Simon Koster

About Simon Koster

Simon Koster was appointed on October 13, 2025 as a Director of the Board of GSO Intermediate Holdings Corporation (GSOIH), the sole managing member of Grayscale Operating, LLC, which is the sole member of Grayscale Investments Sponsors, LLC—the Sponsor that manages Grayscale Bitcoin Cash Trust (BCHG) . He is Chief Strategy Officer at Digital Currency Group (DCG), leading investments across a portfolio of digital assets, subsidiaries, and 250+ early-stage companies in 35+ countries; he holds a B.S. from Rutgers University and a Master’s degree in Engineering from the University of Michigan . Age is not disclosed in SEC filings.

Past Roles

External Roles

Board Governance

• BCHG is a Delaware statutory trust managed by its Sponsor, not a traditional corporation; shareholders have limited voting rights and do not elect or remove directors, underscoring Sponsor-led control over trust operations .
• The August 4, 2025 8‑K indicated Grayscale’s Board expansion and consideration of adding independent directors; Barry Silbert returned as Board Chairman, reinforcing DCG/Grayscale control across the structure that governs BCHG .
• Consent solicitation (DEF 14A, Sept. 25, 2025) sought four amendments that centralize Sponsor authority: daily accrual/payment mechanics for Sponsor’s Fee, cash creations/redemptions via liquidity providers, omnibus accounts at the Custodian’s affiliate, and enabling amendments with notice instead of shareholder consent (with 20-day notice), including certain tax-related amendments subject to counsel opinion—reducing direct shareholder veto rights over adverse changes .
• Redemption remains at Sponsor’s sole discretion pending regulatory approval; historically, lack of redemption and Rule 144 constraints have led to persistent premiums/discounts vs. NAV per Share, elevating governance risk for public holders .

Other Directorships & Interlocks

• Koster’s roles across DCG affiliates (Foundry, Luno, Fortitude, Yuma) and his DCG CSO position create interlocks throughout entities connected to Grayscale, the Sponsor of BCHG .
• These interlocks suggest non-independence relative to DCG/Grayscale, raising potential conflict-of-interest concerns for decisions affecting BCHG’s Sponsor-managed structure .

Expertise & Qualifications

• Strategic investment leadership across digital assets and venture portfolios (DCG CSO); oversight of operational scaling in crypto infrastructure (Foundry/Luno) .
• Deep real estate and development execution experience (JDS Development Group, The Collective; DCG real estate), indicating operational and capital project expertise .
• Education: B.S. (Rutgers), Master’s in Engineering (University of Michigan) .

Equity Ownership

• BCHG filing notes: “To the knowledge of the Sponsor, no person owns more than 5% of the outstanding Shares.” Director-specific holdings are not disclosed; executives/directors are generally permitted to invest in Grayscale products on the same terms as similarly situated investors .

Governance Assessment

• Independence status: Koster is a current DCG executive (CSO) and director across multiple DCG affiliates, which are affiliated with Grayscale—the Sponsor managing BCHG. This indicates he is not independent of the controlling shareholder ecosystem, heightening related‑party influence risks .
• Shareholder rights dilution risk: Proposal 4 enables Sponsor‑driven amendments effective with notice (20 days) instead of majority shareholder consent for material adverse changes, potentially disenfranchising shareholders and constraining recourse beyond sale/redemption timing .
• Operational/custody risk shift: Proposal 3 permits omnibus accounts at the Custodian’s affiliate to facilitate creations/redemptions. BCH held in such accounts could leave the Trust as an unsecured creditor if the prime broker becomes insolvent, introducing counterparty risk to Trust assets .
• Fee cadence change: Proposal 2 moves Sponsor’s Fee to daily payability (already accruing daily), increasing administrative frequency; Sponsor retains discretion on timing of BCH withdrawals for fees .
• Market-structure risk persists: No ongoing redemption program and Rule 144 constraints have historically produced substantial premiums/discounts to NAV per Share, impairing alignment between market price and underlying BCH value for public holders .
• RED FLAGS:
  • Non‑independent director interlocks within DCG/Grayscale ecosystem .
  • Sponsor-empowering amendments with reduced consent thresholds (Proposal 4) .
  • Custody commingling via omnibus accounts with unsecured creditor exposure in insolvency scenarios (Proposal 3) .
  • Structural lack of redemption program and shareholder voting limitations .

Implication for investor confidence: The governance architecture centralizes control at the Sponsor/DCG level (with Koster in senior DCG leadership), while recent proposals further entrench Sponsor discretion. The combination of limited shareholder rights, absence of routine redemptions, and custody/fee mechanic changes increases reliance on Sponsor conduct and DCG governance quality rather than board independence, elevating monitoring requirements and discount/premium risk for public investors .