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Grayscale Investments LLC Grayscale Horizen Trust (ZEN) (HZEN) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net assets to $25,713,000, up from $4,767,000 at the end of the previous quarter. This increase is attributed to the appreciation in the value of Horizen (ZEN) held by the Trust.
The Trust reported a net realized and unrealized gain on investment in ZEN of $15,433,000 for the quarter. This was driven by the rise in ZEN prices from $8.13 per ZEN at the end of September 2024 to $28.91 per ZEN at the end of December 2024.
The Trust incurred a Sponsor’s Fee of $56,000 during the quarter, which was paid in ZEN. The Trust does not currently operate a redemption program and has no intention of seeking regulatory approval to do so.
The Trust's principal market for ZEN is identified as Coinbase, and the Trust's net asset value is determined based on the market price of ZEN on this platform.
The Trust's investment objective is for the value of its shares to reflect the value of ZEN held by the Trust, less expenses and other liabilities. However, the shares have traded at both premiums and discounts to this value.
The Trust does not hold cash or cash equivalents and relies on the sale of ZEN to pay for any additional expenses not covered by the Sponsor's Fee.
The Trust is subject to various risks including market risk and liquidity risk, with the price of ZEN being highly volatile and influenced by numerous factors.
The Trust underwent an internal corporate reorganization effective January 1, 2025, with Grayscale Operating, LLC becoming the sole sponsor by May 3, 2025.
The filing also notes that the Trust and its Sponsor may be subject to legal proceedings, although none are expected to have a material adverse effect on the Trust's operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Grayscale Investments LLC Grayscale Horizen Trust (ZEN) quarterly 10-Q report dated February 10, 2025. To report an error, please email earnings@qz.com.