First of all it is a little strange to start a naive calculation with the ad hoc speed of $(1-10^{-38})c$. This is obviously very close to speed of light, and the closer you get, the higher the energy of the particle is. Particle physicists usually give the energy of a particle in electronvolts, and if I did not make a mistake, the momentum you gave corresponds to an energy (via $E=pc$, neglecting the mass at such high momentum) of around $10^{27}\mathrm{eV}$. This is even ten million times more energy than the highest energy cosmic rays (also mostly protons) that have been found, while these already have much higher energies than the particles in colliders. There is no known mechanism that could give protons the energy you consider, actually there is not even a known mechanism that explains the highest energy cosmic rays. Cosmic rays hit us all the time. (Although most of them are of 'medium' energy.)
Nevertheless, the process that happens if these particles hit matter, e.g. living materials like wood or tissue is the similar for different energy ranges: There is a certain probability that it will interact with another particle inside the wood/metal/tissue, via the rules of relativistic quantum mechanics, i.e. quantum field theory, and by that the resulting particles produce a lot of secondary and tertiary (and so on) particles, since all the kinetic energy can be converted to mass of other particles. This is similar to the chain reaction you mentioned, but especially in wood I would not know how this could start a 'fission' i.e. nuclear chain reaction. As you mentioned, the high energy leads to a small deBroglie wavelength, which I would think implies that the interaction will happen with individual nucleons, like another proton or a neutron, and not with a whole nucleus. In living tissue these highly kinetic particles can disintegrate molecules and therefore actually destroy cells, which is of course not healthy if it happens in too many cells at once, but as I mentioned, it basically happens all the time. I would not know how a single particle could cause a macroscopic visible 'bullet hole', no matter how high it's energy is, since then it would need to interact with many atoms that are close kind of in sync, and I do not know how that would be possible.
EDIT: I just looked up that the usual beam in the LHC contains all together (it consists of a LOT of particles) around 350 MJ. This is actually roughly the amount of energy you considered for your ONE particle in your question. When the beam is dumped into many tons of metal, the room they shoot it in heats to $800^{\circ}C$. See here for a reference in German. So I think such a ridiculous high energetic particle could lead to so much kinetic energy in the resulting particles that just the heat, which in the end of course comes from the particle interactions, destroys the whole wood block, but this only happens if enough of the resulting particles actually interact within the woodblock.