- Strive Asset Management merges with Asset Entities (ASST, Financial) to form the first publicly traded Bitcoin treasury company.
- The combined company will operate under the Strive brand and manage assets worth $2 billion.
- Innovative strategies include a $1 billion tax-free Bitcoin-for-equity exchange.
Strive Asset Management has announced a strategic merger with Asset Entities (ASST), marking the creation of the first publicly traded Bitcoin treasury company. This pioneering move will see the combined entity operate under the Strive brand, with a continued listing on NASDAQ and managing assets worth $2 billion. The merger signifies a unique approach to Bitcoin treasury management, blending Strive's asset management capabilities with Asset Entities' NASDAQ listing.
Under the leadership of CEO Matt Cole, formerly a $70 billion fixed income portfolio manager, the company plans to implement novel Bitcoin accumulation strategies. These include a groundbreaking tax-free Bitcoin-for-equity exchange under Section 351 of the U.S. tax code, capped at $1 billion. This strategy aims to allow private Bitcoin holders to unlock liquidity without immediate tax burdens through public equity.
The post-merger structure will see Strive Enterprises owning 94.2% of the company, whereas legacy shareholders of Asset Entities will retain 5.8%. This arrangement implies potential dilution for existing shareholders as the company leverages its $1 billion shelf registration for future Bitcoin accumulation through equity and debt offerings.
Strive's forward-thinking strategies also involve acquiring cash-rich companies at discounts, thereby enabling efficient Bitcoin purchases. The merger's reverse structure allows immediate access to capital markets, accelerating the company's ability to implement these strategies. By utilizing in-house fixed income and derivatives expertise, Strive aims to maximize Bitcoin exposure while managing associated risks effectively.
