Grayscale Digital Large Cap Fund Files 2024 10-K

TL;DR

GDLC filed its 10-K. Holdings include BTC, ETH, SOL. Check it out.

AI Summary

Grayscale Digital Large Cap Fund LLC filed its 10-K for the fiscal year ending June 30, 2024. The filing details the fund's investments in various digital assets, including Bitcoin, Ethereum, and Solana. The company's business address is 290 Harbor Drive, 4th Floor, Stamford, CT 06902, with a business phone number of 212-668-1427.

Why It Matters

This filing provides investors with a comprehensive overview of Grayscale Digital Large Cap Fund's financial performance and holdings for the fiscal year, crucial for understanding the fund's value and strategy in the digital asset market.

Risk Assessment

Risk Level: medium — The fund invests in digital assets, which are inherently volatile and subject to significant market and regulatory risks.

Key Numbers

• 0630 — Fiscal Year End (Indicates the end of the reporting period for the 10-K.)

Key Players & Entities

• Grayscale Digital Large Cap Fund LLC (company) — Filer
• 2024-06-30 (date) — Fiscal Year End
• 290 Harbor Drive, 4th Floor, Stamford, CT 06902 (address) — Business Address
• 212-668-1427 (phone_number) — Business Phone
• Bitcoin (asset) — Investment
• Ethereum (asset) — Investment
• Solana (asset) — Investment

FAQ

Filing Documents

• gdlc-20240630.htm (10-K) — 4305KB
• gdlc-ex31_1.htm (EX-31.1) — 21KB
• gdlc-ex31_2.htm (EX-31.2) — 21KB
• gdlc-ex32_1.htm (EX-32.1) — 7KB
• gdlc-ex32_2.htm (EX-32.2) — 7KB
• img242317948_0.jpg (GRAPHIC) — 444KB
• img242317948_1.jpg (GRAPHIC) — 373KB
• img242317948_2.jpg (GRAPHIC) — 284KB
• 0000950170-24-104237.txt ( ) — 13234KB
• gdlc-20240630.xsd (EX-101.SCH) — 510KB
• gdlc-20240630_htm.xml (XML) — 2221KB

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains "forward-looking statements" with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Grayscale Digital Large Cap Fund LLC (the "Fund"). Statements preceded by, followed by or that include words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. 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 Fund's operations, the plans of Grayscale Investments, LLC (the "Manager") and references to the Fund's future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Manager made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Manager's expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to, those described in "Part I, Item 1A. Risk Factors." Forward-looking statements are made based on the Manager's beliefs, estimates and opinions on the date the statements are made and neither the Fund nor the Manager is under a duty or undertakes an obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by applicable laws. Investors are therefore cau

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 59 Item 1B. Unresolved Staff Comments 99 Item 1C. Cybersecurity 99 Item 2.

Properties

Properties 99 Item 3.

Legal Proceedings

Legal Proceedings 99 Item 4. Mine Safety Disclosures 100 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 101 Item 6. [Reserved] 102 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 103 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 119 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 119 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 120 Item 9A.

Controls and Procedures

Controls and Procedures 120 Item 9B. Other Information 120 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 120 PART III Item 10. Directors, Executive Officers and Corporate Governance 121 Item 11.

Executive Compensation

Executive Compensation 122 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 123 Item 13. Certain Relationships and Related Transactions and Director Independence 123 Item 14. Principal Accountant Fees and Services 125 PART IV Item 15. Exhibits and Financial Statement Schedules 126 Item 16. Form 10-K Summary 127 Glossary of Defined Terms 128 v PART I

B usiness

Item 1. B usiness Overview of the Fund and the Shares The Fund is a Cayman Islands limited liability company that was formed on January 25, 2018. The Fund's purpose is to hold the top digital assets by market capitalization that meet certain criteria set by the Fund. The Fund issues Shares, which represent equal, fractional undivided interests in the profits, losses, distributions, capital and assets of, and ownership of, the Fund, on a periodic basis to certain "accredited investors" within the meaning of Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the "Securities Act"). The Fund issues Shares only in one or more whole Baskets. A Basket equals 100 Shares. See "—Description of Creation of Shares." Shares purchased in the private placement are restricted securities that may not be resold except in transactions exempt from registration under the Securities Act and state securities laws, and any such transaction must be approved in advance by the Manager. In determining whether to grant approval, the Manager will specifically look at whether the conditions of Rule 144 under the Securities Act, including the requisite holding period thereunder, and any other applicable laws have been met. Any attempt to sell Shares without the approval of the Manager in its sole discretion will be void ab initio. See "—Description of the Shares—Transfer Restrictions" for more information. The Shares are quoted on OTC Markets Group Inc.'s OTCQX Best Market ("OTCQX") under the ticker symbol "GDLC." Pursuant to Rule 144, the minimum holding period for Shares purchased in the private placement is six months. Shareholders that purchased Shares directly from the Fund and have held them for the requisite holding period in accordance with Rule 144 under the Securities Act may sell their Shares on OTCQX upon receiving approval from the Manager. Investors may also choose to purchase Shares on OTCQX. Shares purchased on OTCQX are not restricted. We intend to s

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View this 10-K filing on SEC EDGAR