Grayscale Bitcoin Cash Trust Files 2024 10-K

TL;DR

Grayscale BCH Trust 2024 10-K filed. All systems go for Bitcoin Cash holdings.

AI Summary

Grayscale Bitcoin Cash Trust (BCH) filed its 10-K for the fiscal year ending June 30, 2024. The trust, formerly known as Bitcoin Cash Investment Trust, reported its financial position and operational details. The filing covers the period up to June 30, 2024, and includes information on its investments in Bitcoin Cash.

Why It Matters

This filing provides investors with a comprehensive overview of the Grayscale Bitcoin Cash Trust's financial health and investment performance for the fiscal year 2024.

Risk Assessment

Risk Level: medium — The trust's value is directly tied to the volatile price of Bitcoin Cash, exposing it to significant market risk.

Key Numbers

• 0630 — Fiscal Year End (Indicates the end of the reporting period for the 10-K filing.)
• 20240630 — Reporting Period End Date (The specific date up to which financial information is reported.)
• 20240906 — Filing Date (The date the 10-K was officially submitted to the SEC.)

Key Players & Entities

• Grayscale Bitcoin Cash Trust (BCH) (company) — Filer of the 10-K
• Bitcoin Cash Investment Trust (company) — Former name of the trust
• 20240630 (date) — Fiscal year end date
• 290 Harbor Drive, 4th Floor, Stamford, CT 06902 (address) — Business and mail address
• 212 668 1427 (phone_number) — Business phone number

FAQ

Key Financial Figures

• $55.1 million — oin Cash and Bitcoin were approximately $55.1 million and $6.3 billion, respectively. As of J
• $6.3 b — in were approximately $55.1 million and $6.3 billion, respectively. As of June 30, 202
• $7.8 b — value of Bitcoin Cash was approximately $7.8 billion, as compared to the $1,235.9 bill
• $1,235.9 billion — mately $7.8 billion, as compared to the $1,235.9 billion aggregate value of Bitcoin. As of June

Filing Documents

• bchg-20240630.htm (10-K) — 2169KB
• bchg-ex31_1.htm (EX-31.1) — 21KB
• bchg-ex31_2.htm (EX-31.2) — 21KB
• bchg-ex32_1.htm (EX-32.1) — 7KB
• bchg-ex32_2.htm (EX-32.2) — 7KB
• img197373456_0.jpg (GRAPHIC) — 273KB
• img197373456_1.jpg (GRAPHIC) — 242KB
• img197373456_2.jpg (GRAPHIC) — 211KB
• 0000950170-24-104235.txt ( ) — 6823KB
• bchg-20240630.xsd (EX-101.SCH) — 372KB
• bchg-20240630_htm.xml (XML) — 693KB

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains "forward-looking statements" with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Grayscale Bitcoin Cash Trust (BCH) (the "Trust"). Statements preceded by, followed by or that include words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Annual Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust's operations, the plans of Grayscale Investments, LLC (the "Sponsor") and references to the Trust's future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to, those described in "Part I. Item 1A. Risk Factors." Forward-looking statements are made based on the Sponsor's beliefs, estimates and opinions on the date the statements are made and neither the Trust nor the Sponsor is under a duty or undertakes an obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other than as required by applicable laws. Investors are therefore c

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 46 Item 1B. Unresolved Staff Comments 78 Item 1C. Cybersecurity 78 Item 2.

Properties

Properties 79 Item 3.

Legal Proceedings

Legal Proceedings 79 Item 4. Mine Safety Disclosures 79 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 80 Item 6. [Reserved] 80 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 81 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 87 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 87 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 88 Item 9A.

Controls and Procedures

Controls and Procedures 88 Item 9B. Other Information 88 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 88 PART III Item 10. Directors, Executive Officers and Corporate Governance 89 Item 11.

Executive Compensation

Executive Compensation 90 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 90 Item 13. Certain Relationships and Related Transactions and Director Independence 91 Item 14. Principal Accountant Fees and Services 93 PART IV Item 15. Exhibits and Financial Statement Schedules 94 Item 16. Form 10-K Summary 95 Glossary of Defined Terms 96 iv PART I

B usiness

Item 1. B usiness Overview of the Trust and the Shares Grayscale Bitcoin Cash Trust (BCH) (the "Trust") is a Delaware Statutory Trust that was formed on January 26, 2018 by the filing of the Certificate of Trust with the Delaware Secretary of State in accordance with the provisions of the Delaware Statutory Trust Act. The Trust's purpose is to hold BCH. Bitcoin Cash, an alternative software implementation of Bitcoin, was created in 2017 by a group of Bitcoin miners resulting in a hard fork of Bitcoin. Although Bitcoin Cash is very similar to Bitcoin, there are several key differences between the Bitcoin Cash Network and the Bitcoin Network. The fundamental difference between Bitcoin and Bitcoin Cash is the maximum block size used by each network. Bitcoin uses the SHA-256 algorithm, which is preferred for parallel processing, but is also easily used to build application-specific integrated circuits (ASICs) to mine the network more efficiently. Like Bitcoin, Bitcoin Cash employs the SHA-265 algorithm, which results in the network competing with Bitcoin for miner hash rate. Bitcoin Cash has a current block size of 32MB compared to 1MB on the Bitcoin Network. Bitcoin Cash blocks are also generated every ten minutes, approximately the same rate as Bitcoin's block production. Due to the roughly equal block production rates, Bitcoin Cash halvings also take place approximately every four years, occurring every 210,000 blocks, like Bitcoin. The Bitcoin Cash mining difficulty is also roughly one one-hundredth of Bitcoin's, making it significantly easier to mine blocks and earn rewards. Additionally, Bitcoin Cash and Bitcoin both have a maximum supply of 21 million coins. Bitcoin Cash has a current circulating supply of 19.7 million coins, which is approximately the same as Bitcoin's circulating supply. As of June 30, 2024, the 24-hour trading volume of Bitcoin Cash and Bitcoin were approximately $55.1 million and $6.3 billion, respectively. As of June 30, 2024, the aggr

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View this 10-K filing on SEC EDGAR