Grayscale Stellar Lumens Trust (XLM) Files 2024 10-K

TL;DR

XLM 10-K filed. Trust financials and operations detailed for FY24. Check it out.

AI Summary

Grayscale Stellar Lumens Trust (XLM) filed its 10-K for the fiscal year ending September 30, 2024. The filing details the trust's investments in Stellar Lumens, its financial performance, and operational aspects. Key information includes its business address at 290 Harbor Drive, Stamford, CT, and its IRS number 836545098. The trust was formerly known as Stellar Lumens Investment Trust before a name change on December 11, 2018.

Why It Matters

This filing provides investors and the public with a comprehensive overview of Grayscale Stellar Lumens Trust's financial health and operational status for the past fiscal year, crucial for understanding the trust's performance and future prospects.

Risk Assessment

Risk Level: medium — As a cryptocurrency trust, Grayscale Stellar Lumens Trust is subject to the inherent volatility and regulatory risks associated with digital assets.

Key Numbers

• 2024-09-30 — Fiscal Year End (Reporting period for the 10-K)
• 2024-11-22 — Filing Date (Date the 10-K was submitted to the SEC)

Key Players & Entities

• Grayscale Stellar Lumens Trust (XLM) (company) — Filer of the 10-K
• 2024-09-30 (date) — Fiscal year end
• 290 Harbor Drive, Stamford, CT (location) — Business and mailing address
• 836545098 (identifier) — IRS Number
• Stellar Lumens Investment Trust (company) — Former company name
• 2018-12-11 (date) — Date of name change

FAQ

Key Financial Figures

• $41.3 million — r Lumens and Bitcoin were approximately $41.3 million and $15.4 billion, respectively. As of
• $15.4 b — in were approximately $41.3 million and $15.4 billion, respectively. As of September 30
• $2.9 b — gate market value of Stellar Lumens was $2.9 billion, as compared to the $1,251.5 bill
• $1,251.5 billion — ns was $2.9 billion, as compared to the $1,251.5 billion aggregate value of Bitcoin. As of Septe

Filing Documents

• gxlm-20240930.htm (10-K) — 2377KB
• gxlm-ex31_1.htm (EX-31.1) — 22KB
• gxlm-ex31_2.htm (EX-31.2) — 22KB
• gxlm-ex32_1.htm (EX-32.1) — 7KB
• gxlm-ex32_2.htm (EX-32.2) — 7KB
• img53533793_0.jpg (GRAPHIC) — 474KB
• img53533793_1.jpg (GRAPHIC) — 299KB
• img53533793_2.jpg (GRAPHIC) — 257KB
• 0000950170-24-130176.txt ( ) — 7800KB
• gxlm-20240930.xsd (EX-101.SCH) — 358KB
• gxlm-20240930_htm.xml (XML) — 766KB

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 Stellar Lumens Trust (XLM) (the "Trust"). 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 Trust's operations, the plans of Grayscale Investments, LLC (the "Sponsor") and references to the Trust'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 Sponsor 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 Sponsor'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 Sponsor's beliefs, estimates and opinions on the date the statements are made and neither the Trust nor the Sponsor 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

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 46 Item 1B. Unresolved Staff Comments 78 Item 1C. Cybersecurity 79 Item 2.

Properties

Properties 79 Item 3.

Legal Proceedings

Legal Proceedings 80 Item 4. Mine Safety Disclosures 80 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 81 Item 6. [Reserved] 81 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 82 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 89 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 89 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 89 Item 9A.

Controls and Procedures

Controls and Procedures 90 Item 9B. Other Information 90 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 90 PART III Item 10. Directors, Executive Officers and Corporate Governance 91 Item 11.

Executive Compensation

Executive Compensation 92 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 93 Item 13. Certain Relationships and Related Transactions, and Director Independence 93 Item 14. Principal Accountant Fees and Services 95 PART IV Item 15. Exhibits and Financial Statement Schedules 96 Item 16. Form 10-K Summary 97 Glossary of Defined Terms 98 iv PART I

B usiness

Item 1. B usiness Overview of the Trust and the Shares Grayscale Stellar Lumens Trust (XLM) (the "Trust") is a Delaware Statutory Trust that was formed on October 26, 2018 by the filing of the Certificate of Trust with the Delaware Secretary of State in accordance with the provisions of the Delaware Statutory Trust Act. The Trust's purpose is to hold Stellar Lumens ("XLM"). The Stellar Ledger uses a consensus mechanism called the Stellar Consensus Protocol which is an implementation of the Federated Byzantine Agreement pioneered by Ripple, which is similar to proof-of-stake, but does not include staking rewards or incentives. Instead, the Federated Byzantine Agreement is a consensus mechanism where nodes independently decide which other nodes to trust for information. Lumens transactions are resolved around every six seconds, which is faster than Bitcoin's block production, which are resolved around every 10 minutes. As of September 30, 2024, Stellar Lumens had a circulating supply of approximately 29.6 billion coins, which is more than Bitcoin's current circulating supply of approximately 19.8 million coins. As of September 30, 2024, the 24-hour trading volume of Stellar Lumens and Bitcoin were approximately $41.3 million and $15.4 billion, respectively. As of September 30, 2024, the aggregate market value of Stellar Lumens was $2.9 billion, as compared to the $1,251.5 billion aggregate value of Bitcoin. As of September 30, 2024, XLM was the 31st largest digital asset by market capitalization as tracked by CoinMarketCap.com. The Stellar Network's intended function is to allow users or businesses to conduct cross-currency transactions securely and quickly. A conventional cross-currency transaction often requires liquidity providers to work across several currency pairs to facilitate the transaction, which increases transaction costs and can be time-intensive, particularly when transacting between two rarely traded currency pairs. To reduce the costs and time

View Full Filing

View this 10-K filing on SEC EDGAR