Grayscale Litecoin Trust (LTCN) reports for QQ4 2022 show a highly capital-light, crypto-tracking vehicle with no reported revenue and minimal disclosed operating cash flows. In the four-quarter data set, depreciation and amortization (D&A) is shown as 25.52 million USD for Q4 2022, with EBITDA also recorded at 25.52 million USD in that same period, alongside a weighted average shares outstanding of 16.244 million. The balance sheet paints a lean picture: total assets of 79,397 USD and cash and short-term investments of 79,397 USD, implying the trust holds cash and LTC-related assets but without a sizable accrual base or operating earnings. The enterprise value multiple is recorded as negative 1.189, suggesting a substantial discount relative to reported metrics, which is typical for a passive LTC tracking vehicle with limited upside from internal profitability.
Key Performance Indicators
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed / N/A; Cost of Revenue: 0.00; Gross Profit: N/A; Net Income: N/A; EPS: N/A.
Depreciation and Amortization (D&A): -33,558,000.00 in the income block (Q3 2022 data) and +25,520,000.00 in the Q4 2022 quarterly data (four-quarter view).
EBITDA: -33,558,000.00 (Q3 2022) and +25,520,000.00 (Q4 2022 four-quarter view).
Weighted Average Shares Outstanding: 16,244,000.
Total Assets: 79,397; Total Current Assets: 79,397; Short-Term Investments: 79,397; Cash per share: 0.00489.
Financial Highlights
Snapshot of available quarterly metrics and balance-sheet signals:
- Revenue: Not disclosed / N/A; Cost of Revenue: 0.00; Gross Profit: N/A; Net Income: N/A; EPS: N/A.
- Depreciation and Amortization (D&A): -33,558,000.00 in the income block (Q3 2022 data) and +25,520,000.00 in the Q4 2022 quarterly data (four-quarter view).
- EBITDA: -33,558,000.00 (Q3 2022) and +25,520,000.00 (Q4 2022 four-quarter view).
- Weighted Average Shares Outstanding: 16,244,000.
- Total Assets: 79,397; Total Current Assets: 79,397; Short-Term Investments: 79,397; Cash per share: 0.00489.
- Enterprise Value Multiple: -1.189.
- Liquidity snapshot: Cash and short-term investments = 79,397 USD; no line items for cash equivalents beyond that figure; liabilities are not disclosed in the available data.
Income Statement
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Value
YoY Change
QoQ Change
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights could not be compiled because the earnings transcripts were not provided in the data set. No management call commentary or quotes are available to contextualize quarterly developments or confirm forward guidance. Investors should note the absence of call transcripts limits the ability to gauge management’s qualitative view on LTCN’s tracking efficiency, fee structure, or near-term catalysts.
N/A due to unavailable transcript data.
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N/A due to unavailable transcript data.
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Forward Guidance
No explicit forward guidance was published in the provided data. Given LTCN’s structure as a Grayscale trust designed to reflect LTC value net of expenses, the near-term trajectory hinges on (a) the path of LTC pricing and market demand for Grayscale crypto investment products, (b) the sponsor/management fee framework, and (c) evolving regulatory and market conditions affecting OTC-traded crypto vehicles. In the absence of stated targets, investors should monitor: (i) any changes to expense ratios or sponsor fees, (ii) liquidity dynamics in OTC trading, (iii) LTC price volatility and correlation to LTCN value, and (iv) potential disclosures on redemption/creation activity and counterparty risk. Our qualitative read is that the key value driver remains LTC price movements rather than internal earnings growth.
Competitive Position
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Gross Profit Margin
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Return on Equity
P/E Ratio Comparison
Investment Outlook
Quantitative signals are constrained by the lack of disclosed revenue and net income, and the balance-sheet modesty suggests LTCN’s value proposition is primarily the LTC price exposure rather than corporate earnings power. The negative or ambiguous EBITDA signals in some data blocks versus positive D&A/EBITDA in others indicate data integrity concerns that must be resolved before a rigorous investment thesis can be established. From a qualitative lens, the investment case for LTCN rests on LTC price appreciation and sustained demand for Grayscale’s LTC-tracking vehicle, tempered by structural fees and crypto-asset regulatory risk. Investors should treat LTCN as a niche instrument for LTC beta exposure, not as a source of standalone earnings growth. Key factors to monitor include LTC price dynamics, changes in Grayscale’s fee structure, liquidity in OTC trading, and any management commentary that clarifies forward-looking targets or catalyst events.
Key Investment Factors
Growth Potential
Limited standalone earnings growth due to the fund’s design as a passive LTC proxy with a fixed fee structure; growth potential is primarily tied to increased demand for LTC exposure through Grayscale products and broader Crypto assets adoption.
Profitability Risk
Primary risks include crypto price volatility (LTC), regulatory developments affecting crypto investment vehicles, potential liquidity constraints in OTC trading, and the sponsor/fees framework that erodes tracking efficiency relative to LTC on per-share terms.
Financial Position
Very small balance sheet with total assets of 79,397 USD and cash/short-term investments of 79,397 USD; no disclosed long-term debt or liabilities; lack of revenue generation and limited disclosure of earnings metrics imply fragile operating leverage and reliance on price appreciation of LTC for investment value.
SWOT Analysis
Strengths
Passive LTC exposure with regulated vehicle structure (Grayscale brand) and clear objective to reflect LTC value net of expenses.
Extremely transparent cash/balance snapshot with cash-like liquidity (short-term investments set at 79,397 USD).
Low complexity relative to more active crypto funds; potential ease of access for LTC-focused investors in the OTC space.
Weaknesses
No disclosed revenue or net income, raising questions about profitability drivers and overall value creation.
Very small balance sheet with limited assets and no visible operating cash flow; heavy reliance on LTC price movements.
Data inconsistencies across sources (e.g., D&A figures in income block vs. four-quarter view) complicate earnings interpretation.
No transcript data to contextualize management commentary or near-term catalysts.
Opportunities
Growing investor demand for regulated LTC exposure could expand LTCN's issuance and trading liquidity over time.
Potential product enhancements or fee optimization by Grayscale could improve tracking efficiency and investor returns.
Broader market adoption of crypto investment products may lift OTC-traded trusts like LTCN.
Threats
Crypto price volatility and Litecoin-specific risk could disproportionately impact reflecting value.
Regulatory scrutiny of crypto investment vehicles could constrain product flexibility or liquidity.
Competition from alternative LTC exposure vehicles or fee-competitive products could erode market share.