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Grayscale Stellar Lumens Trust issues new shares

Published 02/10/2024, 06:32 am
XLM/USD
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Grayscale Stellar Lumens Trust (XLM), a digital currency investment product, has announced the issuance of 76,000 new shares to accredited investors, as per a recent filing with the Securities and Exchange Commission. The shares were sold in private placement transactions exempt from registration under the Securities Act of 1933, according to the Trust's Form 8-K filed on Tuesday.

These shares were issued at variable prices that were determined by the net asset value (NAV) per share. The transactions resulted in the acquisition of an aggregate of 6,574,134.8764865 XLM, equivalent to approximately $648,787. Following this issuance, the Trust now has 1,224,400 shares outstanding as of today.

The private placements were facilitated by Grayscale Securities, LLC, which acted as the Authorized Participant. The company is responsible for the distribution and marketing of the shares and, as such, may be considered an "underwriter" under the Securities Act. It is important to note that no underwriting discounts or commissions were paid in connection with these transactions.

This development is part of the Trust's ongoing activities, where shares are created and issued periodically, potentially constituting a continuous distribution. Grayscale Stellar Lumens Trust, which is structured as a Delaware statutory trust, is sponsored by Grayscale Investments, LLC, and focuses on investment in Stellar Lumens, a cryptocurrency designed for facilitating cross-border transactions.

The Trust's operations are subject to the regulations of the Securities Exchange Act of 1934, and the latest report was duly signed by Edward McGee, Chief Financial Officer of Grayscale Investments, LLC, the Sponsor of the Trust.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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