Grayscale Bitcoin Cash Trust announces sponsor reorganization

Grayscale Bitcoin Cash Trust (OTCQX:BCHG), a $179 million market cap trust that has seen its shares decline over 56% in the past year according to InvestingPro data, reported an internal corporate reorganization involving its sponsor, Grayscale Investments Sponsors, LLC, according to a statement filed with the Securities and Exchange Commission.

On Wednesday, GSO Intermediate Holdings Corporation, previously the sole managing member of Grayscale Operating, LLC, completed a reorganization. As part of this process, GSO Intermediate Holdings transferred part of its membership units in Grayscale Operating for Class A shares of Grayscale Investments, Inc., a newly incorporated Delaware corporation. Managing member rights in Grayscale Operating were also ceded to Grayscale Investments.

Following the reorganization, Grayscale Investments became the sole managing member of Grayscale Operating, which remains the sole member of Grayscale Investments Sponsors, LLC—the sponsor of Grayscale Bitcoin Cash Trust.

Also on Wednesday, DCG Grayscale Holdco, LLC, the sole stockholder of Grayscale Investments, elected a board of directors for Grayscale Investments. The board members are Barry Silbert, Mark Shifke, Simon Koster, Peter Mintzberg, and Edward McGee, who previously served as directors of GSO Intermediate Holdings. Barry Silbert is chairperson of the board. Peter Mintzberg and Edward McGee retain their authority as officers of the sponsor under its limited liability company agreement.

DCG Grayscale Holdco, Grayscale Investments, GSO Intermediate Holdings, Grayscale Operating, and Grayscale Investments Sponsors are all consolidated subsidiaries of Digital Currency Group, Inc.

The trust stated in the SEC filing that it does not expect the reorganization to have any material impact on its operations. While the stock has shown recent momentum with a 30% gain over the past six months, InvestingPro analysis indicates a weak financial health score of 1.48, suggesting potential challenges ahead. InvestingPro subscribers have access to additional insights and metrics to better evaluate the trust’s prospects.

This information is based on a press release statement contained in the SEC filing.

In other recent news, Grayscale Bitcoin Cash Trust has announced a change in its board of directors. Simon Koster has been appointed to the board of GSO Intermediate Holdings Corporation, replacing Matthew Kummell, who has stepped down. This development was revealed in a statement following a filing with the Securities and Exchange Commission. Koster is currently the Chief Strategy Officer at Digital Currency Group, Inc., where he oversees a diverse investment portfolio that includes digital assets and early-stage companies. His previous roles include CEO of Real Estate at Digital Currency Group and CEO at The Collective. He also has extensive experience from his decade-long tenure at JDS Development Group, focusing on various projects in New York City and Miami. These recent changes reflect ongoing developments within Grayscale Bitcoin Cash Trust.

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