Grayscale Litecoin Trust (LTCN) reported a challenging QQ3 2022 quarter, characterized by negative revenue and a quarterly loss, despite a balance sheet that reflects a large asset base. Key metrics show revenue of -$28,498, EBITDA of -$32,334, and net income of -$32,334, or -$0.21 per share on 153,971 weighted-average shares. Operating income remained flat at $0. The quarter’s profitability weakness appears driven by expense recognition within a vehicle whose primary value is the LTC holdings reflected in long-term investments, rather than traditional operating revenues. The balance sheet indicates total assets of $290.6 million, entirely represented by long-term investments, with stockholders’ equity of $290.6 million, suggesting the NAV is linked to the underlying LTC position rather than cash-generating operations.
From a cash-flow perspective, depreciation and amortization were reported at -$60.7 million ( quarterly) with a corresponding change in working capital of +$31.3 million, but explicit net cash from operating activities is not disclosed in the available data. This leaves liquidity dynamics and the timing of real cash generation less transparent in QQ3 2022. Given LTCN’s mandate to track LTC value net of expenses, investors should focus on the performance of the LTC price, sponsor/management fees, and the degree to which the NAV tracking aligns with the per-share market price.
Compared with crypto-asset peers and listed Grayscale products, LTCN operates in a highly volatile, fee-driven space where valuation and liquidity are sensitive to broader crypto markets and regulatory developments. The quarter underscores the importance of monitoring NAV-tracking accuracy, fee structure, and redemption/creation activity, in addition to LTC price moves, to gauge investment merit going forward.