ADDED
All statements (other than statements of historical fact) included in this Annual Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust s operations, the plans of Grayscale Investments Sponsors, LLC (the Sponsor ), and references to the Trust s future success and other similar matters are forward-looking statements.
Summary of Risk Factors Below is a summary of the principal factors that make an investment in the Shares speculative or risky.
Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, can be found below in Item 1A.
Some of the factors that could materially and adversely affect our business include, but are not limited to, the following: Risk Factors Related to Digital Assets Extreme volatility of trading prices that many digital assets, including Bitcoin, have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value.
The medium-to-long term value of the Shares is subject to a number of factors relating to the capabilities and development of blockchain technologies and to the fundamental investment characteristics of digital assets.
Digital assets represent a relatively new and rapidly evolving industry, and the value of the Shares depends on the acceptance of Bitcoin.
Digital assets may have concentrated ownership and large sales or distributions by holders of such digital assets could have an adverse effect on the market price of such digital assets.
A temporary or permanent fork or a clone could adversely affect the value of the Shares.
Risk Factors Related to the Digital Asset Markets Recent developments in the digital asset economy have led to extreme volatility and disruption in digital asset markets, a loss of confidence in participants of the digital asset ecosystem, significant negative publicity surrounding digital assets broadly and market-wide declines in liquidity.
The value of the Shares relates directly to the value of Bitcoin held by the Trust, the value of which may be highly volatile and subject to fluctuations.
REMOVED
Management s Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report on Form 10-K, as well as those described from time to time in our future reports filed with the SEC.
A glossary of industry and other defined terms is included in this Annual Report, beginning on page 98 .
This Annual Report supplements and where applicable amends the Memorandum, as defined in the Trust s Amended and Restated Declaration of Trust and Trust Agreement, for general purposes.
There are several key features of the Bitcoin Network, including the maximum block size used by the network.
Bitcoin uses the SHA-256 algorithm, which is preferred for parallel processing, but is also easily used to build application-specific integrated circuits (ASICs) to mine the network more efficiently.
Bitcoin has a current maximum block size of approximately 4MB and, on average blocks are generated every ten minutes.
Bitcoin s halvings take place approximately every four years, occurring every 210,000 blocks.
As of December 31, 2024, Bitcoin s circulating supply was approximately 19.8 million coins.
As of December 31, 2024, the 24-hour trading volume of Bitcoin was approximately $17.7 billion.
As of December 31, 2024 the aggregate market value of Bitcoin was approximately $1.85 trillion.