Thu, May 15, 7:37 PM (38 days ago)
**CoinShares Valkyrie Bitcoin Fund (BRRR) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue and Profit Margins:** The fund's net asset value (NAV) decreased from $826.12 million at the end of 2024 to $480.39 million by March 31, 2025, due to a decrease in the value of bitcoin and a reduction in outstanding shares. - **Cash Flow:** The fund does not hold significant cash balances, relying on bitcoin sales for liquidity needs. The sponsor assumes most expenses, with the primary expense being the sponsor fee. - **Earnings Changes:** The fund reported a net loss of $76.61 million for Q1 2025, compared to a net income of $90.67 million in Q1 2024. This change was driven by a decrease in the value of bitcoin and higher sponsor fees. **Quarterly Performance Discussion:** - **Bitcoin Holdings:** The fund's bitcoin holdings decreased in value by 11.1% during Q1 2025, reflecting the overall market trend. - **Share Activity:** The fund saw 610,000 shares created and 11.42 million shares redeemed during Q1 2025, resulting in a net decrease in outstanding shares. - **Expenses:** Sponsor fees increased to $460,553 for Q1 2025, up from $114,185 in Q1 2024, due to the change in sponsorship. **Trends and Uncertainties:** - **Market Volatility:** The fund's performance is highly dependent on the volatile bitcoin market. Future performance will be subject to market fluctuations. - **Regulatory Environment:** Changes in regulations, particularly those concerning digital assets, could impact the fund's operations and performance. - **Liquidity:** The fund's liquidity is tied to the bitcoin market, and significant redemptions could impact its ability to meet obligations. **Future Operations Impact:** - **Sponsor Fee:** The sponsor fee, accruing at an annual rate of 0.25% of bitcoin holdings, will continue to be a significant expense. - **Market Conditions:** The fund's performance will be influenced by market conditions, including the price of bitcoin and demand for the fund's shares. - **Regulatory Compliance:** The fund must comply with evolving regulations, which could impact its operations and costs.