Fidelity Wise Origin Bitcoin Fund (FBTC) is a Delaware Statutory Trust operating as a grantor trust under ASC 946 investment company guidance. Its balance sheet is structurally simple: assets consist almost entirely of bitcoin held in custody, liabilities are limited to accrued sponsor fees and a pending investment purchase payable, and equity equals net assets. Under a liquidation lens, this structure is near-ideal for positive equity recovery — the sole asset is a liquid, exchange-traded commodity with no haircut required beyond market price risk. As of March 31, 2026, total assets were $12.83B, consisting of $12.82B bitcoin at fair value (Level 1 per ASC 820) plus a $16.2M receivable on investment sale. Total liabilities were $18.9M, comprising a $2.6M management fee payable and a $16.2M investment purchase payable. Net assets (equity) were $12.82B. At a 100% recovery rate on bitcoin (liquid, actively traded, no haircut applicable under the liquidation lens), liquidation value to equity approximates NAV: roughly $12.8B, or $59.33 per share. The liability stack is negligible at 0.15% of assets. No leverage, no derivatives, no pension obligations, no operating leases, no long-term debt, no goodwill or intangibles. The only liability risk in a wind-down scenario is the sponsor fee accrual, which extinguishes on termination, and any extraordinary expenses not assumed by the Sponsor — filing does not quantify the latter. Compared to December 31, 2025 (prior 10-K), total net assets declined from $17.64B to $12.82B, a $4.82B decrease driven by: (1) bitcoin price falling 22.1% from $87,463 to $68,130; (2) net share redemptions of 15.4M shares (44.1M redeemed, 28.7M issued); and (3) $8.7M sponsor fee expense. Bitcoin quantity held decreased from 201,684 BTC to 188,144 BTC. The cost basis of the remaining bitcoin is $10.39B versus $12.82B fair value, implying $2.43B of unrealized appreciation still embedded in the position. The filing discusses the Sponsor Fee accrual mechanism and extraordinary expense carve-outs in MD&A but does not separately XBRL-tag the extraordinary expense liability exposure — consistent with no known extraordinary expenses at period end. Recovery posture is straightforward positive: equity recovers essentially at spot bitcoin price times quantity held, net of the immaterial liability stack.
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