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Investment Valuation and Calculation of Net Asset Value (“NAV”)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Investment Valuation and Calculation of Net Asset Value (“NAV”)

3. Investment Valuation and Calculation of Net Asset Value (“NAV”)

 

FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value adjustments.

 

GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investments at fair value.

 

Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”), or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows:

 

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities.

 

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and

 

Level 3 — Inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

 

 

 

 

The following table summarizes the Trust’s investments at fair value:

 

March 31, 2026 (Unaudited)  Level 1   Level 2   Level 3   Total 
Bitcoin  $429,823,599   $—   $—   $429,823,599 
Total Investments  $429,823,599   $—   $—   $429,823,599 

 

December 31, 2025  Level 1   Level 2   Level 3   Total 
Bitcoin  $505,489,906   $—   $—   $505,489,906 
Total Investments  $505,489,906   $—   $—   $505,489,906 


 

There were no transfers between Level 1 and other Levels for the three months ended March 31, 2026, or for the year ended December 31, 2025.

 

The Trust fair values investments for financial statement purposes, categorizing those investments using the hierarchy as described above.

 

The Trust’s NAV is calculated by subtracting all accrued fees, expenses and other liabilities from the fair value of its bitcoin and other assets. The Trust’s NAV per share is calculated by taking the Trust’s NAV divided by the total amount of Shares outstanding.

 

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

 

   Bitcoin   Fair Value 
Beginning Balance as of January 1, 2026   5,767   $505,489,906 
Bitcoin purchased   708    57,447,385 
Bitcoin sold for the redemption of Shares   (168)   (12,405,521)
Bitcoin transferred to pay the Sponsor fee   (4)   (307,398)
Net Change in unrealized appreciation (depreciation) from investment in bitcoin   —    (120,717,285)
Net Realized gain (loss) on investments in bitcoin   —    316,512 
Ending balance as of March 31, 2026   6,303   $429,823,599 

 

   Bitcoin   Fair Value 
Beginning Balance as of January 1, 2025   8,849   $826,306,338 
Bitcoin purchased   173    17,543,529 
Bitcoin sold for the redemption of Shares   (3,231)   (286,671,014)
Bitcoin transferred to pay the Sponsor fee   (7)   (642,079)
Net change in unrealized appreciation (depreciation) from investment in bitcoin   —    (181,830,142)
Net realized gain (loss) on investments in bitcoin   —    105,677,876 
Ending balance as of March 31, 2025   5,784   $480,384,508