Grayscale Horizen Trust (ZEN) Files 2024 10-K

TL;DR

ZEN 10-K filed Nov 22, 2024. Shows trust's financial status for FY ending Sep 30, 2024.

AI Summary

Grayscale Horizen Trust (ZEN) filed its 10-K for the fiscal year ending September 30, 2024. The filing details the trust's operations and financial status, including its investment in Zen. The trust, formerly known as Zen Investment Trust, is incorporated in Delaware and its fiscal year ends on September 30th. The filing was made on November 22, 2024.

Why It Matters

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

Risk Assessment

Risk Level: medium — As a crypto-focused trust, Grayscale Horizen Trust is subject to the inherent volatility and regulatory uncertainties of the cryptocurrency market.

Key Numbers

• 20240930 — Fiscal Year End (The report covers the period up to this date.)
• 20241122 — Filing Date (Date the 10-K was submitted to the SEC.)

Key Players & Entities

• Grayscale Horizen Trust (ZEN) (company) — Filer of the 10-K
• Zen Investment Trust (company) — Former name of Grayscale Horizen Trust
• 20240930 (date) — Fiscal year end date
• 20241122 (date) — Filing date
• DE (location) — State of incorporation

FAQ

Key Financial Figures

• $3.5 million — Horizen and Bitcoin were approximately $3.5 million and $15.4 billion, respectively. As of
• $15.4 b — oin were approximately $3.5 million and $15.4 billion, respectively. As of September 30
• $124.9 m — e aggregate market value of Horizen was $124.9 million, as compared to the $1,251.5 bill
• $1,251.5 billion — was $124.9 million, as compared to the $1,251.5 billion aggregate value of Bitcoin. As of Septe

Filing Documents

• hzen-20240930.htm (10-K) — 2438KB
• hzen-ex31_1.htm (EX-31.1) — 23KB
• hzen-ex31_2.htm (EX-31.2) — 23KB
• hzen-ex32_1.htm (EX-32.1) — 8KB
• hzen-ex32_2.htm (EX-32.2) — 8KB
• img52411256_0.jpg (GRAPHIC) — 508KB
• img52411256_1.jpg (GRAPHIC) — 282KB
• img52411256_2.jpg (GRAPHIC) — 264KB
• 0000950170-24-130198.txt ( ) — 8003KB
• hzen-20240930.xsd (EX-101.SCH) — 411KB
• hzen-20240930_htm.xml (XML) — 768KB

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 Horizen Trust (ZEN) (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 cautio

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 50 Item 1B. Unresolved Staff Comments 85 Item 1C. Cybersecurity 85 Item 2.

Properties

Properties 85 Item 3.

Legal Proceedings

Legal Proceedings 86 Item 4. Mine Safety Disclosures 86 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 87 Item 6. [Reserved] 87 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 88 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 96 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 96 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 96 Item 9A.

Controls and Procedures

Controls and Procedures 96 Item 9B. Other Information 97 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 97 PART III Item 10. Directors, Executive Officers and Corporate Governance 98 Item 11.

Executive Compensation

Executive Compensation 99 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 99 Item 13. Certain Relationships and Related Transactions and Director Independence 100 Item 14. Principal Accountant Fees and Services 102 PART IV Item 15. Exhibits and Financial Statement Schedules 103 Item 16. Form 10-K Summary 105 Glossary of Defined Terms 106 iv PART I

B usiness

Item 1. B usiness Overview of the Trust and the Shares Grayscale Horizen Trust (ZEN) (formerly known as Horizen Investment Trust) (the "Trust") is a Delaware Statutory Trust that was formed on July 3, 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 Horizen ("ZEN"). The Horizen Network, an alternative software implementation of the Bitcoin, network was created in 2017 by a group that forked Zclassic, which is a clone of Zcash. Although the Horizen Network is similar to the Bitcoin Network, there are several key differences between the Horizen Network and the Bitcoin Network. Historically, the fundamental difference between the Bitcoin Network and the Horizen Network was that the Horizen Network offered selective privacy-preserving features. However, the Horizen Network implemented an update in September 2023 that removed many of these privacy preserving features, as described below. In addition, the Bitcoin Network 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. In contrast, the Horizen Network employs the Equihash algorithm. Horizen has a current block size of 2MB, compared to the variable block size of the Bitcoin Network, which has a limit of approximately 4MB. Horizen blocks are also generated every 2.5 minutes, which is approximately four times faster than Bitcoin's block production. Horizen halvings occur every 840,000 blocks, unlike Bitcoin's halvings that occur every 210,000 blocks. The Horizen mining difficulty is also roughly one three-millionth of Bitcoin's, making it significantly easier to mine blocks and earn rewards. Additionally, Horizen and Bitcoin both have a maximum supply of 21 million coins. As of September 30, 2024, Horizen had a circulating supply of approximate

View Full Filing

View this 10-K filing on SEC EDGAR