Osprey Bitcoin Trust Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand how Osprey Bitcoin Trust (OBTC) performed this year. My goal is to explain the financial details clearly so you can decide if this investment fits your goals.

1. What does this company do?

Think of the Osprey Bitcoin Trust as a digital vault. Instead of buying and storing Bitcoin yourself—which can be risky and technical—you can buy shares of this Trust on the Nasdaq. The Trust’s job is to hold Bitcoin for you. As of the last fiscal year, the Trust held about 2,300 Bitcoin. When you own a share, you own a tiny slice of that vault, minus the management fees.

2. How they make money (and what it costs you)

The Trust doesn't sell products. Its value depends entirely on the price of Bitcoin. If Bitcoin’s price rises, your shares generally rise. If it drops, your shares drop.

The Trust charges a 0.49% annual management fee. This covers business costs like auditors, legal teams, and the custodian (Coinbase Custody) that keeps the digital keys safe. The Trust pays this fee daily by selling a small amount of its Bitcoin. This slightly reduces the amount of Bitcoin your shares represent over time. This year, the Trust spent about $450,000 on these operating costs.

3. Major Wins and Changes

The biggest news is that the Trust listed its shares on the Nasdaq on December 19, 2025. Before this, you could only buy shares on the OTC markets, which are less accessible and have less oversight.

Since moving to the Nasdaq, the Trust tracks Bitcoin’s performance more accurately. They now use the CME CF Bitcoin Reference Rate (BRR) to track prices. This index uses data from major exchanges like Coinbase and Kraken to ensure the price is fair and hard to manipulate. This change has helped the share price stay closer to the actual value of the Bitcoin held in the vault.

4. Financial Health and Risks

The Trust is a passive investment, but keep these risks in mind:

• Price Volatility: Your investment depends on the crypto market. Bitcoin prices can drop by more than 50% in a year, which directly lowers your share value.
• The Price Gap: Sometimes, the share price doesn't match the value of the Bitcoin in the vault. Shares may trade for less than the Bitcoin is worth if more people are selling than buying.
• Security: You are trusting the Sponsor and the Custodian to keep the digital keys safe. The Custodian uses "cold storage," keeping keys offline to prevent hacking. If keys are lost or stolen, the Bitcoin could be gone forever.
• Network Risks: The Bitcoin network faces risks like software splits or cyberattacks. If the network splits, the Trust does not keep the new "forked" coins. The Sponsor usually sells these and uses the cash to pay expenses.

Final Thought for Investors: Before you decide to invest, ask yourself if you are comfortable with the inherent volatility of Bitcoin. Because this Trust is a direct reflection of Bitcoin's market price, it is best suited for those who want exposure to the asset without the technical burden of managing a digital wallet, while accepting the risks that come with holding a digital-only asset.