CoinShares Valkyrie Bitcoin Fund reported a significant decline in its financial performance for the first quarter of 2025, with net assets dropping to $480.4 million from $826.1 million at the end of 2024. This decrease was primarily attributed to a reduction in the value of bitcoin, which fell by 11.1% during the quarter, alongside a substantial decrease in the number of shares outstanding, which decreased from 31.3 million to 20.5 million. The net asset value per share also declined from $26.43 to $23.49, reflecting the overall downturn in the fund's performance.
The fund's operations for the quarter ended March 31, 2025, resulted in a net loss of $76.6 million, compared to a net income of $90.7 million for the same period in 2024. This loss was driven by a net change in unrealized losses on investments amounting to $181.8 million, despite realizing gains of $105.7 million from bitcoin sales. The increase in sponsor fees, which rose to $460,553 from zero in the previous year, also contributed to the overall loss.
In terms of operational metrics, the fund experienced a notable shift in share activity, with 610,000 shares created and 11.4 million shares redeemed during the quarter. This resulted in a net decrease of approximately 10.8 million shares. The fund's investment strategy remains focused on holding bitcoin, with all assets currently allocated to this investment class. The total investment in bitcoin was valued at $480.4 million as of March 31, 2025, down from $826.3 million at the end of the previous year.
Strategically, CoinShares Co. has been the sponsor of the Trust since June 2024, succeeding Valkyrie Digital Assets LLC. This change in sponsorship is part of the Trust's ongoing efforts to enhance its operational framework. The Trust continues to operate as an exchange-traded fund, with shares listed on Nasdaq under the ticker symbol BRRR. The management has indicated that it will continue to monitor market conditions closely and adjust its strategies as necessary to navigate the volatile cryptocurrency landscape.
Looking ahead, the Trust's management remains cautious, acknowledging the inherent risks associated with bitcoin investments and market fluctuations. The forward-looking statements in the filing highlight potential challenges, including changes in market prices, regulatory developments, and operational risks. The Trust's ability to adapt to these factors will be critical in determining its future performance and maintaining investor confidence.
About CoinShares Valkyrie Bitcoin Fund
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