Found these tiny cups filled with little grey ‘eggs’ growing in the mulch. They are smaller than a dime. Anyone know what they are?

cup acts as a splash cup, meaning that when a raindrop hits the cup, it causes the peridioles (‘eggs’) to be ejected from the cup.

This method of dispersal relies on the kinetic energy of falling raindrops to effectively scatter the spores over a wide area. Once ejected, the peridioles are often carried further by wind or adhere to passing animals, increasing their distribution range.

Bird’s Nest Fungi thrive in environments rich in organic material, such as mulch and wood chips. These substrates provide the necessary nutrients for the fungi to grow and reproduce. The decomposition of organic material releases nutrients that the fungi use as food.

Additionally, these fungi prefer damp conditions, which is why they are commonly found in shaded areas with consistent moisture. This preference for moisture helps to explain their presence in garden beds