration fee and the FINRA filing fee, is an estimate.

## **Item 14. Indemnification of Directors and Officers** 
Section 145 of the Delaware General Corporation Law provides that a corporation may indemnify directors and officers as well as other employees and individuals against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any threatened, pending or completed actions, suits or proceedings in which such person is made a party by reason of such person being or having been a director, officer, employee or agent to the registrant. The Delaware General Corporation Law provides that Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise. The registrant's amended and restated bylaws provides for indemnification by the registrant of its directors, officers and employees to the fullest extent permitted by the Delaware General Corporation Law. The registrant has entered into indemnification agreements with each of its current directors and executive officers to provide these directors and executive officers additional contractual assurances regarding the scope of the indemnification set forth in the registrant's amended and restated certificate of incorporation and amended and restated bylaws and to provide additional procedural protections. There is no pending litigation or proceeding involving a director or executive officer of the registrant for which indemnification is sought.

Section 102(b)(7) of the Delaware General Corporation Law permits a corporation to provide in its certificate of incorporation that a director or officer of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer, except for liability (i) for any breach of the director's or officer's duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) for a director for unlawful payments of dividends or unlawful stock repurchases, redemptions or other distributions, (iv) for any transaction from which the director or officer derived an improper personal benefit or (v) for an officer in any action by or in the right of the corporation. The registrant's amended and restated certificate of incorporation provides for such limitation of liability.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

The registrant maintains standard policies of insurance under which coverage is provided (a) to its directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act and (b) to the registrant with respect to payments which may be made by the registrant to such officers and directors pursuant to the above indemnification provision or otherwise as a matter of law.

The proposed form of underwriting agreement filed as Exhibit 1.1 to this registration statement provides for indemnification of directors and officers of the registrant by the underwriters against certain liabilities.

## **Item 15. Recent Sales of Unregistered Securities** 
The following list sets forth information regarding all securities sold or issued by ‎the predecessors, ‎including to the registrant, in the three years preceding the date of this ‎registration statement. No ‎underwriters were involved in these sales. There was no ‎general solicitation of investors or advertising, and ‎we did not pay or give, directly or ‎indirectly, any commission or other remuneration, in connection with the ‎offering of ‎these shares. In each of the transactions described below, the recipients of the securities ‎‎represented their intention to acquire the securities for investment only and not with a ‎view to or for sale in ‎connection with any distribution thereof, and appropriate legends ‎were affixed to the securities issued in ‎these transactions.‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)‎‎Class A common stock

Following the effectiveness of this registration statement, we expect to issue shares of our ‎Class A common stock in connection with the transactions that ‎we refer to as the IPO Reorganization. These shares will be issued to a limited ‎number of investors, all of which have sufficient ‎knowledge and experience in financial ‎and business matters to make them capable of evaluating the merits ‎and risks of the ‎prospective investment.‎

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)‎Class B common stock

Following the effectiveness of this registration statement, we expect to issue ‎ shares of ‎our Class B common stock in connection with the transactions ‎that we refer to as the IPO Reorganization. These shares will be issued to a ‎limited number of investors, all of which have sufficient ‎knowledge and experience in ‎financial and business matters to make them capable of evaluating the merits ‎and risks ‎of the prospective investment.‎

The offers, sales and issuances of the securities described in (a) and (b) ‎above were exempt ‎from registration under the Securities Act of 1933 in reliance upon ‎Section 4(a)(2) of the ‎Securities Act as transactions by an issuer not involving any public offering. The ‎recipients in each of these ‎transactions acquired the securities for investment only and ‎not with a view to or for sale in connection with ‎any distribution thereof.

## **Item 16. Exhibits and Financial Statement Schedules** 
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Exhibits.

See the Exhibit index on the page immediately preceding the signature page for a list of exhibits filed as part of this registration statement, which Exhibit index is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Financial statement schedules.

All financial statement schedules are omitted because they are not required or are not applicable, or the information is otherwise set forth in the consolidated financial statements and related notes thereto.

## **Item 17. Undertakings** 
The undersigned registrant hereby undertakes:

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, or the Securities Act, may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions referenced in Item 14 of this registration statement, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered hereunder, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **EXHIBIT INDEX** 

