Grayscale Bitcoin Cash Trust (BCH) Files 10-Q for Period Ended December 31, 2023

TL;DR

<b>Grayscale Bitcoin Cash Trust (BCH) has filed its Q2 2023 10-Q report, detailing its financial activities and holdings for the period ending December 31, 2023.</b>

AI Summary

Grayscale Bitcoin Cash Trust (BCH) (BCHG) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. The Grayscale Bitcoin Cash Trust (BCH) filed a 10-Q report for the quarterly period ended December 31, 2023. The filing covers the period from July 1, 2023, to December 31, 2023. The Trust is sponsored by Grayscale Investments, LLC. The Trust's shares trade under the symbol BCHG. The company was formerly known as Bitcoin Cash Investment Trust, with a name change on February 22, 2018.

Why It Matters

For investors and stakeholders tracking Grayscale Bitcoin Cash Trust (BCH), this filing contains several important signals. This 10-Q filing provides investors with crucial updates on the Trust's performance and asset valuation as of the end of the second fiscal quarter of 2023. Understanding the details within this report is essential for assessing the current state and potential future performance of the Grayscale Bitcoin Cash Trust (BCH).

Risk Assessment

Risk Level: low — Grayscale Bitcoin Cash Trust (BCH) shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant financial distress signals or major operational changes that would elevate the risk profile beyond typical market fluctuations for a cryptocurrency trust.

Analyst Insight

Monitor future filings for changes in the Trust's net asset value, Bitcoin Cash holdings, and any updates on regulatory developments impacting cryptocurrency trusts.

Key Numbers

• 2023-12-31 — Period End Date (Quarterly Report)
• 2024-02-07 — Filing Date (10-Q Filing)
• 000-56308 — Commission File Number (SEC Filing)
• 82-6867376 — IRS Number (Registrant)

Key Players & Entities

• Grayscale Bitcoin Cash Trust (BCH) (company) — Registrant
• Grayscale Investments, LLC (company) — Sponsor
• BCHG (company) — Trading Symbol
• Bitcoin Cash Investment Trust (company) — Former Company Name
• Delaware (company) — State of Incorporation
• 2023-12-31 (date) — Period End Date
• 2024-02-07 (date) — Filing Date

FAQ

Risk Factors

• Regulatory Uncertainty [medium — regulatory]: The Trust operates in a rapidly evolving regulatory landscape for digital assets, which could impact its operations and the value of its holdings.
• Volatility of Bitcoin Cash [high — market]: The value of the Trust is directly tied to the price of Bitcoin Cash, which is known for its high volatility, posing a risk to investors.
• Custody and Security Risks [medium — operational]: Risks associated with the custody and security of the underlying Bitcoin Cash assets held by the Trust.

Key Dates

• 2023-12-31: Quarterly Period End — Marks the end of the reporting period for the 10-Q filing.
• 2024-02-07: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure by public companies. (Provides investors with essential financial and operational updates on a quarterly basis.)

Filing Documents

• bchg-20231231.htm (10-Q) — 901KB
• bchg-ex31_1.htm (EX-31.1) — 20KB
• bchg-ex31_2.htm (EX-31.2) — 21KB
• bchg-ex32_1.htm (EX-32.1) — 7KB
• bchg-ex32_2.htm (EX-32.2) — 7KB
• img196475883_0.jpg (GRAPHIC) — 340KB
• img196475883_1.jpg (GRAPHIC) — 213KB
• img196475883_2.jpg (GRAPHIC) — 218KB
• 0000950170-24-011962.txt (&nbsp;) — 4677KB
• bchg-20231231.xsd (EX-101.SCH) — 323KB
• bchg-20231231_htm.xml (XML) — 452KB

Forward-Looking Statements

Forward-Looking Statements 3 Industry and Market Data 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Statements of Assets and Liabilities at December 31, 2023 and June 30, 2023 4 Schedules of Investment at December 31, 2023 and June 30, 2023 5 Statements of Operations for the Three and Six Months Ended December 31, 2023 and 2022 6 Statements of Changes in Net Assets for the Three and Six Months Ended December 31, 2023 and 2022 7 Notes to the Unaudited Financial Statements 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27 GLOSSARY OF DEFINED TERMS 28

SIGNATURES

SIGNATURES 32 2 Forw ard-Looking Statements This Quarterly Report on Form 10-Q 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 Quarterly 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" of our Annual Report on Form 10-K and in "Part II, Item 1A. Risk Factors" herein. 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 opini

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION:

Financial St atements (Unaudited)

Item 1. Financial St atements (Unaudited) GRAYSCALE BITCOIN CASH TRUST (BCH) STATEMENTS OF ASSET S AND LIABILITIES (UNAUDITED) ( Amounts in thousands, except Share and per Share amounts) December 31, 2023 June 30, 2023 Assets: Investment in BCH, at fair value (cost $ 112,320 and $ 113,744 as of December 31, 2023 and June 30, 2023, respectively) $ 78,287 $ 92,012 Total assets $ 78,287 $ 92,012 Liabilities: Sponsor's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 78,287 $ 92,012 Net Assets consists of: Paid-in-capital 122,301 122,301 Accumulated net investment loss ( 8,266 ) ( 7,386 ) Accumulated net realized loss on investment in BCH ( 1,715 ) ( 1,171 ) Accumulated net change in unrealized depreciation on investment in BCH ( 34,033 ) ( 21,732 ) $ 78,287 $ 92,012 Shares issued and outstanding, no par value (unlimited Shares authorized) 34,812,900 34,812,900 Principal market net asset value per Share $ 2.25 $ 2.64 See accompanying notes to the unaudited financial statements. 4 GRAYSCALE BITCOIN CASH TRUST (BCH) SCHEDULES OF INVESTMENT (UNAUDITED) ( Amounts in thousands, except quantity of BCH and percentages) December 31, 2023 Quantity of BCH Cost Fair Value % of Net Assets Investment in BCH 300,849.21638342 $ 112,320 $ 78,287 100 % Net assets $ 112,320 $ 78,287 100 % June 30, 2023 Quantity of BCH Cost Fair Value % of Net Assets Investment in BCH 304,664.86473559 $ 113,744 $ 92,012 100 % Net assets $ 113,744 $ 92,012 100 % See accompanying notes to the unaudited financial statements. 5 GRAYSCALE BITCOIN CASH TRUST (BCH) STATEMENTS OF OPERATIONS (UNAUDITED) ( Amounts in thousands) Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Investment income: Investment income $ - $ -