Grayscale Horizen Trust (ZEN) Files 10-Q for Period Ended December 31, 2023

TL;DR

<b>Grayscale Horizen Trust (ZEN) filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial status and operations.</b>

AI Summary

Grayscale Horizen Trust (ZEN) (HZEN) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. The filing is a Form 10-Q for Grayscale Horizen Trust (ZEN) for the quarterly period ended December 31, 2023. The Trust is sponsored by Grayscale Investments, LLC and incorporated in Delaware. The filing covers the period from October 1, 2023, to December 31, 2023. The Trust's principal executive offices are located at 290 Harbor Drive, 4th Floor, Stamford, Connecticut. The filing includes references to various financial inputs and subsequent events, including fair value measurements.

Why It Matters

For investors and stakeholders tracking Grayscale Horizen Trust (ZEN), this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial performance and operational details of the Grayscale Horizen Trust (ZEN) for the specified quarter. Understanding the trust's financial position and any disclosed subsequent events is crucial for assessing its current value and future prospects within the digital asset investment landscape.

Risk Assessment

Risk Level: medium — Grayscale Horizen Trust (ZEN) shows moderate risk based on this filing. The filing is a standard quarterly report for a digital asset trust, which inherently carries market risks associated with cryptocurrency volatility and regulatory uncertainty. Specific financial performance data is not detailed in this header information, requiring a deeper dive into the full document for a precise risk assessment.

Analyst Insight

Review the full 10-Q filing to analyze the trust's asset holdings, liabilities, and any disclosed operational changes or market risks impacting the Horizen (ZEN) cryptocurrency.

Key Numbers

• 2023-12-31 — Period End Date (Quarterly report period ended)
• 2024-02-07 — Filing Date (Date the 10-Q was filed)
• 000-56435 — Commission File Number (SEC filing identifier)
• 83-6217411 — IRS Employer Identification No. (Tax identification number)

Key Players & Entities

• Grayscale Horizen Trust (ZEN) (company) — Filer name
• Grayscale Investments, LLC (company) — Sponsor name
• Delaware (location) — State of incorporation
• 290 Harbor Drive, 4th Floor, Stamford, Connecticut 06902 (address) — Business and mail address
• 212-668-1427 (phone) — Business phone number
• December 31, 2023 (date) — Quarterly period end date
• February 7, 2024 (date) — Filing date
• Horizen (asset) — Underlying asset of the trust

FAQ

Key Dates

• 2023-12-31: Quarterly Period End — Marks the end of the reporting period for the 10-Q.
• 2024-02-07: Filing Date — Date the Form 10-Q was officially submitted to the SEC.

Filing Documents

• hzen-20231231.htm (10-Q) — 785KB
• hzen-ex31_1.htm (EX-31.1) — 21KB
• hzen-ex31_2.htm (EX-31.2) — 21KB
• hzen-ex32_1.htm (EX-32.1) — 7KB
• hzen-ex32_2.htm (EX-32.2) — 7KB
• img51510800_0.jpg (GRAPHIC) — 432KB
• img51510800_1.jpg (GRAPHIC) — 319KB
• img51510800_2.jpg (GRAPHIC) — 319KB
• 0000950170-24-011967.txt (&nbsp;) — 5087KB
• hzen-20231231.xsd (EX-101.SCH) — 357KB
• hzen-20231231_htm.xml (XML) — 387KB

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 Investment at December 31, 2023 and September 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 16 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 25 Item 4. Mine Safety Disclosures 25 Item 5. Other Information 25 Item 6. Exhibits 26 GLOSSARY OF DEFINED TERMS 27

SIGNATURES

SIGNATURES 31 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 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 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 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" 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 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 o

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION:

Financial St atements (Unaudited)

Item 1. Financial St atements (Unaudited) GRAYSCALE HORIZEN TRUST (ZEN) ( Amounts in thousands, except Share and per Share amounts) December 31, 2023 September 30, 2023 Assets: Investment in ZEN, at fair value (cost $ 12,213 and $ 12,291 as of December 31, 2023 and September 30, 2023, respectively) $ 5,460 $ 4,671 Total assets $ 5,460 $ 4,671 Liabilities: Sponsor's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 5,460 $ 4,671 Net Assets consists of: Paid-in-capital 13,563 13,563 Accumulated net investment loss ( 1,825 ) ( 1,788 ) Accumulated net realized gain on investment in ZEN 475 516 Accumulated net change in unrealized depreciation on investment in ZEN ( 6,753 ) ( 7,620 ) $ 5,460 $ 4,671 Shares issued and outstanding, no par value ( unlimited Shares authorized) 6,838,000 6,838,000 Principal market net asset value per Share $ 0.80 $ 0.68 See accompanying notes to the unaudited financial statements. 4 GRAYSCALE HORIZEN TRUST (ZEN) SCHEDULES OF INVESTMENT (UNAUDITED) ( Amounts in thousands, except quantity of ZEN and percentages) December 31, 2023 Quantity of ZEN Cost Fair Value % of Net Assets Investment in ZEN 597,362.33900802 $ 12,213 $ 5,460 100 % Net assets $ 12,213 $ 5,460 100 % September 30, 2023 Quantity of ZEN Cost Fair Value % of Net Assets Investment in ZEN 601,138.55454194 $ 12,291 $ 4,671 100 % Net assets $ 12,291 $ 4,671 100 % See accompanying notes to the unaudited financial statements. 5 GRAYSCALE HORIZEN TRUST (ZEN) ( Amounts in thousands) Three Months Ended December 31, 2023 2022 Investment income: Investment income $ - $ - Expenses: Sponsor's Fee, related party 37 43 Net investment loss ( 37 )

View Full Filing

View this 10-Q filing on SEC EDGAR