Strive Goes Public Via Merger With Asset Entities (ASST) to Launch Bitcoin (BTC) Treasury Strategy

Shares of tech firm Asset Entities (ASST) rose 194% on Wednesday after it introduced that Strive Asset Management was merging with the NASDAQ-listed firm to turn out to be a publicly traded Bitcoin (BTC) Treasury Company.

The deal, structured as a reverse merger, will depart the mixed firm working underneath the Strive title and listed on the NASDAQ. Strive plans to construct a large bitcoin reserve utilizing novel funding and financing methods designed to restrict shareholder dilution.

One key technique is a deliberate equity-for-bitcoin swap out there to sure accredited buyers, the businesses acknowledged within the press launch. The change will use a tax provision referred to as Section 351, which permits appreciated property to be contributed to an organization tax-free in return for inventory, topic to particular person circumstances. The deal is not going to carry a premium to the corporate’s transaction worth, in accordance to the announcement.

Strive CEO Matt Cole, previously a $70 billion fastened revenue portfolio supervisor, mentioned the corporate goals to outperform bitcoin through the use of it as a benchmark for capital deployment. Strategies will embody merging with overcapitalized companies to entry discounted money, using leverage, and deploying structured merchandise to hedge threat.

The firm plans to develop its capital elevating capability to $1 billion post-merger by an efficient shelf registration, providing flexibility to fund bitcoin purchases by way of fairness and debt gross sales.

Strive has grown rapidly since launching in 2022, managing roughly $2 billion and gaining consideration for its opposition to ESG mandates. The merger, in accordance to the corporate, is a subsequent step in pushing for bitcoin adoption throughout company treasuries, a objective it’ll additionally advocate for amongst firms held in its funds.

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