Categories: Bitcoin Latest News

Strive Asset Management to Go Public, Launch Bitcoin Treasury Strategy With Merger

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

The deal, structured as a reverse merger, will leave the combined company operating under the Strive name and listed on the NASDAQ. Strive plans to build a sizable bitcoin reserve using novel investment and financing strategies designed to limit shareholder dilution.

One key strategy is a planned equity-for-bitcoin swap available to certain accredited investors, the companies stated in the press release. The exchange will use a tax provision known as Section 351, which allows appreciated assets to be contributed to a corporation tax-free in return for stock, subject to individual circumstances. The deal will not carry a premium to the company’s transaction price, according to the announcement.

Strive CEO Matt Cole, formerly a $70 billion fixed income portfolio manager, said the company aims to outperform bitcoin by using it as a benchmark for capital deployment. Strategies will include merging with overcapitalized firms to access discounted cash, employing leverage, and deploying structured products to hedge risk.

The company plans to expand its capital raising capacity to $1 billion post-merger through an effective shelf registration, offering flexibility to fund bitcoin purchases via equity and debt sales.

Strive has grown quickly since launching in 2022, managing roughly $2 billion and gaining attention for its opposition to ESG mandates. The merger, according to the company, is a next step in pushing for bitcoin adoption across corporate treasuries, a goal it will also advocate for among companies held in its funds.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

Read MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]

AddThis Website Tools

Recent Posts

Bitcoin $120K Target for 2Q May Be Too Conservative: Standard Chartered

Bitcoin (BTC) is poised to hit a new record high, with investment flows now the…

21 minutes ago

Sculpting Scarcity: Artist Maxfield Mellenbruch Brings Rare Steak Worth Millions To Bitcoin 2025

Bitcoin Magazine Sculpting Scarcity: Artist Maxfield Mellenbruch Brings Rare Steak Worth Millions To Bitcoin 2025 …

21 minutes ago

Bitcoin Tops $100K for First Time in 3 Months; Are Upside Targets Too Low?

Bitcoin is back in six figures, continuing yet another of its famous zigs when most…

1 hour ago

Standard Chartered Analyst Apologizes For $120K Bitcoin Price Prediction, Says It Is Too Low

Bitcoin Magazine Standard Chartered Analyst Apologizes For $120K Bitcoin Price Prediction, Says It Is Too…

1 hour ago

Coinbase To Acquire Bitcoin And Crypto Options Platform Deribit For $2.9B

Bitcoin Magazine Coinbase To Acquire Bitcoin And Crypto Options Platform Deribit For $2.9B Bitcoin and…

1 hour ago

Breakout Alert: Ether, Bitcoin Cash-Bitcoin Ratio Break Downtrends as DOGE, SHIB Bottom Out

This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.…

2 hours ago