Grayscale Horizen Trust (ZEN) Files Q4 2024 10-Q

TL;DR

ZEN 10-Q filed. Grayscale trust updates on Horizen holdings.

AI Summary

Grayscale Horizen Trust (ZEN) filed its 10-Q for the period ending December 31, 2024. The filing details the trust's financial performance and holdings, including its investment in Zen. The trust is sponsored by Grayscale, a digital asset manager.

Why It Matters

This filing provides investors with an update on the Grayscale Horizen Trust's financial health and its holdings of the Horizen (ZEN) cryptocurrency.

Risk Assessment

Risk Level: medium — The trust's value is directly tied to the volatile cryptocurrency market, specifically Horizen (ZEN).

Key Numbers

• 20241231 — Period End Date (The 10-Q covers financial information up to this date.)
• 20250210 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Grayscale Horizen Trust (ZEN) (company) — Filer of the 10-Q
• Grayscale (company) — Sponsor of the trust
• Horizen (ZEN) (company) — Underlying asset held by the trust
• 20241231 (date) — Period end date for the 10-Q filing
• 20250210 (date) — Filing date of the 10-Q

FAQ

Filing Documents

• hzen-20241231.htm (10-Q) — 921KB
• hzen-ex31_1.htm (EX-31.1) — 24KB
• hzen-ex31_2.htm (EX-31.2) — 24KB
• hzen-ex32_1.htm (EX-32.1) — 8KB
• hzen-ex32_2.htm (EX-32.2) — 8KB
• img52434321_0.jpg (GRAPHIC) — 907KB
• img52434321_1.jpg (GRAPHIC) — 821KB
• img52434321_2.jpg (GRAPHIC) — 946KB
• 0000950170-25-017070.txt ( ) — 9677KB
• hzen-20241231.xsd (EX-101.SCH) — 357KB
• hzen-20241231_htm.xml (XML) — 453KB

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, 2024 and September 30, 2024 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 24 Item 4.

Controls and Procedures

Controls and Procedures 24

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 25 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 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 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 ("GSI"), the sponsor of the Trust before January 1, 2025, Grayscale Operating, LLC ("GSO"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025, and Grayscale Investments Sponsors, LLC ("GSIS"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025 and the sole remaining sponsor thereafter (each of GSI, GSO and GSIS, the "Sponsor", as the context may require, and GSO and GSIS, together, the "Co-Sponsors"), 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

– 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, 2024 September 30, 2024 Assets: Investment in ZEN, at fair value (cost $ 17,476 and $ 11,987 as of December 31, 2024 and September 30, 2024, respectively) $ 25,713 $ 4,767 Total assets $ 25,713 $ 4,767 Liabilities: Sponsor's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 25,713 $ 4,767 Shares issued and outstanding, no par value ( unlimited Shares authorized) 10,438,700 6,838,000 Principal market net asset value per Share $ 2.46 $ 0.70 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, 2024 Quantity of ZEN Cost Fair Value % of Net Assets Investment in ZEN 889,400.61619664 $ 17,476 $ 25,713 100 % Net assets $ 17,476 $ 25,713 100 % September 30, 2024 Quantity of ZEN Cost Fair Value % of Net Assets Investment in ZEN 586,285.79535365 $ 11,987 $ 4,767 100 % Net assets $ 11,987 $ 4,767 100 % See accompanying notes to the unaudited financial statements. 5 GRAYSCALE HORIZEN TRUST (ZEN) ( Amounts in thousands) Three Months Ended December 31, 2024 2023 Investment income: Investment income $ - $ - Expenses: Sponsor's Fee, related party 56 37 Net investment loss ( 56 ) ( 37 ) Net realized and unrealized gain from: Net realized loss on investment in ZEN ( 24 ) ( 41 ) Net change in unrealized appreciation on investment in ZEN 15,457 867 Net realized and unrealized gain on investment 15,433 826 Net increase in net assets resulting from operatio

View Full Filing

View this 10-Q filing on SEC EDGAR