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Fair Value of Bitcoin

12 Months Ended

Dec. 31, 2023

3. Fair Value of Bitcoin

Bitcoin is held by the Custodian on behalf of the Trust and is carried at fair value. As of December 31, 2023, 2022 and 2021 the Trust held 619,525.9291702, 632,041.52945742 and 644,809.96863835 Bitcoin, respectively.

The Trust determined the fair value per Bitcoin to be $42,533.28, $16,556.29 and $45,867.86 on December 31, 2023, 2022 and 2021, respectively, using the price provided at 4:00 p.m., New York time, by the Digital Asset Trading Platform Market considered to be the Trust’s principal market (Coinbase).

The following represents the changes in quantity of Bitcoin and the respective fair value:


(Amounts in thousands, except Bitcoin amounts)	Bitcoin		Fair Value
Beginning balance as of January 1, 2021		607,039.48515191	$	17,716,478

Bitcoin contributed		50,738.88950472		1,905,227
Bitcoin distributed for Sponsor’s Fee, related party		(12,968.40601828)		(615,420)
Net change in unrealized appreciation on investment in Bitcoin		—		10,099,600
Net realized gain on investment in Bitcoin		—		470,168

Ending balance as of December 31, 2021		644,809.96863835	$	29,576,053


(Amounts in thousands, except Bitcoin amounts)	Bitcoin		Fair Value
Beginning balance as of January 1, 2022		644,809.96863835	$	29,576,053

Bitcoin contributed		—		—
Bitcoin distributed for Sponsor’s Fee, related party		(12,768.43918093)		(360,683)
Net change in unrealized depreciation on investment in Bitcoin		—		(18,967,171)
Net realized gain on investment in Bitcoin		—		216,064

Ending balance as of December 31, 2022		632,041.52945742	$	10,464,263


(Amounts in thousands, except Bitcoin amounts)	Bitcoin		Fair Value
Beginning balance as of January 1, 2023		632,041.52945742	$	10,464,263

Bitcoin contributed		—		—
Bitcoin distributed for Sponsor’s Fee, related party		(12,515.60028722)		(360,561)
Net change in unrealized appreciation on investment in Bitcoin		—		16,027,962
Net realized gain on investment in Bitcoin		—		218,806

Ending balance as of December 31, 2023		619,525.9291702	$	26,350,470

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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