Press release·09/04/2026 07:41:05

Overview of Grayscale Bitcoin Cash Trust

Grayscale Bitcoin Cash Trust (the “Trust”) is a passive investment vehicle that holds Bitcoin Cash (BCH) and issues shares to investors. The Trust’s investment objective is for the value of its shares to reflect the value of the BCH it holds, minus the Trust’s expenses. However, the Trust has struggled to meet this objective, as its share price has often traded at significant premiums or discounts to the underlying value of the BCH.

The Trust is managed by Grayscale Investments, LLC (the “Sponsor”), which is responsible for the day-to-day administration of the Trust. The Trust does not have any employees, officers or directors of its own. Instead, it relies on the Sponsor to handle all operational and financial matters.

Financial Performance

The Trust’s financial performance has been volatile in recent years, largely tracking the fluctuations in the price of BCH.

2026 Fiscal Year

• The Trust reported a net realized and unrealized loss on its BCH investment of $121.6 million for the year ended June 30, 2026.
• This loss was driven by a sharp decline in the price of BCH, which fell from $517.38 per coin at the end of fiscal 2025 to $200.10 per coin by June 30, 2026.
• The net decrease in the Trust’s net assets resulting from operations was $126.4 million for the year.
• Total net assets declined by 62% over the year, from $203.0 million to $76.6 million, due to the BCH price drop and the withdrawal of BCH to pay the Sponsor’s fee.

2025 Fiscal Year

• The Trust reported a net realized and unrealized gain on its BCH investment of $48.6 million for the year ended June 30, 2025.
• This gain was driven by an increase in the price of BCH, which rose from $391.88 per coin at the end of fiscal 2024 to $517.38 per coin by June 30, 2025.
• The net increase in the Trust’s net assets resulting from operations was $45.0 million for the year.
• Total net assets increased by 50% over the year, from $135.0 million to $203.0 million, due to the BCH price appreciation and the contribution of additional BCH from share creations.

2024 Fiscal Year

• The Trust reported a net realized and unrealized gain on its BCH investment of $22.8 million for the year ended June 30, 2024.
• This gain was driven by an increase in the price of BCH, which rose from $302.01 per coin at the end of fiscal 2023 to $391.88 per coin by June 30, 2024.
• The net increase in the Trust’s net assets resulting from operations was $20.3 million for the year.
• Total net assets increased by 47% over the year, from $135.0 million to $135.0 million, due to the BCH price appreciation and the contribution of additional BCH from share creations.

Valuation and NAV

The Trust calculates its net asset value (NAV) per share in two ways:

1. Principal Market NAV: This is based on the price of BCH on the digital asset trading platform that the Trust considers its principal market.
2. Index NAV: This is based on the CoinDesk Bitcoin Cash Benchmark Rate, which is an average of prices from multiple digital asset trading platforms.

As of June 30, 2026, the Principal Market NAV per share was $1.62, while the Index NAV per share was $1.63. This difference highlights the challenge the Trust has faced in consistently tracking the underlying value of its BCH holdings.

The chart in the report shows that the Trust’s share price, as represented by the Principal Market NAV per share, has often traded at significant premiums or discounts to the Index NAV per share over time. This disconnect between the share price and the underlying asset value has been a persistent issue for the Trust.

Liquidity and Cash Flow

The Trust does not maintain any cash balances. When it needs to sell BCH to pay expenses, the Sponsor endeavors to sell only the exact amount needed, in order to minimize the Trust’s holdings of assets other than BCH.

The Trust is not aware of any trends, demands, conditions or events that are likely to result in material changes to its liquidity needs. Its only regular expense is the Sponsor’s Fee, which the Sponsor has agreed to assume in exchange for the fee.

Cybersecurity

The Sponsor maintains a comprehensive cybersecurity program to prevent, detect and respond to information security threats. This program is overseen by a dedicated Chief Information Security Officer with extensive experience in financial services risk management.

Key elements of the cybersecurity program include:

• Regular reporting to the Sponsor’s Enterprise Risk Committee and Board of Managers
• Annual independent third-party cyber risk assessments
• Employee security awareness training and testing
• Third-party risk management processes

During the 2026 fiscal year, the Sponsor did not identify any cybersecurity threats that materially affected or were likely to affect the Trust’s business, operations or financial condition. However, the Sponsor acknowledges that not every cybersecurity incident can be prevented or detected, and the likelihood or severity of such risks are difficult to predict.

Legal Proceedings

Grayscale Operating, LLC, the Trust’s former co-sponsor, was a party to certain legal proceedings during the period covered by this report. Although the Trust itself is not a party to these proceedings, it may be subject to legal disputes in the future.

Specifically, Genesis Global Capital, LLC and Genesis Asia Pacific Pte. Ltd. filed a complaint against Digital Currency Group, Inc. and certain affiliates, including Grayscale Operating, LLC, alleging preferential transfers of BCH and Ethereum Classic tokens prior to Genesis Capital’s bankruptcy filing. Grayscale Operating, LLC believes this lawsuit is without merit and intends to vigorously defend against it.

As of the date of the report, the Sponsor does not expect these legal proceedings to have a material adverse effect on the Trust’s business, financial condition or results of operations. However, the Sponsor and/or the Trust may be subject to additional legal proceedings and disputes in the future.

Outlook and Risks

The performance of the Trust will continue to be heavily influenced by the price movements of BCH. Shareholders should be aware that past price movements do not necessarily indicate future performance, as the BCH market can be volatile and influenced by a variety of factors.

Some key risks facing the Trust include:

• The potential discontinuation of the Sponsor’s services, which could lead to the Trust’s termination
• The lack of independent advisers representing investors’ interests in the Trust
• The potential for the Trust’s share price to trade at significant premiums or discounts to the underlying BCH value
• Cybersecurity threats that could disrupt the Sponsor’s operations or the broader digital asset ecosystem

Overall, the Grayscale Bitcoin Cash Trust has experienced significant swings in its financial performance in recent years, largely tracking the volatility in the BCH market. While the Trust has struggled to consistently meet its investment objective, the Sponsor maintains robust cybersecurity measures and is prepared to defend the Trust against any legal challenges. However, shareholders should carefully consider the risks involved before investing in the Trust.