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| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 1.1\* | Form of Underwriting Agreement |
| 3.1\* | Form of Amended and Restated Certificate of Incorporation of Grayscale Holdings to be in effect prior to the consummation of the offering made under this Registration Statement |
| 3.2\* | Form of Amended and Restated By-Laws of Grayscale Holdings to be in effect prior to the consummation of the offering made under this Registration Statement |
| 4.1\* | Form of common stock Certificate |
| 5.1\* | Opinion of Davis Polk & Wardwell LLP |
| 10.1\* | Form of Amended and Restated Limited Liability Company Agreement of Grayscale Operating, LLC |
| 10.2\* | Form of Reorganization Agreement between Grayscale Holdings, Grayscale Operating, LLC and the parties named therein  |
| 10.3\* | Form of Registration Rights Agreement between Grayscale Holdings and the Pre-IPO LLC Members  |
| 10.4\* | Form of Tax Receivable Agreement between Grayscale Holdings and the Pre-IPO LLC Members  |
| 10.5\* | Form of Stockholders Agreement between Grayscale Holdings and the Pre-IPO LLC Members  |
| 10.6\* | Form of Indemnification Agreement for Directors and Officers |
| 10.7\* | GSO Intermediate Holdings Corporation Omnibus Incentive Plan |
| 10.8\* | Form of Grayscale Holdings Employee Stock Purchase Plan  |
| 10.9\* | Form of Stock Option Grant Notice and Stock Option Award Terms under the GSO Intermediate Holdings Corporation Omnibus Incentive Plan |
| 10.10\* | Digital Currency Group, Inc. 2016 Stock Option and Grant Plan |
| 10.11\* | Form of Non-Qualified Stock Option Agreement under the Digital Currency Group, Inc. 2016 Stock Option and Grant Plan  |
| 10.12\* | Digital Currency Group, Inc. Stock Appreciation Rights Plan |
| 10.13\* | Form of Stock Appreciation Rights Agreements under the Digital Currency Group, Inc. Stock Appreciation Rights Plan  |
| 10.14\* | Amended & Restated Employment Agreement, between Peter Mintzberg and Grayscale Operating, LLC, dated as of March 19, 2025 |
| 10.15\* | Form of Executive Employment Agreement  |
| 10.16\* | Form of Restrictive Covenant Agreement |
| 10.17\* | Separation Agreement between Michael Sonnenshein and Grayscale Investments, LLC, dated June 25, 2024 |
| 10.18\* | Separation Agreement between Hugh Ross and Grayscale Operating, LLC, dated April 28, 2025 |
| 10.19\* | Form of Retention Bonus Letter  |
| 10.20\* | Non-Employee Director Compensation Policy |
| 10.21\* | BTC Mini Prime Broker Agreement, dated May 2, 2024, among Coinbase, Inc. and Grayscale Bitcoin Mini Trust and Grayscale Investments, LLC |
| 10.22\* | ETH Mini Prime Broker Agreement, dated May 23, 2024 among Coinbase, Inc. and Grayscale Ethereum Mini Trust and Grayscale Investments, LLC |
| 10.23\* | ETHE Prime Broker Agreement, dated May 22, 2024 among Coinbase, Inc. and Grayscale Ethereum Trust and Grayscale Investments, LLC |
| 10.24\* | GBTC Prime Broker Agreement, dated December 29, 2023 among Coinbase, Inc. and Grayscale Bitcoin Trust and Grayscale Investments, LLC |
| 21.1\* | Subsidiaries of the registrant |
| 23.1\* | Consent of KPMG LLP |
| 23.2\* | Consent of Davis Polk & Wardwell LLP (included in Exhibit 5.1) |
| 24.1\* | Power of Attorney (included on signature page) |
| 107\* | Filing Fee Table |

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\* To be filed by amendment.

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**CONFIDENTIAL TREATMENT REQUESTED BY GSO INTERMEDIATE HOLDINGS I CORPORATION PURSUANT TO 17 CFR 200.83**

# **SIGNATURES** 
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Stamford, State of Connecticut, on the day of , 2025.

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| | |
|:---|:---|
| GSO Intermediate Holdings I Corporation | GSO Intermediate Holdings I Corporation |
| By: |  |
|  | Name: Peter Mintzberg |
|  | Title: Chief Executive Officer and Director |

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KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints each of Peter Mintzberg, Craig Salm and Edward McGee his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement and any and all additional registration statements pursuant to Rule 462(b) of the Securities Act of 1933, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, granting unto each said attorney-in-fact and agents full power and authority to do and perform each and every act in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or either of them or their or his or her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**<u>Signature</u>** | &nbsp;&nbsp;**<u>Title</u>** | &nbsp;&nbsp;**<u>Date</u>** |
|  | &nbsp;&nbsp;Chief Executive Officer and Director (principal executive officer) | &nbsp;&nbsp;, 2025 |
| &nbsp;&nbsp;Peter Mintzberg |  |  |
|  | &nbsp;&nbsp;Chief Financial Officer and Director<br>(principal financial officer and principal accounting officer) | &nbsp;&nbsp;, 2025 |
| &nbsp;&nbsp;Edward McGee |  |  |
|  | &nbsp;&nbsp;Director | &nbsp;&nbsp;, 2025 |
| &nbsp;&nbsp;Barry Silbert |  |  |
|  | &nbsp;&nbsp;Director | &nbsp;&nbsp;, 2025 |
| &nbsp;&nbsp;Mark Shifke |  |  |
|  | &nbsp;&nbsp;Director | &nbsp;&nbsp;, 2025 |
| &nbsp;&nbsp;Matthew Kummell |  |  |

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