Grayscale Bittensor Trust (TAO) 8-K

What Happened

• Grayscale Bittensor Trust (TAO) filed an 8-K on January 16, 2026 reporting that, following shareholder consent, the Sponsor (Grayscale Investments Sponsors, LLC) and Trustee (CSC Delaware Trust Company) executed a Second Amended and Restated Declaration of Trust and Trust Agreement dated January 12, 2026.
• Shareholders approved seven proposals via a consent solicitation that began December 8, 2025; the consent period (and any revocation window) closed at 4:00 p.m. New York City time on December 28, 2025.

Key Details

• Proposal to permit staking: the Sponsor may cause the Trust to stake a portion of TAO through Bittensor’s proof-of-stake validation protocol, subject to conditions tied to the Trust’s qualification as a U.S. federal grantor trust.
• Staking economics and consideration: the Trust may accept staking consideration and, for a limited time, hold non-TAO consideration received from staking; the Sponsor may also receive a Sponsor’s Staking Fee for facilitating staking.
• Creation/redemption and fees: amendments authorize cash creations/redemptions of baskets (not only in-kind TAO transfers) and change the Sponsor’s Fee to be paid daily in arrears.
• Custody mechanics: the Trust may hold some TAO in omnibus accounts maintained by the Custodian to facilitate creations and redemptions. The full Second A&R Trust Agreement is attached as Exhibit 4.1 to the 8-K.

Why It Matters

• These changes enable the Trust to pursue staking activity that could generate additional yield for the Trust, but introduce new operational, custody and tax considerations (the staking authority is subject to preserving grantor-trust tax status).
• New fee and mechanics (staking fee, daily Sponsor fee, cash creation/redemption, omnibus custody) can affect investor costs, liquidity and how creations/redemptions are processed—important for shareholders, authorized participants, and prospective investors to note.
• The amendments are effective following unanimous shareholder consent (shareholders holding 100% of outstanding shares consented) and the executed Second A&R Trust Agreement, so the Trust now has contractual authority to implement these changes per the filing.