Grayscale Digital Large Cap Fund LLC Files 10-Q for Period Ending 2023-12-31

TL;DR

<b>Grayscale Digital Large Cap Fund LLC filed its Q2 10-Q report for the period ending December 31, 2023, detailing its digital asset holdings and subsequent events.</b>

AI Summary

Grayscale Digital Large Cap Fund LLC (GDLC) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. The filing is a 10-Q for Grayscale Digital Large Cap Fund LLC, reporting for the period ending December 31, 2023. The company's fiscal year ends on June 30. The filing was submitted on February 7, 2024. Key assets mentioned include Bitcoin, Ethereum, Cardano, XRP, Solana, Chainlink, Uniswap, Polkadot, Litecoin, Bitcoin Cash, and Avalanche. Subsequent events noted on January 4, 2024, and February 2, 2024, relate to various digital assets.

Why It Matters

For investors and stakeholders tracking Grayscale Digital Large Cap Fund LLC, this filing contains several important signals. This 10-Q provides investors with an updated view of the fund's digital asset portfolio as of the end of the second quarter of fiscal year 2024. The inclusion of subsequent events highlights significant developments or transactions that occurred shortly after the reporting period, which could impact the fund's current valuation and strategy.

Risk Assessment

Risk Level: low — Grayscale Digital Large Cap Fund LLC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant negative financial disclosures.

Analyst Insight

Monitor future filings for changes in digital asset allocation and performance, as well as any updates on subsequent events.

Key Numbers

• 2023-12-31 — Period End Date (Reporting period for the 10-Q)
• 2024-02-07 — Filing Date (Date the 10-Q was filed with the SEC)
• 06-30 — Fiscal Year End (The fund's fiscal year end date)
• 2024-01-04 — Subsequent Event Date (Date of a noted subsequent event)
• 2024-02-02 — Subsequent Event Date (Date of another noted subsequent event)

Key Players & Entities

• Grayscale Digital Large Cap Fund LLC (company) — Filer
• 2023-12-31 (date) — Period of report
• 2024-02-07 (date) — Filed as of date
• Bitcoin (company) — Digital asset
• Ethereum (company) — Digital asset
• Cardano (company) — Digital asset
• XRP (company) — Digital asset
• Solana (company) — Digital asset

Forward-Looking Statements

• Grayscale Digital Large Cap Fund LLC will continue to actively rebalance its portfolio in response to market conditions. (Grayscale Digital Large Cap Fund LLC) — medium confidence, target: 2024-06-30
• The fair value input levels for digital assets like Ethereum may shift if market liquidity or transparency changes significantly. (Ethereum) — medium confidence, target: 2024-12-31

FAQ

Key Dates

• 2023-12-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-02-07: Filing Date — Date the 10-Q was officially submitted to the SEC.
• 2024-01-04: Subsequent Event — A significant event occurring after the reporting period.
• 2024-02-02: Subsequent Event — Another significant event occurring after the reporting period.

Filing Documents

• gdlc-20231231.htm (10-Q) — 2236KB
• gdlc-ex31_1.htm (EX-31.1) — 20KB
• gdlc-ex31_2.htm (EX-31.2) — 20KB
• gdlc-ex32_1.htm (EX-32.1) — 7KB
• gdlc-ex32_2.htm (EX-32.2) — 7KB
• img241420375_0.jpg (GRAPHIC) — 482KB
• img241420375_1.jpg (GRAPHIC) — 374KB
• img241420375_2.jpg (GRAPHIC) — 290KB
• 0000950170-24-011965.txt (&nbsp;) — 9213KB
• gdlc-20231231.xsd (EX-101.SCH) — 507KB
• gdlc-20231231_htm.xml (XML) — 1475KB

Forward-Looking Statements

Forward-Looking Statements 3 Industry and Market Data 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 4 Schedules of Investments at December 31, 2023 and June 30, 2023 5 6 7 Notes to the Unaudited Financial Statements 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 41 Item 5. Other Information 42 Item 6. Exhibits 43 GLOSSARY OF DEFINED TERMS 44

SIGNATURES

SIGNATURES 49 2 Forw ard-Looking Statements This Quarterly Report on Form 10-Q 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 Quarterly 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" of our Annual Report on Form 10-K and in "Part II, Item 1A. Risk Factors" herein. 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 opinion

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION:

Financial St atements (Unaudited)

Item 1. Financial St atements (Unaudited) GRAYSCALE Digital Large Cap Fund LLC ( Amounts in thousands, except Share and per Share amounts) December 31, 2023 June 30, 2023 Assets: Investments in digital assets, at fair value (cost $ 124,368 and $ 124,888 as of December 31, 2023 and June 30, 2023, respectively) $ 373,786 $ 272,632 Total assets $ 373,786 $ 272,632 Liabilities: Manager's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 373,786 $ 272,632 Net Assets consists of: Paid-in-capital $ 114,568 $ 114,568 Accumulated net investment loss ( 28,324 ) ( 24,760 ) Accumulated net realized gain on investments in digital assets 38,124 35,080 Accumulated net change in unrealized appreciation on investments in digital assets 249,418 147,744 $ 373,786 $ 272,632 Shares issued and outstanding, no par value (unlimited Shares authorized) 15,867,400 15,867,400 Principal market net asset value per Share $ 23.56 $ 17.18 See accompanying notes to the unaudited financial statements. 4 GRAYSCALE Digital Large Cap Fund LLC SCHEDULES OF INVESTMENTs (UNAUDITED) ( Amounts in thousands, except quantity of each Fund Component and percentages) December 31, 2023 Quantity Cost Fair Value % of Net Assets Investment in BTC 6,191.64099931 $ 72,839 $ 263,351 70.46 % Investment in ETH 38,182.58750586 18,541 87,098 23.30 % Investment in SOL 131,108.39736737 15,405 13,739 3.68 % Investment in ADA 11,155,052.905941 15,083 6,683 1.79 % Investment in MATIC 2,959,614.86947626 2,500 2,915 0.77 % Net assets $ 124,368 $ 373,786 100.00 % June 30, 2023 Quantity Cost Fair Value % of Net Assets Investment in BTC 6,230.97866186 $ 72,585 $ 189,185 69.39 % Investment in ETH 39,445.13266916 19,154 7

View Full Filing

View this 10-Q filing on SEC EDGAR