CoinShares Valkyrie Bitcoin Fund SEC 10-Q Report
CoinShares Valkyrie Bitcoin Fund, a Delaware statutory trust listed on Nasdaq under the ticker symbol BRRR, has released its Form 10-Q report for the first quarter of 2025. The report provides a detailed overview of the Trust's financial and operational performance, reflecting the impact of market conditions on its bitcoin holdings and overall business strategy.
Financial Highlights
Net Income (loss): The Trust reported a net loss of $(76.61) million for the quarter, primarily due to a decrease in unrealized gains on its bitcoin investments and realized gains on the disposition of bitcoin.
Net Income (loss) per share: The net loss per share was $(2.73), indicating a decrease in net asset value per share from $26.43 to $23.49 during the quarter.
Net Asset Value per Share, beginning of period: The net asset value per share started at $26.43 and decreased to $23.49 by the end of the period, reflecting an 11.1% depreciation in the value of bitcoin.
Total return, at net asset value: The total return at net asset value was (11.12)%, driven by the decrease in the value of bitcoin and the net asset value per share.
Total return, at market value: The total return at market value was (11.91)%, indicating a decline in market value per share from $26.45 to $23.30.
Business Highlights
Trust Overview: CoinShares Valkyrie Bitcoin Fund is a Delaware statutory trust that issues shares representing units of fractional undivided beneficial interest in the Trust. The Trust aims to reflect the performance of bitcoin, less liabilities and expenses.
Investment Strategy: The Trust holds bitcoin and values its shares daily based on the CME CF Bitcoin Reference Rate – New York Variant. This index is independently calculated and aggregates trade flow from major bitcoin spot exchanges.
Operational Performance: During the three months ended March 31, 2025, the Trust's net asset value decreased due to a reduction in outstanding shares and a decline in the value of bitcoin. The Trust experienced significant redemptions, with 11,420,000 shares redeemed during the quarter.
Sponsor Fee and Expenses: The Trust incurs a Sponsor Fee, which is the only ordinary expense, accruing at an annual rate of 0.25% of the Trust’s bitcoin holdings. The Sponsor assumes most other expenses, including marketing, legal, and audit fees.
Future Outlook: The Trust does not anticipate using special purpose entities for off-balance sheet financing and expects its cash balance to remain insignificant, relying on bitcoin sales to meet liquidity needs. The Trust's principal market for bitcoin valuation is determined quarterly, ensuring alignment with fair value accounting standards.
SEC Filing: CoinShares Valkyrie Bitcoin Fund [ BRRR ] - 10-Q - May. 15, 2025
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