Grayscale Stellar Lumens Trust XlM

What they do

The Trust is a passive vehicle managed by the Sponsor with no officers, directors or employees; its purpose is to hold XLM. It issues Creation Baskets in exchange for deposits of XLM on a periodic basis and does not accept redemption requests from shareholders. Its objective is for the value of the Shares, based on XLM per Share, to reflect the value of XLM held by the Trust less expenses and liabilities, as determined by the Index Price. The Trust does not use leverage, derivatives or similar arrangements.

Revenue drivers

• XLM price exposure — The Trust's returns and net change in unrealized appreciation or depreciation on investments are driven by changes in the fair value of the XLM it holds; the Trust generates no operating revenue from customers or products.
• Share creations — The Trust receives XLM in connection with Creation Baskets from the Authorized Participant or a Liquidity Provider; the filing does not disclose creation volumes or fee amounts.
• Sponsor's Fee paid in XLM — The Sponsor's Fee is settled in XLM, and realized gains and losses are recognized in connection with settling that obligation in XLM; the filing does not quantify the fee.

Recent performance

Annual net income was $1.8M in 2021, -$12.7M in 2022, -$417,000 in 2023, -$1.6M in 2024, and $30.5M in 2025, per the reported financials. The latest balance sheet shows total assets of $21.8M and total liabilities of $0.00 as of 2026-06-30. The 10-Q MD&A states the Trust has not met its investment objective and that the Shares quoted on OTC Markets have not reflected the value of the XLM held by the Trust less expenses and liabilities, instead trading at both premiums and discounts to such value, at times substantial. At September 30, 2025, the Trust held approximately 0.4% of the XLM supply, per the 10-K. The Trust's 10-Q MD&A describes it as a passive entity that does not itself transact on any Digital Asset Markets.

Strategy

The Trust states it will not utilize leverage, derivatives or any similar arrangements in seeking to meet its investment objective. It continues to be a passive holder of XLM, with the objective that the value of the Shares based on XLM per Share reflects the value of XLM held by the Trust less expenses and liabilities, determined by reference to the Index Price. Creations are made periodically in exchange for deposits of XLM, while redemption requests from shareholders are not being accepted at this time. The filing also describes the Sponsor's process for determining the principal market for XLM under ASC 820-10, based on market-based volume, level of activity and price stability. No other strategic initiatives are described in the excerpts provided.

Risks

• Shares trade away from NAV — The Trust states it has not met its investment objective and that the Shares have traded at premiums and discounts to the value of XLM held, at times substantial.
• No redemption mechanism — The Trust is not accepting redemption requests from shareholders, so shares cannot be redeemed for XLM at net asset value.
• Concentration in a single digital asset — The Trust's entire purpose is to hold XLM, so its value is exposed to the price of one digital asset and its principal use as an intermediary in global foreign exchange transactions has not been widely adopted.
• Supply and distribution by SDF — The 10-K states SDF oversaw the creation of all XLM and continues to oversee distribution of the vast majority of XLM, including plans to distribute remaining holdings for development, use-case investment, user acquisition and ecosystem support.

Outlook

The excerpts provided do not contain management outlook or guidance for future periods. The Trust restates its passive objective that the Shares reflect the value of XLM held less expenses and liabilities, and notes it is not accepting redemption requests. No forward targets, forecasts or new initiatives are disclosed in the source material.