It grows uniquely on the wood of American beech (Fagus grandifolia) in North America.
Its growth structure is immersed, popping out from under the bark in scattered green fruiting bodies which soon fade to black.
[1] The green circular fruiting bodies with the black grooved ostioles popping out gregariously make D. virescens an easy to identify member of Diatrype.
Biscogniauxia marginata is the most likely to be confused with older specimens of D. virescens that have lost their green colour.
B. marginata can be distinguished by its larger size (3-8mm in diameter), and its tendency to grow on trees in the Rosaceae family rather than Fagus grandifolia.