Grayscale Bitcoin Trust (BTC) (GBTC) - Stock & Dividends

The Grayscale Bitcoin Trust (GBTC) is a unique investment vehicle that holds a significant amount of Bitcoin. When it comes to financial reporting, the trust values its Bitcoin holdings based on fair market value, adhering to the guidelines set by U.S. generally accepted accounting principles (GAAP).

To determine the fair value of its Bitcoin holdings, the trust relies on the price provided by the Digital Asset Market, which it considers its primary market. This price is obtained as of 4:00 p.m., New York time, on the valuation date, ensuring that the trust's financial statements reflect the most up-to-date and accurate valuation of its Bitcoin assets.

In other words, the trust's Bitcoin holdings are valued based on the current market price of Bitcoin, which is obtained from a trusted and reliable source. This approach ensures transparency and accuracy in the trust's financial reporting, providing investors with a clear picture of the trust's assets and liabilities.

By using the Digital Asset Market as its principal market, the trust is able to tap into a robust and liquid market for Bitcoin, which helps to ensure that its financial statements reflect the true value of its Bitcoin holdings. This approach also helps to maintain investor confidence in the trust's financial reporting and provides a level of transparency that is essential for informed investment decisions.