Strive Merges with Asset Entities (ASST) to Go Public and Implement Bitcoin (BTC) Treasury Strategy

Shares of the technology firm Asset Entities (ASST) surged by 194% on Wednesday following the announcement of its merger with Strive Asset Management. This merger positions the new entity as a publicly traded Bitcoin (BTC) Treasury Company on the NASDAQ.

Structured as a reverse merger, the newly formed organization will operate under the Strive name and be listed on NASDAQ. Strive intends to amass a substantial bitcoin reserve utilizing innovative investment and financing methods aimed at minimizing shareholder dilution.

A significant aspect of this strategy involves an equity-for-bitcoin exchange that will be available to select accredited investors. The companies indicated that this exchange will leverage a tax provision referred to as Section 351, allowing for the tax-free transfer of appreciated assets into a corporation in exchange for stock, depending on individual circumstances. The transaction price will not include a premium.

Strive’s CEO, Matt Cole, who has prior experience managing a $70 billion fixed income portfolio, expressed that the company strives to exceed bitcoin’s performance by deploying capital with it as a key metric. Plans include engaging with overcapitalized companies to tap into discounted liquidity, using leverage, and utilizing structured financial products for risk management.

Post-merger, the organization aims to enhance its capital-raising capabilities, targeting a capacity of $1 billion through an efficient shelf registration process. This will provide the necessary flexibility to finance bitcoin acquisitions via both equity and debt sales.

Since its inception in 2022, Strive has experienced rapid growth, currently managing approximately $2 billion and garnering interest due to its stance against ESG mandates. The merger represents a strategic move to further promote bitcoin adoption within corporate treasury management, a mission that the firm will also advocate among its portfolio companies.